THE SECRET OF GETTING THE LOWEST MORTGAGE RATES!
Here is a fact, in order to get the lowest available rates you qualify for, your application must be filled out EARLY and CORRECTLY in the home buying process!
Let me explain why those 2 factors are the key to getting the best rates.
Credit bureaus are trusted by lenders to demonstrate an individuals ability and willingness to pay their debts. Experts say that approximately 25% of credit reports contain serious errors; and as many as 79% contain some type of error. Since approvals and rates depend on your credit score a couple of points may disqualify you or raise your interest rate if you are close to the banks minimum guidelines. An early pre-approval involves a credit bureau check that can identify these errors or problems and with enough time they can be repaired before your bureau has to be submitted for lender approval.
Source of down payment is another big deal for the lenders. Canada’s Anti Money Laundering guidelines mandate that all sources of down payment on a purchase be vetted by the lender. Whether your down payment money is in your mattress or coming from out of the country don’t wait till closer to closing to get your ducks in a row. Often 90 days account history is needed to verify the funds are actually yours! Your Mortgage Agent will ask right away where the down payment is coming from and they can council you on the steps you must take to show the lenders that it is not coming from suspicious sources.
If you find that you may be falling short in one or two other places don’t despair, there are programs out there to help you get into a home, the drawback may be a higher rate. These programs often are set up for 1 or 2 years, enough time to get back on track and re-apply at that time for the “Triple A” lending rates. A qualified Mortgage Agent has the tools and experience to evaluate your unique situation from as early as the point you first decide you want to buy a home. Contact one before you make any other plans as they can evaluate and advise you on how the above risk factors can be managed. In some cases a few months of preparation can save your approval or thousands in mortgage payments over your mortgage term!
If you have any questions, feel free to call or email me. I will be happy to help you in this most important of home buying processes.
President, Mortgage Express Canada 905 – 709 – 3020
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