Buying a new house should be exciting, but it can get pretty harrowing at times. You may worry you won’t qualify. You may feel unsure about house prices and worry about interest rates. If you’re considering renovating instead of purchasing, you may worry you won’t qualify for a refinance.
As we head in to the Spring season, this is the ideal time for us to discuss your goals, including a review of your financial goals, your credit profile, and find the best solution for your personal situation. I will help you answer the following questions:
1. How much can I afford?
Usually people pick their homes before they organize their financing, but it should be the other way around. Determine what monthly payment you would be comfortable with and what money you have available for a down payment before delving into your house hunting. We can review your current sources of income and credit profile to help you determine the maximum purchase price you can afford and are comfortable with.
2. What type of mortgage should I consider?
Fixed or variable? A fixed interest rate is set when you sign for the mortgage; it won’t change for the entire term. A variable rate, however, may change according to market interest rates. While market fluctuations are hard to predict, I can give you historical data and economic information to help you make this decision.
3. How much do I need for a down payment?
Many homebuyers assume they need to make a large down payment in order to get the best mortgage rate, but that’s not always the case. Mortgage insurance products allow buyers to put as little as 5% down and still get the same competitive mortgage rates.
4. What should I take into account for the future?
Everyone is excited about buying a beautiful home, but not everyone is thinking about what that means in the long term. For example, do you plan to have children, go back to school or take a trip of a lifetime? We would factor in the costs of your future potential plans as well.
In 2017 and 2018 the government imposed the Benchmark Rate and Stress Test rate on all mortgages funded by federally-regulated institutions. We will review these factors and see what impact, if any, it has on your ability to qualify for a mortgage.
Summary
I have access to many primary lenders who offer the lowest interest rates, best terms and conditions. They also have the most stringent qualifying criteria.
I also have access to numerous “alternative” lenders. These lenders consider files with less stringent criteria than the primary lenders for qualification.
In addition, I have access to several pools of private mortgage options and to individuals who invest directly in mortgages.
I realize that every individual has their unique situation. I will sit with you and go through all your possible options and outcomes so you can make an informed decision.