Your dream of buying a house can turn into a reality if you get good mortgage rates in Alberta. And for that to happen, you have to work hard towards improving your credit score. Shopping for a house is unlike grocery shopping. While the latter can be outsourced to your friends if you are busy, home hunting is something where you need to invest your time and energy! One of the crucial aspects of striking the right mortgage deal is availing of the best mortgage rates in Alberta. For this to happen, you should have a look at the following tips, which will help you get what you are aiming for:
Your credit score is your report card, which will tell how good or bad your credit position is. If your credit score is good, you can expect the lenders to give you lower interest rates else, be ready to pay higher interest rates. Pay your credit bills, and don’t keep any outstanding debts when thinking of buying a home.
Save enough to be able to pay for a big chunk as a down payment. If the down payment is more, it will mean that the subsequent mortgage payment will be low, and thus, the interest rate will automatically come down.
Keep the history of your employment record ready. The mortgage lenders will like to have a close look at your employment history so that they know that you have a steady income and can pay the mortgage installment. Lenders will check how frequently you have hopped the jobs and what has been your average duration with one employer.
Knowledge about your debt to income ratio is important to get the best mortgage rates. If you are employed and can furnish all the necessary documents related to your employment history and salary, then you will get better rates in comparison to self-employed people who might not be able to show consistent proof of income. The source of income is an important factor while arriving at the debt to income ratio because if the income is higher, repaying capacity will be high and vice versa.
Find out the closing costs, which are generally 2-3% of the price of the home. The loan estimate sheet, which you will get from the lender, will give the exact figures. Make sure you read the numbers thoroughly before signing the deal.
Once the interest rate figure has been settled and you have shortlisted the property, talk to the mortgage lender regarding the documents needed and how much time will the entire process take. Read the online testimonials of the mortgage lender so that you have an idea regarding the kind of services provided.
Visit www.frankmortgage.com for more information on mortgages and interest rates in Alberta.
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