The credit question
When it comes to applying for a mortgage, you'll need good credit
One of the first things you will have to address before you start shopping for a home is your credit score. Like many first-time homebuyers in Canada or newer citizens, you may have to build up your score before applying for a mortgage.
First, you will need to meet with a mortgage professional or lender, who will do a detailed assessment of your current financial situation. Your income, debt load, employment history, assets and other factors will all be assessed.
You'll also need to have a credit rating done. (The two main credit agencies are listed later on.) These credit bureaus will look at how you manage your debts and gather various statistics on your debts (think credit cards, repayment records on loans and other kinds of debt).
But there are ways you can help boost your credit, such as not allowing your debt to become excessive, not making any major purchases before you embark on some serious house hunting, and paying down your existing bills in a scheduled on-time manner.
You'll also want to use your existing credit carefully and responsibly.
Demonstrating that you pay your credit cards or car loan, for example, in a timely fashion every month, will benefit your rating. Don't skip on bill payments and especially try to avoid defaulting on debt payments. Any court judgments, overdue/unpaid debt and collections items will remain on your credit file for six years — even if you're paying them down.
Finally, showing that you have a set amount of savings that you contribute to on a regular basis will also help your credit rating substantially.
By law, you are free to look at your credit record, and you certainly should do so. Check to make sure there are no mistakes, as these can affect your chances of qualifying for a mortgage. A credit report can seem confusing, so feel free to take it to a lender, who will help you sort out the details.
When considering you for a mortgage, there are five factors that you will be questioned on: income, debt, employment history, credit history, the property's value and your identity.
Lenders are thorough, so be prepared for it. Make sure you shop around, too, and see which lenders will provide you with the best loan options.
Next, if you are in good standing and accepted, you will be given a pre-approved mortgage certificate, which shows that the lender will provide you with a set loan and rate for a set amount of time (usually around 90 days).
According to Roula Vagopoulos, an accredited mortgage professional with Monster Mortgage, “A first-time homebuyer in today's market can expect to get the best discounted rates in the marketplace.”
Says Vagopoulos: “The best advice I can offer is to deal with an accredited mortgage professional who will find you the best deal for your family. This allows us to offer the consumer more choices and more competitive rates. It also means our advice is impartial and based on whatever is in the client's best interest.”
When it comes to applying for a mortgage, you'll need good credit
One of the first things you will have to address before you start shopping for a home is your credit score. Like many first-time homebuyers in Canada or newer citizens, you may have to build up your score before applying for a mortgage.
First, you will need to meet with a mortgage professional or lender, who will do a detailed assessment of your current financial situation. Your income, debt load, employment history, assets and other factors will all be assessed.
You'll also need to have a credit rating done. (The two main credit agencies are listed later on.) These credit bureaus will look at how you manage your debts and gather various statistics on your debts (think credit cards, repayment records on loans and other kinds of debt).
But there are ways you can help boost your credit, such as not allowing your debt to become excessive, not making any major purchases before you embark on some serious house hunting, and paying down your existing bills in a scheduled on-time manner.
You'll also want to use your existing credit carefully and responsibly.
Demonstrating that you pay your credit cards or car loan, for example, in a timely fashion every month, will benefit your rating. Don't skip on bill payments and especially try to avoid defaulting on debt payments. Any court judgments, overdue/unpaid debt and collections items will remain on your credit file for six years — even if you're paying them down.
Finally, showing that you have a set amount of savings that you contribute to on a regular basis will also help your credit rating substantially.
By law, you are free to look at your credit record, and you certainly should do so. Check to make sure there are no mistakes, as these can affect your chances of qualifying for a mortgage. A credit report can seem confusing, so feel free to take it to a lender, who will help you sort out the details.
When considering you for a mortgage, there are five factors that you will be questioned on: income, debt, employment history, credit history, the property's value and your identity.
Lenders are thorough, so be prepared for it. Make sure you shop around, too, and see which lenders will provide you with the best loan options.
Next, if you are in good standing and accepted, you will be given a pre-approved mortgage certificate, which shows that the lender will provide you with a set loan and rate for a set amount of time (usually around 90 days).
According to Roula Vagopoulos, an accredited mortgage professional with Monster Mortgage, “A first-time homebuyer in today's market can expect to get the best discounted rates in the marketplace.”
Says Vagopoulos: “The best advice I can offer is to deal with an accredited mortgage professional who will find you the best deal for your family. This allows us to offer the consumer more choices and more competitive rates. It also means our advice is impartial and based on whatever is in the client's best interest.”