The Three Pillars to Finding the Best Mortgage Rates
If you are looking to get into the real estate business or just learn about mortgage rates in Surrey and buy a home then you have got to put some things on the table and think about the process. Without the proper knowledge, it could be a long and stressful process.
But if you have all the knowledge required then it should be easier. This includes getting a mortgage agent/ broker, filling forms and applications, signing deals and contracts, and more. One of the most important things to look at amongst all of this process is rates.
Finding the Best Mortgage Rates
All these numbers could be stressful. And that is why you should be working with a reputable agent, or team to ease things for you. And you also have to put your time and energy into doing the necessary research. This includes using local search terms like mortgage rates ontario to find the best possible prices. You also need to have the requirements necessary for eligibility. Here are three of the main ones;
Your Credit Score
A lower credit score doesn’t mean you are barred from getting a loan, but it sure is the difference between getting the lowest rate and more expensive borrowing terms. This is because it is one of the most important factors when determining risks and is what the lender will use as a benchmark to decide your ability to pay back your debt; the higher the credit score the more likely the lender will trust you.
In other words, if your credit score gets the lender to believe that you will pay in time, the likelihood of getting lower interest rates is almost guaranteed.
Some of the basic things you can do to improve your credit card score include; paying your bills, and on time, always decreasing or completely eliminating credit card balances, and if you have to have a balance make sure it is at most below 30% of your card limit. And make sure to also keep checking in with your credit card reports to clean any potential errors.
Your Employment Record
You also need to have an impressive record of employment. It is more impressive and trustworthy to lenders if you can present at least 2 or 3 years of steady employment, better if it is from the same company/ employer. Lenders will require pay stubs from 30 days before you apply. They will also need proof of any bonuses and/ or commissions you earn.
If you are self-employed, it could be difficult, but not impossible. You just might need to tie your business records from your multiple sources of income and tax returns.
Your Down payment
Saving up enough for the down payment is also an important factor. The more you put in your down payment the higher your chances of getting great rates. If you are able to fund at least a 20% down payment, then you are on the winning end. Of course, you will still be accepted with a lower down payment but that could only mean more interest rates.