Ontario is full of mortgage brokers. How can you pick the best one for you? What do you need to know before you even start your search? Whether you’re looking for a lender in Milton or a mortgage agent Burlington, here are just three tips for understanding the process.
1: Examine Your Finances
Before you start working out a budget for your mortgage payments, make sure that you’ll qualify for your desired loan in the first place. Most brokers want a debt-to-income ratio (DTI) of under 40 percent; some are even stricter with limits of 35 percent or lower. If your DTI isn’t the best, it may be worth the effort to improve it before applying for your loan. The better your DTI, the lower your overall costs.
2: Know Your Credit Score
Your credit score can have a significant impact on things like down payments and interest rates. Send away for a copy of your credit report to know where you stand and how you can work it to your advantage. Again, if the numbers could use some polishing, you might want to hold off on your mortgage until you can improve them.
3: Stay Local
If you’re a Burlington resident, look for a Burlington mortgage broker. In addition to keeping costs low, if you ever have any questions or problems with your loan, you’ll be able to speak with them face-to-face instead of over the phone or through a website. It’s this kind of neighborhood service that you want in someone so closely tied to your finances.