3 Simple tips to maximize your home buying power
Thursday Mar 29th, 2018
Before you get a mortgage pre-approval or start shopping for homes, it is crucial to put yourself in the best possible financial situation. Working on these simple strategies as much as a year in advance of your purchase can mean you are able to make a larger down payment, afford a more expensive home, and qualify for a better mortgage rate.
1. Don't apply for new credit
Instead of a night out, consider putting money towards your auto loan. Pay down your student debt, and ensure your credit cards are paid off every month.
2. Build your nest egg
For a lot of first time home buyers, the down payment is their biggest limiting factor. By starting early with an agressive savings plan, you will set yourself up for success down the line. Ask for that raise, set up an automatic savings account, and avoid unnecessary expenses.
3. Check your credit Score
Your credit rating can vastly impact not only the mortgage rates you'll be offered, but also your ability to quaify for a mortgage in the first place. If you know your credit score well in advance, you have plenty of time to remedy the situation. Two primary credit reporting Bureaus are used in Canada: TransUnion and Equifax. While you can absolutely pay for online access to your credit report, they will also mail it to you for free.