Are you considering buying your first home? Here, at Noble Mortgage Architects we can help prepare you for one of life’s most exciting experiences. This checklist will help you get more organized and prepared for your next journey in life.
- Are you ready?
Get your budget in order. Ensure your monthly cash flow is healthy. Make sure you have at least 5% saved for a down payment. If you need some advice or guidance on how to start doing this, you can contact us here at Noble Mortgage Architects, and one of our dedicated team members will assist you every step of the way.
Many people have never actually attempted to ever make a budget and have never realized the effectiveness of seeing all of their income and expenses on a single sheet. It can be a little frightening to see what really comes in and what goes out. It could be a great reality check and put your spending habits in order.
- Is your Credit Ready?
Make sure you know all the details about your credit report before you apply for a loan. You can increase your credit score by reducing your credit card balances and by paying off fixed-term loans.
First things first:
- Check your credit report – this will let you see if there is anything that is hurting your credit.
- Dispute Inaccurate Information- this can also hurt your credit score and get your application denied. If you have proof of any errors, you would need to ensure it is removed from your report.
- Payoff delinquent accounts- this includes late accounts, charge –offs, bills in collections and judgements. Mortgage lenders need to be convinced that you will make your payments on time. Outstanding delinquencies will kill your chances of getting approved for a mortgage. Pay off these accounts before putting in an application. If you have had a late payment recently or just paid off some delinquent accounts, wait at least 6 months before applying for a mortgage. The older the delinquent account, the better your credit appears.
- Reduce your debt-to-income ratio – Bring your monthly debt payments to at most 12 % of your income. The lower the better!
- Don’t incur any new Debt- taking on new debt can make a mortgage lender suspicious of your financial stability. Try to stay away from any new credit-based transactions until after you have gotten your mortgage.
- Will you qualify?
Even if your credit is all in order, another qualifying factor will be your income and monthly expenses. Lenders are going to check your income and monthly expenses. This means any large payments, like a car loan, will count against you. You will be asked to provide bank statements, along with pay stubs. So be prepared to explain any big purchases. It is best to have very few fixed monthly expenses other than rent.
- What can I afford?
Realistically, your mortgage payment should not exceed 30% of your take home pay, including all insurance, taxes and fees. You need to understand that condo fees, local tax rates, and if you need a PMI, will eat away at how much you can actually afford.
- It’s time to shop for a Home!!!
Once Noble Mortgage Architects has pre-approved all your borrowing needs, it’s time to look for your Home!
Stop wondering if any of this is possible. Contact us today and let’s find out what your future has in store for you.
All of our team members are professional and hard working. We want to provide you with the best quality service that you deserve.
And, if English is not your first language, don’t worry, we have that covered. We will make this whole process as smooth as possible.
Call us today at (416)241-2227 or visit our website www.noblemortgages.ca
Happy House Hunting!
Blog written by Noble Mortgages