Once you have decided to get a new house and figured out how much you are willing to spend on it, the next thing you will need to do is get a mortgage.
The following are some of the basic steps you need to go through when getting a mortgage from Ontario mortgage brokers:
Clean Up Your Credit
To get the best possible mortgage deal and best mortgage rates, you need to work towards improving your credit. With a higher credit score, you can borrow more at lower interest rates.
Order a copy of your credit report well in advance as this will allow you ample time to take the necessary steps towards improving your credit score.
To get a clear idea of how much mortgage you can qualify, consider a pre-qualification.
Pre-qualification involves the mortgage broker reviewing (informally) information about your assets, income sources, and liabilities and giving you a rough estimate of how much you can borrow – based on the that information.
If (after pre-qualification) you are happy with the amount of mortgage you can take out, consider getting a pre-approval.
A pre-approval involves the lender checking your credit score, going through & verifying all the necessary documents, and confirming your ability to qualify for a mortgage.
Generally, home sellers love working with pre-approved borrowers.
Examine your finances
Before taking out a mortgage broker in Ontario, it is good idea to figure out how much mortgage you can afford.
Although you can get this figure through pre-qualification, you need to take stock of your incomes and expenses to determine what you can comfortably pay each month.
Shop for a mortgage
Once you have received a pre-approval and have assessed your finances, it is now time to do the actual mortgage shopping.
Mortgage shopping in Canada can be quite tedious. To make the process simple and straightforward, consider using the services of Ontario mortgage brokers – intermediaries who have many lenders from which to choose.