Helping homebuyers in Brampton, Toronto and the GTA get their dream homes and build long-term wealth is my passion. I want to help as many people as possible navigate the confusing and often overwhelming experience of mortgage financing. One of my primary recommendations to minimize stress and confusion is to get mortgage ready well in advance.
Here are 5 important ways you can do just that:
- Get your credit report. Getting a copy of your credit report will let you know how you will be viewed by lenders. You can order yours online at Equifax or Transunion. If you spot a problem, contact the credit agency to resolve the issue.
- Polish your credit. You can quickly improve your credit score by several points with continual good credit habits. Most importantly, pay your bills on time, every time. This is the single biggest factor in your score! Try not to let your credit accounts exceed 30% of the credit available. Before you cancel any credit cards, get advice. And don’t apply for a store card just to save on your purchase that day. Be sure to monitor your score regularly so you can watch how your good credit habits move your score higher.
- Have your downpayment ready. It’s good to go into homeownership with the maximum downpayment possible. If you are in the saving up stage of preparing for homeownership, now is the time to talk. There are several downpayment savings strategies available that we can put to work for you. For instance, you can withdraw up to $35,000 tax free from your RRSP or $70,000 per couple. Ask for details.
- Get help from family. Parents and grandparents have enjoyed the personal and financial benefits of home ownership themselves and see how hard it is today to make that important first step into the market. Check to see if they are willing to help by gifting or loaning some or all the downpayment. Or they may be willing to help you with your other debts, so your debt servicing ratios are in line with what is required by your lender. Co-signing the mortgage with you is another way your family might be able to help.
- Get advice early. Get in touch as soon as possible to talk about your homebuying plans. I can provide you with a preapproval that will tell you how much you qualify for and what your mortgage payments will look like. It’s also important to talk about the entire purchase process and learn what is important like making sure your offer is conditional on financing. I want to help you be fully prepared to get you where you want to go, and to make sure you can take advantage of any opportunities that come your way.
Also keep in mind that history has shown it is almost impossible to perfectly time the market. Homeownership has proven to be a very solid investment over the long term, so focus on buying a home when you are financially ready and when it fits your lifestyle.
I love working with homebuyers in Brampton, Toronto and the GTA. Let me make sure your homebuying journey has a happy ending! Contact me and find out how I can help.
