Moving forward with your plans for a brighter financial stretch this 2016 – one avenue you may want to pursue is to look at securing a new mortgage. Whether you are interested in obtaining your very first mortgage or refinancing one at this point in your life, an ideal part of this process can involve learning how to find the most favourable mortgage terms available to you.
To help get you on your way – here are 3 tips for finding the best mortgage in 2016.
1. Choose the Right Mortgage Broker
As you can see, the first tip involves seeking out the help of a mortgage broker. There is of course a bit more to it, as there are so many brokers out there offering their services. So with that being said, you may want to look for a mortgage broker that specializes in assisting individuals with bad credit secure the mortgages they need. If you do have a lower credit score, then brokers can connect you with a lender who will work with you – versus end up denying you mortgage as a result of having bad credit.
Mortgage brokers will also help you prepare for the mortgage process, which will include performing such legwork as producing the necessary paper work and making sure you have the correct information that will improve help your opportunities for the best loan possible.
Since brokering mortgages is their speciality after all, let them guide you towards the best mortgage for your given situation – and then rest assured that they have your back throughout this process.
2. Save for a Larger Down Payment
Another helpful tip that can play a role in assisting you acquire the best mortgage you possibly can is to taking steps to make a sizeable down payment. While securing a mortgage with bad credit doesn’t have to be an impossibility – it is however still realistic to keep in mind that you are not likely to have access to the lowest interest rates available – and those that individuals with good credit applications are likely to secure.
Regardless of good or bad credit, one method of assisting individuals manage their home loans is to make as large of a down payment as possible. This action can make the approval process transpire much more smoothly, as it demonstrates to lenders that you have the ability to save money and furthermore it ultimately sheds light on your reliability as a borrower.
With bad credit, you should look to make a down payment of at least 15 – 20%, compared to those with stronger credit scores who are likely to be approved with a down payment in approximately the 10% range.
In the long run, the more you pay up front towards your mortgage, the lower your total loan balance will be and in the likelihood that you are going to have to pay a higher interest rate – this can mean that on the whole you can reduce the amount of interest charges over the course of your loan term. When you put all of this information together what do you get?? . .. a better overall mortgage – and after all is that the goal??
3. Provide Proof of Sufficient Income
If you also want to walk away with the best mortgage you can in 2016, this final tip can help you do just that. For anyone who is applying for a mortgage, lenders will require that you can prove that you are earning enough income to be able to repay the money you will be borrowing.
Before you even go in to meet with a lender, you should gather your income statements for the previous months you have worked, with of course will reveal how much you have been earning. Entering into this process in this manner also demonstrates your preparedness and commitment to being a responsible mortgage borrower.
Once again, a mortgage broker can also assist you in preparing for this process – they will encourage you to get these important documents in place as well as guide you towards all other avenues of ‘bulking up’ your loan application, thus getting you one step closer to a more pleasing mortgage.
In conclusion . . .
If bad credit has been a reality for you as of late, do not fret – a suitable mortgage can still be in your future. However, that being said you can make things a little bit easier on yourself by making sure to have some strategies that will help you achieve this goal more effectively.
To add even more weight your approach, you can contact a mortgage broker – one who is knowledgeable in bad credit loans as they are more likely to have existing partnerships with mortgage lenders who can and will grant bad credit borrowers with the home loans they require.
All in all, make 2016 the year you can take action with regards to your plans for successfully obtaining your home loan – with a little bit extra initiative on your part this CAN be your reality – and even much sooner than you might think.
