Are you going to apply a mortgage to buy your first home? Getting a residential mortgage can greatly help in securing the funds you need to pay your seller or real estate broker. Before you apply a mortgage, it is important to understand the tips and tactics that can help you secure the best mortgage deal at the competitive rate possible.
- Save for down payment
No matter, how small or big house you are planning to purchase, making a down payment is a must. It refers to the amount of money you pay up front to your realtor. It is deducted from the purchase price of your home, and the remainder is financed by a mortgage broker in Abbotsford, Edmonton, and Surrey. In case, your down payment is less than 20%, you are eligible for a high-ratio mortgage.
- Improve your credit score
A low credit score cannot prohibit you from obtaining the best mortgage rates offered in Canada. The minimal credit score needed to get a mortgage is between 620 and 679. However, with a credit score of 680 to 724 points, you may be able to receive reduced borrowing rates. Even if you have a high credit score, good financial habits can help you borrow more money.
- Get professional advice
A mortgage broker can help first-time home purchasers understand the complexities of mortgage types, options, and features. When buying your first home in Canada, you may be concerned about unforeseen bills or overspending. An expert mortgage broker can explain the various mortgages options you can apply for, along with the merits and demerits of each.
- Get pre-approved for a mortgage
You may have heard of pre-approval. It can greatly help if you are looking to buy a home by impressing the seller or realtor that you are eligible of buying and interested in a specific property. Also, securing a pre-approval can lock you in an interest rate and protect you in case the mortgage rates continue to rise in the future. In general, you have 120 days to lock in a mortgage rate with a pre-approved mortgage.
Conclusion
If you are planning to apply a residential mortgage, a mortgage broker can really help. From negotiating the interest rate to approving the mortgage, a broker can help you get the ownership of your home. They act as a single point of contact between a buyer and realtor. All of this can make the process less stressful, especially if this is your first time applying for a mortgage.
Sandhu & Sran Mortgages is a top Abbotsford mortgage broker firm that helps first-time home buyers in getting approved for an affordable mortgage deal. Call us today for more details or get started with your mortgage application.