For the majority of people, buying a house is perhaps the costliest and the most well-thought-out investment one has to make in one’s lifetime. This would entail that you have a mortgage rate that is conducive to your budget and your concerns.
There is a spectrum of mortgage loans and companies that offer a range of interests rates. In this scenario, it can get a little daunting to settle down on the deal you think would be the best for your purposes, especially if you are a first-time homebuyer. Additionally, we find a market full of mortgage companies that always seem to claim to offer us the best deals. It is imperative to know how to navigate through this crowd to arrive at a company that will best serve your needs.
Enumerated below are a few guidelines that will ensure that you get the lowest interest rates from a reliable mortgage company.
Inspect Many Lenders
However easy it might seem for you to apply for a loan at the bank you usually rely on for your daily transactions, it is advisable that you step out of this comfort zone to scan through the other available options. For this purpose, you could depend on the recommendations furnished by your family and friends who have had an experience in dealing with mortgage rates. Nevertheless, do not accept these recommendations as the final word. Make sure that you also look into the portfolios of a multitude of lenders, inclusive of bank lenders, direct lenders, mortgage lenders, credit unions, and the like. This would enable you to diversify your options to select the lowest interest rates, suitable contracts, closing costs, and fixed or adjustable mortgages.
Usually, banks and lenders will concentrate their attention your debt-income ratio. This would be a crucial determinant of your control over the deal. Ideally, it has been estimated that a debt-to-income ratio of thirty per cent or lower has better chances with mortgage lenders. If you are a potential buyer, it is expected that you would have paid off the majority of your debts before the initiation of your mortgage application.
Increase Your Down Payment
There is an amount of down payment that is expected from you by any lender. This down payment, which is heavily dependent on the lender themselves, could be levied anywhere from three to twenty per cent.
Generally, buyers who are willing to pay more than the initial down payment are in a position to benefit from a comparatively lower interest rate. This is because the lender would be receiving a greater sum of money as upfront payment, and by extension, you would not be perceived as a detrimental investment, even if there is a situation where the property value decreases after the closing.
If you are on the lookout for the lowest mortgage rates in BC, you can solicit the services of Super Rates for the best deals to secure the home of your dreams.