6 Tips To Follow When Applying A Residential Mortgage

Are you planning to apply a residential mortgage? If yes, there are so many things to consider. From credit score to the right time to apply and a lot more, it is important to take the help of a residential mortgage broker in Abbotsford to help you make the right choice.

In this blog, we have discussed top six tips to follow before you venture out to your mortgage broker.

1. Start with your credit report

When you apply for a mortgage, lenders will most likely examine your credit first, and you should do the same. There is no better moment for frequent credit monitoring than when you are attempting to demonstrate your trustworthiness to a lender in order to obtain the best potential rates. You want to ensure that your credit report is as accurate as possible.

2. Be realistic about your budget

Home ownership may be a dream for many Canadians, but don't lose sight of reality. If you're looking for a rate that requires a 20% down payment but you only have about 5%, try sorting out your budget or apply for an RRSP.

3. Understand how lenders operate

Your credit score, which is used by lenders to determine the loan amount and interest rate you are eligible for and reflects your capacity in repaying it. The higher your credit score, the easier it will be to receive the desired amount and rate.

4. Determine how you will finance it

After researching the types of financing available, decide which is best for your financial condition when purchasing a home: a 15-year or 30-year mortgage, adjustable or fixed. If you want security and the assurance that your payments will not rise, a fixed rate mortgage may be the best option. If you feel mortgage rates will continue to fluctuate, you should consider an adjustable rate mortgage.

5. Larger down payment means more options

Zero down payments, particularly for mortgages, appear to be non-existent for past many years. Putting more money as down payment will help you pay less each month and keep your finances in order.

6. Check for prepayment penalties

Another thing to consider while applying for a mortgage is if you'll be punished for paying it off early. Some homeowners make extra payments to get out of their mortgage faster, either on a monthly basis or when they get a monetary windfall. That’s why, make sure you don’t get penalized while doing this.

So, these were some of the top tips to follow when applying a residential mortgage in Abbotsford. If you are looking for experienced Abbotsford mortgage brokers who can help you secure an amazing home buying mortgage deal, rely on none other than the team at Sandhu & Sran Mortgages. We are your trusted choice for mortgage approval, refinancing, renewal, and transfer. Contact us to get started with your mortgage application.