04 Nov Ottawa Real Estate Mortgage Information
If you’re thinking about investing in an Ottawa area home for sale, one of the first tasks you will face is securing a mortgage for your dream home.
While it’s true that interest rates have dramatically decreased in the last several years, it’s also true that lending agencies have become a bit more strict when it comes to approving loan applications.
Below, you’ll find several tips on things you can do to ensure that your Ottawa real estate mortgage loan application is approved.
Ottawa Real Estate Investing
Here are some things you should do before you ever apply for a loan on the Ottawa real estate market:
Get the Necessary Mortgage Application Documents Together First. No matter which lending agency you ultimately go with, most are going to ask you for a number of basic documents, including your last two pay stubs, W-2s, bank statements and income-tax returns.
Check out your credit score. It goes without saying that the better your credit score is, the more likely you’re going to be able to secure the loan you want. So check out your credit score with the three major credit-reporting bureaus and carefully review your credit history to make sure there are no errors that are pulling down your score. Typically, you’ll want a 680 or better.
Have a Good Idea About What Price Range You Want to Be In. By knowing how much you can afford, you can effectively plan a budget that will work for you and your lifestyle, ensuring that you don’t end up with a mortgage that is way too high to afford lately.
Look Around For the Best Mortgage Deal. Like any deal you’re a part of, you want to make sure you are getting the best deal possible. So look around and compare such factors as rates, closing coats, various types of loans and points.
Consider a Short-Term Loan. While this may have not been an option for all home buyers when the economy was booming, it’s become much more feasible to get a short term loan because of record low interest rates lately.
Don’t Delay in Getting Your Lender The Necessary Documentation. Unfortunately, if you miss a deadline that your lender sets, it could cost you the mortgage deal. So make sure you’re moving on your lender’s time frame.
Once Your Mortgage is Approved, Don’t Do Anything Drastic. Even though it’s approved, most lenders reserve the right to withdraw their approval if they notice a major change in your financial activity or credit score. So don’t do things like apply for a new credit card or close any current accounts. Do, however, make sure you continue to pay your bills on time.
Be Prepared to Explain Any Gifts You Receive. If a family member or friend gives you money to help with your down payment, then be prepared to explain that to your lenders. Some loans stipulate that a certain percentage of your down payment must come from your own funds.
Keep Trying. Just because one lender rejects your mortgage application doesn’t mean you won’t be able to find a lender who will ultimately approve your loan. Continue to be persistent and you’ll own your dream Ottawa home in no time!
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Until next time,