Repeat Buyers | Surrey Mortgage Broker

EVERYTHING HAS CHANGED

Since The Last Time You Bought Property

CORRECT PURCHASING DECISION
REAL ESTATE & FINANCING

Real estate is a volatile market that undergoes rapid changes. Things can be drastically different compared to the last time you purchased a property. This is especially applicable when it comes to mortgages since there could have been editions to the mortgage policies, application procedures, associated costs, and so much more. Therefore, if you are a repeat buyer, always make it a point to be updated about the current market before making any purchase decisions.

Real-estate purchases involve a significant amount of financing. This is why it is important to be prepared with the relevant funding beforehand, in order to ensure a smooth transition of the property. For this, most people opt to go ahead with mortgages. If you are not quite certain how to proceed with mortgage applications, do not hesitate to reach out to a market expert who can give you insights.

Why Should You Start Looking Into Mortgaging Already?

If you are about to make a real estate purchase and are considering mortgages as a source of finance, start looking into your options in advance. Because acquiring a mortgage is no easy task. You need to go through the application procedure, submit the relevant documents, and qualify for the mortgage. This is done after a series of assessments and evaluations to ensure that you will not default on your payments. Hence, it is always better to begin your mortgage application process in advance.

# DO YOU QUALIFY FOR A MORTGAGE

One of the burning issues that repeat buyers come across is whether or not they qualify for a mortgage. This depends on whether you can pay your lenders back. To assess this, most lenders follow the Rule Book that defines 5 variables. Well, let us take a look at these variables that could affect the value of the mortgage you qualify for.

Interest Rates

Interest rates often fluctuate depending on the current market status. Hence, before applying for a mortgage, be up to date with the market rates. If you have a good credit rating, chances are that your lender would provide your mortgage at a lesser rate. Whereas, for those with poor or suffering credit ratings, lenders will charge a higher rate due to the risk involved.

Down Payment

The value of your down payment can also depend on your credit rating. If you have a good rating and credentials, lenders would allow for a comparatively lower down payment than what those with poor credentials have to pay. This is because the lenders have to incorporate the risk factor that comes along with poor credentials.

Eligible Income

When it comes to financing, not all of your incomes would qualify to be documented. Therefore, the total income you are eligible to on paper might also affect the amount of the mortgage you are entitled to.

Other Financial Liabilities

If you have other financial liabilities such as lease payments, credit card settlements, and loans, they reduce the total amount of income you could afford for your mortgage. Hence, these financial obligations can also affect the value of the mortgage you qualify for.

Credit Score

Your credit score reflects on your loan repayment history. Hence, if you have a good credit score, it indicates that you have made your repayments on time without defaulting. Hence, the higher the credit score, the larger the mortgage you will be entitled to.

#YOU ARE ONE STEP CLOSER TO

Stepping Into Your New Home

Now that you know how much you can invest in a new property, you can start looking into the real-estate options available to you. Wondering how to tackle this successfully? Well, worry not! Let us give you a step-by-step guide that would simplify the process for you.

Choose a specific location or neighborhood that you want to settle down in
Decide on your team - the lawyer, broker, property inspector, finance lender, and movers
Acquire a pre-approved mortgage to be certain of how much you can afford to invest in the home
Put in a bid for the property that you want to go ahead with
Once the bid is approved, finalize and secure your mortgage
Finalize the purchase of the home