Four Steps to an Affordable Mortgage

Posted: September 23, 2009    Categories: calgary mortgage broker, mortgage advice

Interest rates sit at near-historic lows.  This reason alone is compelling enough for many people to make the transition from renting to ownership.  If that’s you, congratulations!  You have many factors working for you right now: plenty of homes available for purchase, low interest rates, and the fact that many homeowners are looking to sell now (and are very negotiable as a result).

Mortgage Requirements Have Been Tightened

Do you recall the attitude that existed several years ago when mortgages were being handed out faster than Halloween candy?  Unfortunately, the “money for all” approach that many lenders had simply doesn’t exist today.  The market “crash”, along with tightened access to credit, have changed the way many people will be able to obtain a mortgage.

However, that doesn’t make it impossible.  It simply means that, in regards to applying for a mortgage, you need to have everything in order.  Your calgary mortgage broker will be able to provide more information in detail.

Preparing for Your Mortgage Application: Four Essential Steps

The golden rule here is to think ahead.  Don’t disillusion yourself into believing that you can have everything prepared in a matter of hours or days.  When you are dealing with multiple contacts across a variety of businesses, things can take days, weeks, or months to materialize properly.  Thinking ahead and organizing everything a month or two in advance can save you equal that in frustration.

Thinking ahead is actually pretty easy.  All you have to do is:

• Know your lendability - Order a copy of your credit report from the major bureaus so that you know what your credit score is.  If it’s good (above 650), great!  If it isn’t (below 600), work on getting it better (lower debt, pay bills on time, pay more than minimums, etc.).  Reducing your debt-to-income ratio before you apply for a mortgage is always a good idea (lenders are looking at your debt-to-income ratio more than ever now).

• Gather all necessary documentation - Proof of income, down-payment source, bank statements, bills, insurance, etc.  The sooner you have it the more prepared you are.

• Freeze all credit gathering until after the mortgage process – Applying for credit makes you more of a risk to a lender.  This is especially true when the lender could possibly provide you with hundreds of thousands of dollars.  Don’t apply for a new credit card until after you have your mortgage.

• Remain stable, accessible, and trackable - Not you specifically, but the source of where your money is coming from.  Lenders will want to see your down-payment in a location that is verifiable, such as a guaranteed investment account or savings account.  They’ll also want to see that your day-to-day lifestyle is sustainable, and the addition of a mortgage won’t create too much financial risk.

Taking the time to gather your financial documents and proof of good candidacy is essential.  A mortgage broker that specializes in Calgary mortgages is key in streamlining this process for you.

About the Purcell Mortgage Team:
The Purcell Mortgage Team are an industry-leading pair of mortgage professionals who have been serving Calgary for several years. JoAnne Purcell was ranked within the Top 50 Canadian Mortgage Professionals in the CMP Magazine. If you are in need a reputable calgary mortgage broker please contact us today!

The Purcell Mortgage Team are experts on Calgary mortgages!