If you’re in the market to upgrade your home as your family grows or a first-time buyer, you’ve probably been watching the deals hit the market.
But let’s take a pause for a moment.
As an experienced local agent, I learned long ago that nothing in this life is free. Everything has a value – and that’s how it should be.
There are a handful of rules in the small print of these mortgage offers, which means not everyone will qualify.
The flurry of activity to help folks climb or get on the first rung of the property ladder should be a reminder that you should only purchase what you can afford.
Below are a few reminders to ensure you stay within your limits when weighing various mortgage offers. But please note, my tips are general in nature, and you should consult a financial advisor or mortgage professional for advice specific to your circumstances.
But do not hesitate to contact me if you’re thinking of selling or buying something new. I can help sell your current property and find your next home.
Talk to experts – Consult with a bank loan officer or a mortgage broker to better understand the amount of money you will be eligible to receive. This information will help you target potential properties efficiently.
Your situation – As part of your research, consider your income, expenses, credit score and debt-to-income ratio. These calculations will help you better understand a mortgage’s impact on your lifestyle.
Top marks – Improving your credit score will help secure more favorable mortgage options and terms. You can improve your status by paying bills on time, reducing debt and addressing any errors on your credit report.
Shop around – Don’t go for the cheapest interest rate. Every loan package comes with terms and conditions, which might be more expensive in the long run for your needs. If you find the mortgage market a little bewildering, seek professional advice from a mortgage broker.
Downpayment delight – The larger your downpayment, the more money you will have to buy either your first home or the next home of your dreams. If you’re more conservative, a larger downpayment will reduce your monthly repayments.
Think long-term – It’s expensive to over-extend yourself and then decide to sell as your remedy. The long-term affordability of your mortgage payments must be critical to your thinking.
* And remember, these guidelines are general in nature, and you should consult a financial advisor or mortgage professional.