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Thursday, September 1st, 2016

Vancouver Home Mortgages – Adil Virani – Vancouver Home Mortgages

Vancouver Home Mortgages

Vancouver Mortgage BrokerWhat types ofVancouver home mortgages are available?  For different circumstances you need different types of mortgages.

If you’re buying a new home then you would need a primary mortgage which is known as a 1st mortgage. This type of mortgage covers anything beyond your down payment which should ideally be at least 20%, but can be as low as 5%.

Another  other form of mortgage is called a 2nd mortgage. A second mortgage can be up to 80% of your home equity. Home equity is basically the difference of between the amount of your market home price and how much is still owed on the home.

A second mortgage can be utilized in quite a different number of ways. You can use it for home renovations, or as a down payment to buy a second property, debt consolidation, or pay for children’s college tuition, just to name a few. You can even use it to make up the difference that you need for a 20% down payment on a first mortgage and avoid having to pay mortgage insurance.

How to Qualify for Vancouver Home Mortgages

To determine if you qualify for a home mortgage, you need to sit down and do some very detailed budgeting to ensure you can afford the mortgage, whether it be a first or a second mortgage.

This all depends on your monthly budget. You have to look at all the money you’re taking in and then deduct all your current expenses. But, you will also need to factor in other expenses as well when considering a mortgage which I’ll explain shortly.

Now, first you have to deduct what you will have to shell out for bills. This includes all your loans and monthly payments on credit cards, phone bills, utilities, insurance, food clothing and entertainment, plus any other additional expenses. Don’t neglect anything.

Next, look at what you’re paying out for rent. If you’re looking at a first mortgage, then look at what you’re currently paying for rent, and then see what wiggle room you might be able to afford to pay for monthly mortgage payments.

Also, if you’re looking at a first mortgage, you will have to factor in additional expenses such as lawyer’s fees, closing fees, hiring a home inspector and the cost of property taxes plus home insurance in your budget considerations. Some fees also apply to a second mortgage.

What’s your Credit History Like?

Your credit history can play a strong role in finding the bestVancouverhome mortgages. Before you apply for a mortgage, you should check out your own credit history to find out where you stand. If you come across any mistakes, which does happen or possible issues of identity fraud which fouled up your credit, you need to fix these problems as soon as you can.

Don’t be despondent if you’re credit history isn’t top of the line, because a Vancouver mortgage broker like myself specializes in finding people mortgages who aren’t the best mortgage risk.

The next thing you will need to do is to get all the information you can to prove all your source of income. The best source is your tax returns and CRA notices of assessment for the past several years, pay stubs, and contact information for all your employers so your income and employment can be easily verified.

You may also need to gather up all your sources of debts such as loans and credit card expenses, and household expenses. Gather all these things in individual files and have it all sorted out chronologically. Different lenders want different things, so get as prepared as you possibly can.

If you need help in finding the best Vancouver mortgages, please give me a call because it’s what I do best and can help you through the mortgage maze to find you the best possible rates for your individual circumstances.

 

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