If you are planning to buy a new house, you must start your search and preparation work well in advance. Apart from looking at homes for sale in Edmonton, you must also focus on your credit score and budget. A good credit score will get you a good loan which will, of course, increase your budget. Before planning to get mortgages and even before applying for it, there are a few things that you should be informed about. Here are the most important things that you must know about home mortgages.
Special Mortgage Programs
Different government and lender mortgage programs are available that you may qualify for. Talk to your lender about Federal Housing Administration (FHA) and Veteran Affairs (VA) loans to see if you qualify for the same. These programs have opportunities that aren't otherwise provided by a simple mortgage. If you are a first-time home buyer, check for special mortgage facilities available for you. Mortgage for first-time home buyers may include small down payment, subsidized interest rates, and grants available differing from lender to lender.
Credit Cards Affect Your Borrowing Limit
Even if you don't have any outstanding payment to be made from your credit card, the mere ownership of credit cards can reduce your mortgage borrowing limit. This is because credit cards are also considered as debt by several mortgage lenders. They take into account that you will have to make monthly payments to your credit card too.
Maternity Income May Not be Counted
If you are married and if your spouse isn't working, getting a mortgage can get difficult for you. And if you or your partner is on maternity leave, it can get even more difficult. The reason is that most mortgage lenders don't include maternity income into the mortgage calculation. They only consider the income of the working partner and provide mortgage after determining if you can actually afford it. Hence, if you think you will be able to afford a mortgage keeping the maternity income in mind, it isn't necessary that the lender will agree too.
Buying a home can be one of the biggest decisions of your life. Hence, make sure you go through various homes for sale in Edmonton to find that best one. Also, get well-versed with mortgage and loan processes to avoid any last-minute back-breaking. For any assistance related to buying your home, you can hire our experienced real estate agents. From home-hunting to signing the final documents, our experts will be right with you to make the process simpler and quicker.