Pre-Qualified, Pre-Approved Mortages Ottawa, Ontario

Discover The Seven Mistakes Millennials Make When Purchasing Real Estate

You’ve done all that you can to lower your debt to income ratio. Now, you’re finally ready to purchase a new home by putting down a 20% down payment.

 

Following are seven mistakes millennials make when purchasing real estate along with a few tips that you can use to avoid them.

 

It is first important to note that mortgage lenders rarely offer their very best rates up front. Another thing that you should know is that it is never a good idea to use all of the cash that you have for your down payment. If you divorce your spouse or if your car breaks down, it will be hard to meet your monthly obligations. Set aside some extra money for unexpected developments instead.

 

Don’t buy a condominium if a house is what you really need. Although millennials are having their children later than most other generations, they do eventually have children. They may even want pets. Given that both will require some additional space, it is better to look at your long-term goals.

 

Shopping for property without professional assistance is also a major mistake. This can have a harmful impact if you make the mistake of sharing information pertaining to a prospective offer with a seller’s agent. Get help when you need it. Additionally, you should avoid confusing online calculations with actual rates.

 

Online calculators should not be relied on for establishing an actual purchasing budget. These do not account for important factors such as the buyer’ credit score.

 

Although the bank is willing to extend a specific amount of money, this does not mean that you can actually afford to borrow this much. You actually have to account for the full costs of home ownership. Rather than focusing on the amount that lenders are willing to give you, focus on how much mortgage debt you can successfully manage.

 

Another vital consideration that you should make is the risk associated with mortgage interest rates. These are not unlike winters in Canada. While they can be moderate for a few years, they can also spiral out of control unexpectedly. Thus, you always have to consider any possible changes that your mortgage payment might undergo at renewal before using these products to finance the purchase of a new home.

Buying a New Home: Capital Mortgages Ottawa

Top 5 Ways to Get a Stress-Free Mortgage

The housing market is finally heading in the right direction with interest rates going down. Getting a house is more difficult than what it used to be however and it can be stressful, particularly if you are a first time buyer. Finding a house and negotiating with the seller can be hard but the most difficult part is often getting a mortgage in the first place.

Look for a mortgage lender before you find your new home

It’s all well and good finding your new home but if you haven’t found a company prepared to lend to you then it’s all in vain. It is pretty important to get pre approved by a qualified lender so do your research. Let the team at Capital Mortgages guide you through your decision process. As an independent we do not work for any individual institution, nor are we owned or mandated directly or indirectly by any one lending institution.

Make sure that you have a deposit

Ensure that you know the down payment amount and you have it in your bank and ready to go. The rate of interest you pay on the amount of money you borrow and the size of your deposit are key to the mortgage deal you’ll be able to get.

Stay financially stable

Just because you have been pre approved, it doesn’t mean that you are guaranteed to be approved when you find a house. You need to continue being careful with your savings and don’t do anything that would adversely effect your financial situation like changing jobs. Lenders like to see that you have a steady income and are being careful with your money.

Pay off any existing debt

This step should really come before you have even found a mortgage lender, you should try and clear any existing debt that you have. This includes credit cards, store cards, loans, overdrafts and anything else. If it’s impossible to get rid of them completely then just minimize them as much as possible. Additional debts will lead to higher mortgage rates and lenders will be less likely to accept you at all if you have existing debt.

Try not to take out any more credit

Avoid taking out any new credit, no matter how small it is. Lenders will see that you are in more debt and will put their interest rates sky high in retaliation. All your attention should be getting your mortgage and being able to make the repayments each month, additional credit will just put more stress on you and it should be avoided.