If you’re buying real estate, you probably think that applying for a mortgage is about as much fun as going to the dentist. But it doesn’t have to be this way if you do the following:
- Check Your Credit Score: Get a copy of your credit report. What’s your score like? Paying off any outstanding credit card debt is one way to improve your rating.
- Do the Math: Now that you know how much you owe, gather all information of your assets – bonds, stocks, investments, your present home, other properties, etc. – and add them up. Tip: Owning more than you owe is good.
- Pre-Qualify: Meet with a lender or bank to get a rough idea of how much you can borrow. Remember, however, that this is an informal process, and it’s not a pre-approval, but it does help you gauge what you can afford and whether you’re ready for buying real estate.
- Choose a Lender: Shop around – even if you have a good relationship with your bank, feel free to explore other options. If you haven’t got the time, a mortgage broker can shop around for you, but before choosing someone, make sure he or she isn’t affiliated to a specific lending institution or bank.
- Get Pre-Approval: Similar to pre-qualifying, pre-approval is an actual authorisation of a specific amount from a lender, locked for a period of time into an interest rate.
If you’re interested in buying real estate on Ontario’s beautiful Southern Georgian waterfront, contact us, Nancy-Jo and Iain Gurr. We specialize in cottages, luxury homes, retirement living, and first-time home buying.