Are you looking for a new home? Or are you refinancing your existing home to help pay off your debt sooner? Here some valuable advice to keep in mind.
Get pre-approved. If you’re shopping for a new home, make sure to get pre-approved for a mortgage first. This will help you narrow down your search to just the houses within your price range and give you the upper hand when you are negotiating a closing. While you’re waiting for your application to clear, you can do some proactive research on mortgage rates in Canada with ratesupermarket.ca.
Clean up your credit. Put more toward credit card debt to decrease your ratio of debt to income. Also, if you haven’t taken a look at your credit report lately, it is important to do so. It will help you spot discrepancies that could decrease your purchasing power when you are ready to buy a new home.
Put more money into the down payment. Compare the total cost of your home with the minimum down payment to the total cost with the maximum down payment. If you have the ability to pay more upfront, it could save you thousands of dollars and reduce the amount of time that you have to carry the mortgage.
Don’t try to compare apples and oranges. Different lending programs offer different contract terms, so it can be frustrating to try to make a comparison. You can get an idea of typical mortgage rates with ratesupermarket.ca, and you can also try to figure out how much your home will cost over the term of each mortgage scenario and compare bottom lines to get a clear picture.
This has been a sponsored blog post.