It’s natural to want to own a home rather than rent. You no longer have to stress about monthly rental payments and you’ll gain a place where you can make memories. However, due to the price associated with home ownership, most potential homeowners have to secure a mortgage.
Before the lending company approves the mortgage, you will need to check your credit score, get it pre-approved, and negotiate the best mortgage rate possible. All this can be stressful to a potential homeowner, especially if it’s your first time going through the process.
Homeownership doesn’t have to be stressful. With the right partner by your side, you can have a smooth and hassle-free transition into your new home. I, Jennica George, am an experienced and reputable Realtor and property professional in Regina.
The following are tips that will help you apply for your Regina Mortgage:
Check Your Credit Score
Before signing off on the mortgage, a lender would first assess your past financial dealings through your credit score. The score varies from 300- 900, helping people gauge how credible you are when it comes to your finances.
What they are looking for is a high credit score. Any reputable lending company in Regina will be more than happy to lend money to a potential homeowner with a score of above 600. This is a person who pays their loans on time and is never late on their bill payments.
How do you check for your credit score? There are a few online platforms that you can use. I recommend either TransUnion or Equifax. Check on your online store every few months to ensure that you are on the right path to a good score.
Make a Down Payment
While you are looking for financing, lending companies will ask you to put down some money. This is considered a show of good faith. A down payment is also beneficial in that it reduces the size of the encumbrance and the interest to be paid.
In Regina, there is a general rule of thumb when it comes to the home price and the minimum down payment:
- For houses with a price of less than half a million, you will be required to have 5% as the down payment.
- Houses between $500,000 and a million, 5% down payment for the first half a million, and 10% for the balance.
- You will be asked for a 20% down payment for houses with a price above a million
Have Stable Income/ Employment
A mortgage lending company needs confidence that you are able to make the mortgage repayments on time. The best way to guarantee this is to show them your past employment history and where you are currently employed.
If you are your own employer and have a business running, you might need to show them the books. The mortgage company will be interested to know if you have been profitable in the past few years.
I can help you create the ideal mortgage lending application. I can also offer you tips on what banking and loan institutions look for.
Pay Existing Loans
Compared with other investments or purchases that you will make in your lifetime, few can match up to the price of a house. Therefore, the mortgage company will spread the payments out over several years. You are therefore looking at a long-term loan.
You wouldn’t want to jeopardize the monthly payments of your mortgage. I recommend that you pay off any existing car, school, or personal loans that you may have. Depending on your credit score and other financial factors, some companies might not be willing to approve your application if you have outstanding debts.
That said, you don’t necessarily need to have zero debt to apply. Lending companies acknowledge that this might be impossible for you. However, keep them low and don’t forget to make the payments on time to maintain a good credit score.
Secure Pre-approval of Your Mortgage
A mortgage pre-approval refers to the acceptance of your application by the lending company after an evaluation of your financial capabilities. You will receive a pre-approval letter, dictating the terms of the mortgage. It will contain the amount you are to receive, the length of the mortgage, and the interest rates among other details.
From the pre-approval letter, you will know what type of property to hunt for and what price range you’re working with.
Know the Mortgage Rate
The type and percentage of your mortgage rate will determine the amount you pay every month. With an affordable mortgage rate, you will be able to comfortably pay your mortgage while meeting your other financial obligations.
You might not know how to identify the ideal lending company offering the best mortgage rate. With my experience in the Regina property market, I have the network to help you get the best deal possible.
Assess Your Current and Future Needs
Before making the final decision, I suggest that you comprehensively assess your current and future lifestyle needs. Think about schooling, investment, and other dependents who are looking up to you.
Applying for a mortgage doesn't need to be stressful. If you follow these steps you’ll be in a better position to make your application.
Are you still feeling a little of your depth? There is nothing to worry about there! All you will need is a proven and trusted professional to help you navigate the Regina real estate market.
As a member of the Saskatchewan Realtors Association, I, Jennica George have the dedication and passion to help you move into your new home. Whether you are looking for a single-family residence, condominium, or apartment in the downtown area, I am ready and willing to offer you my real estate knowledge. Let me help ease the stress of home ownership.