We tell all the children around us the importance of doing homework to prepare for any tests they might face in school and real life. However, we can now apply the same to the real estate market in our adult lives. Take a look at these essential homework pieces that you will want to do before applying for a pre-mortgage approval in Victoria BC.
Review your credit score.
The entire foundation of your mortgage application being accepted or declined revolves around your current credit situation. Before it is too late, it is better advised to find out whether your credit score is in good standing or not. If it isn’t, it will take you some time to fix your credit-related issues before you apply for a mortgage application so that there are fewer chances of getting rejected.
Your credit score is important because it will give potential lenders an entire overview of your financial history. It helps them determine the likelihood of you paying off the debt you get from them, along with how much interest rate they should charge you if your application is approved.
The last thing you want to do is look at a house and fall in love with it before knowing if you can even afford to buy it. Getting pre-approved for a mortgage will help you determine just how much you can borrow from a potential lender to purchase a house. It will also help you adjust your expectations a little bit if needed.
Learn about different mortgage options.
There are different kinds of mortgage options that you can choose from, and as such, you must educate yourself on them. You can choose between either a fixed or variable rate, an open or closed mortgage. Knowing your options is a good thing. If you don’t know what different kinds of mortgage options there are for you in the market, you might end up making the wrong choice for your future.
Ask your friends and family.
You don’t know just how big of a help this will be for you down the road. If you know somebody who has applied for a mortgage and is successfully paying it off over many years, it might help to ask them what kind of Mortgage they got and their interest rate.
In order to get the property of your dreams along with the right kind of mortgage, you need the best help you can get. Hire Brad MacLaren, the top realtor in Victoria BC.