5 Steps For Getting More Money Than You Need To Buy A Home

Many people are hearing about the surrender flags that are being waved throughout the US from lenders who backed the wrong people.  Canada is not quite in the same spot because our credit rules were never as lax as our southern neighbour.  That being said, it seems that lenders in Canada are becoming a little cautious about making sure they don’t become home owners, only money lenders.

Here are 5 steps, you can take that will have banks climbing over 877749_cash_grab_1themselves to loan you money for your next home purchase:

  1. Save YOUR money.  Historically, banks would give you a mortgage only if you could present them with 25% of the purchase price.  Today, 5% down payment is an option for a lot of purchasers.  Even a small segment can get 100% financing.  You want to get more money than you need.  Ante up 25% of the purchase price to secure the loan.
  2. Get a job.  And not just any job.  Get a job that you stick with long term.  Banks look for stability.  If you have been in your job for 15 years with the same company, they know they can find you for the next payment.
  3. Pay your bills.  Your credit rating is dependent of how you pay your bills.  If you pay all of your bills on time and in full, the banks can relax because they know you will pay them.  Even paying your phone bill late a couple of times can affect your credit score. 
  4. Get credit.  Paying your bills one thing.  The banks also look for whether you have a history of paying off loans and credit cards.  They will think that you are good steward of their money if someone else has taken a risk with you before and you kept your word in paying it back.
  5. Pay it back on time, in full.  Your credit score goes up if you pay off your credit cards every month, in full.  It tells the banks that you are not a wild spender who might get into trouble down the road with your impulse purchases.

785978_red_buttons_1It is a good idea to check your credit score before you call the bank about a mortgage.  Credit monitoring companies have been known to make mistakes.  Checking your score will allow you to make the corrections before the banks question you.  Here is a link to get your started:

https://www.econsumer.equifax.ca/ca/main?link=OPIEM&lang=en

Still not sure what your next step is?  Call me and I will walk you through it.

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