One of the most important commitments you will ever make
Buying a home is not like buying a pair of shoes, it is a financial decision that will affect your lifestyle for many years to come. Simplify the process by contacting your Mortgage Broker in Oakville who will carefully explain your options, and recommend the most suitable financial solution for your mortgage approval at the lowest rate with the best flexible terms. This will enable you to have a stress-free experience of home buying. Furthermore, you will be offered their assistance throughout the entire mortgage process.
What you first need to know
When wanting to buy a home the first thing you are going to need is a sufficient amount of money for making a down payment. The amount may vary, but usually, the base amount is 10 to 20% of the purchase price. The next step is getting a mortgage pre-approval important for two reasons. Firstly, it gives the mortgage broker the information on the mortgage size you are eligible for, and secondly, it remains the quoted rate for a period of 120 days, meaning that should there be a rate increase, you are protected.
Your mortgage pre-approval application will be subject to the information you supply. You need proof of income, a list of your debts, employment history, for example, how long you have held your present position and details of your last job and how long you worked there. The lender will also want to know details of your credit history if you pay accounts on time, and whether you always make a full payment on the due date: in general, your credit rating. You will need to supply proof of identity, as well as the value of the property that you want to purchase. Your Mortgage Broker will help to gather the necessary information, as well as looking for an appropriate lender.
Can you afford your chosen property?
The lender will consider how much of your income will be spent on mortgage repayments, as well as on your other debts, such as a car repayment, to assess whether you can comfortably afford the home. Remember, you are going to need monthly expenditure on utility bills and applicable various taxes. You will also need to have enough money left to buy food, clothes, and entertainment. All of this is taken into consideration before a mortgage application is approved by the lender.