Did you know that the summer months typically see an increase in home sales? We thought we’d put together this quick article to help you find out how to get a mortgage that works best for you. But don’t forget, to ensure your summertime home purchase is a successful one, chat directly with us for the right option for you.
First tip? Learn your debt-to-income ratio (DTI)
Your DTI is the ratio between your debt and your income. It reveals how much you owe from how much you earn. Ideally, borrowers should have low amounts of personal debt while earning an income, enabling them to support their mortgage. Still, a high DTI doesn’t necessarily stop you from being able to borrow. We can walk you through your options—you may have more choices than you think.
Things to think about:
- Student loans
- Credit score
- Reduce current expenses
Next? Getting a Decision in Principle for a mortgage.
A Decision in Principle (DIP), also known as an Agreement in Principle (AIP), is a preliminary assessment from a mortgage lender that indicates how much they might be willing to lend you for a mortgage.
Unless you’re buying in cash, a Decision in Principle is strongly recommended. Some estate agents will not even entertain working with a client unless they have this document.
Finally? Stay close to your mortgage professional (of course!)
We see it every day—our team goes above and beyond to smooth out challenges, confusions, and concerns, as our clients apply for loans. The closer our clients stay to us throughout the application process, the better outcomes we’re able to deliver them. Regular check-ins, promptly respond to paperwork requests, and bring any new financial developments to your broker’s attention.
Bonus tip! Buy what you want, when you’re ready
You’d be surprised how many people place their wants and needs at the bottom of their own ‘to-do list.’
Do you have a family that needs more room? Are you downsizing? Do you want to live closer to your job or your children’s school? These considerations are just as important as the kind of loan. The answers to these questions will help you choose the area you live in and the type of home you eventually buy.
You can achieve the dream of owning your home this year by better understanding your complete financial picture and working closely with a mortgage professional to reach your goals. We help make this dream come true every day. There’s no challenge we haven’t seen tackled, and there’s no obstacle we can’t figure out how to overcome. If you’re ready to explore your mortgage options, get in touch today!
Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
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