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What to Do Before Obtaining Ottawa Mortgages

Ottawa mortgagesBefore being approved for Ottawa mortgages there are several things a couple or individual should do beforehand. A mortgage isn’t as easy to attain since the housing bubble, so being prepared before stepping into the bank will help you obtain that mortgage much easier. Banks are looking at stability in many different facets of your life. They like to see that jobs and credit are stable within your life. Any sign of instability could be a red flag that may cause them to turn you down for Ottawa mortgages. You want the bank to see you as a low risk client, that you can handle the payments of a long range loan.

A home mortgage is one of the largest loans you will take out in your life so the bank has to look at all areas of your life, including how long you have been at your present job, the pay scale, and your past credit history. Job stability does not necessarily mean you have to be at the same job for five to ten years. If a mortgage lender can see that the reason you have switched jobs several times is because of an advancement or more pay, they can determine that you moved on for career advancement. However a mortgage company may like to see that you have been at your present job for a certain amount of time. Three months at a new job may not be long enough to ensure stability, so you may want to wait till after six months at a new job to seek a mortgage loan.

Your recent credit history should be in the good range as well. Creditors will look closely at how well you paid past loans and bills. Your credit history report will tell them if you were ever late with a payment or if you defaulted on a loan. A bankruptcy filing is normally on your record for seven years. If you were late with a few utility payments it shouldn’t impact your chance of getting Ottawa mortgages, but if the lender sees a pattern of not paying or a bankruptcy it could mean they consider you high risk. The higher credit risk you are the less chance they will take at giving you a loan. If you have had bad credit in the past the best thing you can do before asking for a home loan is to rectify your bad credit rating.

If your credit score is very low it may take a period of time to get it back up to a good range. The credit bureaus need to see you are paying your bills on time. If you can take out a small loan, such as for 6 months same as cash, the credit bureaus can see that you can pay back a loan. As they see you improve on your bill and loan payments, your credit score will rise also. Once your score rises and you have given it some time since your bad credit experience, Ottawa mortgages may be more receptive to giving you a home loan.

One other factor to getting a home mortgage is not trying to purchase a home that is beyond your means. A small starter home when first starting out is better than trying to afford a home where you are strapped with home loan payments. Most banks will only approve you for so much to keep a person from taking on too much debt. Even then, you may not want to take out the full amount the bank is offering. Make sure you can handle the monthly payments so you won’t find yourself in a tight money situation.

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