Did you find the house of your dreams, a house at an unrepeatable price, or a bank that offers a very low interest rate, but your credit history does not help?
IBuyHouses Toronto advises that you explore three alternatives. One can include as income money that is not a product of their work, such as government aid or child support. Another is to try to qualify for a subsidized mortgage. A third alternative is to get a co-signer who trusts you in such a way that you compromise your credit in an alien house.
Having a home of your own is an important goal for Canadian families. But it can be very difficult. Except for the exceptional cases of people who have all the money in the bank to buy a house, the rest of the mortals need a mortgage loan. And if you need a mortgage loan, you also need a good score on your credit history.
Rebuilding your credit is always the best way to improve your chances of qualifying for a mortgage. However, it can be a very long process.
The IBuyHouses Toronto advises that before going to a bank to request the approval of a mortgage loan, use a mortgage qualification calculator.
This will give you an idea of the price range of the property that is within your financial possibilities and even how much the mortgage could go up.
Experts in finance advise that the monthly installments of a mortgage commit up to a maximum of 28 percent of the income.
On the other hand, it is possible that before improving the credit score, a house appears at an extremely attractive price or attractively low interest rates.
To people who are in that type of circumstances, IBuyHouses Toronto advises you to explore the following alternatives to obtain the approval of the mortgage loan and buy the house.
1. Increase your qualified income
When a mortgage bank takes a look at your income, they usually take a very conservative position. For example, if your only job is part-time, the bank may skip that income unless you have a history of more than one job at a time. Also, if you have a business the bank could reduce the business expenses of computing what your qualified income is.
2. Find a different mortgage
Some mortgages have less stringent requirements than others when it comes to income.
3. Get a co-signer
There is always the option of getting a co-debtor or co-borrower, recalls IBuyHouses Toronto. With this alternative, the mortgage bank will take into account your credit history and your qualified income and that of your co-borrower. If the co-signer is a person who will not live the property, the mortgage bank may refuse to grant the loan. You can also impose additional restrictions. They can, for example, demand a higher initial payment. Always remember that, from the bank approving the mortgage, the debt is yours and your co-debtor, even if you do not live the property and have lent your good credit as a favor. For that reason, the mortgage is going to be taken every time the co-debtor applies for a loan, be it a loan, a credit card or another type. If you want to learn more, contact us at.
Comments
Post a Comment