How to Prepare Before Obtaining a Mortgage

How to Prepare Before Obtaining a Mortgage

When you’re looking to get a home financed, there are a few things that can really help you with your fixed mortgage rates and insuring you get the lowest possible rate you can.

Check Your Credit Report

If you have a good credit rating (or score), make a conscious effort to maintain your score, but if it’s not so good, consult a financial advisor or credit counselor and learn ways to improve your credit rating. You can ask for a free copy of your credit file by mail with the two credit bureaus in Canada, Equifax Canada and TransUnion Canada or for a small fee you can request online. The better your credit rating/score, the better the mortgage rate.

Pay Your Debts Down

During the process, which can take some time, you’ll want to continue putting all your money aside and paying things down as quickly as you can. This may mean doing something like setting up a savings jar and every time you use a money saving method such as using a coupon or getting items on sale, put the money saved in the jar at home. At the end of the month deposit that money to your account and use it to pay down your debt.

Don’t Switch Jobs

When you’re looking for the best mortgage rates you have to present an image. Now is not the right time to switch from that job you’ve had for years wait until you get the loan and the home before you make that move.

Stay Motivated

When all the paperwork gets ridiculous, take a little time to shop some of the dream homes out there to stay motivated to make the move. You might find you need that little extra push when it gets down to preparing to obtain a mortgage.