Owning a home is one of your goals. Could this be the year that you finally achieve it? A lot depends on where you are right this minute. Check yourself on these four fronts and consider where you stand. If things are looking well, it may be time to look into your options for Toronto mortgage services and solutions by speaking with an agent.
You Aren’t Having Difficulty Managing Your Current Living Expenses
At the present, you have enough money coming in every month to ensure all of your obligations are paid on time. That includes the rent, any utilities that the landlord doesn’t cover, and everything else in your budget. That indicates you’re at least on the way to being able to afford owning a home.
If you also have money left over at the end of the month that routinely goes into some sort of interest-bearing account, that’s all the better. It means you have funding that can help cover costs like property insurance, repairs, and other essentials. As long as you can maintain that income and possibly increase if from time to time, you have a good chance of being able to buy a home and make the mortgage payments easily.
Your Income to Debt Ratio is Good
You do have some debt, but nothing that can’t be managed. The credit card balances are paid off every billing cycle, so they are not a problem. You go have a car loan, but it will be paid off in a couple more years. That means the relationship between your debt and your monthly income is quite good.
That’s a good thing, since lenders of all types want to know applicants have the resources to repay mortgages on time. If you’re managing your credit lines responsibly now, there’s a good chance lenders will offer more competitive terms and conditions in order to secure your business.
You Have a Reasonable Amount Saved for a Deposit
Over the last several years, you’ve set aside money that can be used for purchasing a residential property. That’s good, since not all lenders are willing to finance the entire purchase price. That’s true even if you have impeccable credit.
The ability to apply a larger deposit means there’s less for the lender to finance. When you can cover something along the lines of 25-30% of the total amount needed, many lenders will consider you to be a good risk. That in turn can also lead to being offered more competitive terms and conditions. It also means you can probably lock in lower mortgage payments.
You’ve Found the Right Property
All this sounds good, but the time is still not right unless you’ve found the right property. It should be something that’s anticipated to appreciate in value as the years pass. The property should also be one that you can imagine owning for decades.
Go ahead and prequalify just in case, but don’t feel any pressure to move forward until you find a residential property that sports all the features you want. When you do, it’s nice to know that the financing is already in order.
Whether you want to secure a first mortgage or to recapitalize a loan a loan that’s already active, you do have options. Talk with a broker today and see what can be worked out. The solution you seek may be easier to find than you think.
