1. Determine your goals.
– What do you want out of your mortgage and what is most important? Is it flexibility? Is it the lowest rate? We strive to get you a mortgage that is specific to your needs and wants. In certain instances, a very low rate could mean penalties or conditions that you may not like, such as the inability to prepay, port or refinance your mortgage. We can tell you what works.
2. Don’t expect things to happen overnight.
– Getting a mortgage takes some prep time, and even though we perform mortgage miracles every day, it is not in your best interest to wait until the last minute. Take the time to provide us with the proper documents needed to satisfy the lender’s requests. There is always a possibility that documents provided to a lender may trigger an extra condition upon review. We want to be on top of the deadline, so that you can close easily, smoothly and on time. Lenders need time to do their due diligence before funding your mortgage, just as you would if you were in the same position.
3. Money talks.
– This is so important! Make sure you have enough money – purchasing a home may cost more than you think. Between closing costs, (such as lawyer fees, land transfer tax, etc), down payment and any other costs associated with purchasing a house, it is important for you to figure out your budget ahead of time. As an FYI, lenders require proof that you have at least 1.5% of the purchase price for closing costs. This is a general guideline they follow.
4. Good rates = Proven Income
– In order to obtain the best rates from lenders, your ability to prove income is key. For entrepreneurs/self-employed individuals, we need 2 years of tax returns showing enough net income to qualify. Call & talk to us to verify the amount of income needed in order to purchase the home of your dreams. If your income is too low, there are other options too. We always try to make it work, no matter what your occupational situation is.
5. Make smart investments.
– Investments are great for saving and earning money but if you’re thinking about buying and withdrawing those funds, make sure you don’t lock into something that you can’t access. Otherwise, this may prevent you from entering the market when you’re ready and you will have to wait for your locked term to end.
6. Maintain your good credit.
– Don’t max out all of your credit cards especially if you are self-employed. Always pay your bills on time and don’t make any large purchases (e.g. a car) on credit because it could jeopardize what you qualify for. Many people don’t realize this and buy furniture or large items for their newly purchased house only to find out that the lender has pulled their credit closer to their close date, and declined them based on their debt ratio. We can’t stress this enough!
7. Lastly, always use a mortgage broker!
– We can accommodate your employment/income situation – we can help you find the best mortgage to suit your needs. Our job is to answer any questions or concerns you may have and to make this process smooth and efficient for you. We are here to help!
P.S. Read Dr. Seuss’ In a People House too! One of our favourite “real estate” books that humorously reminds us what buying a house is about… making it your home.
Interested in learning more?
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LinkedIn: Darlene Hanley
My wife and I are wanting to buy our first home together next year, but we aren’t sure where to start. I like that you suggest paying your bills on time so you can qualify for a better mortgage. We’ll try to get rid of any outstanding debt on our credit cards so we can get a better mortgage rate. Thanks for the help!
Hi Derek! Thanks so much. Glad you liked the article. Good luck with the home-buying.