Want a Good Mortgage? Plan for Minimal Debt

You’re finally at the point in your life where you’re ready to buy a home. This is an exciting and important time filled with plenty of ups and downs. It’s no secret that buying a home is a huge commitment and with a difficult housing marketplace out there, it’s important to set financial boundaries and be realistic with what you can afford. Like most home buyers, you’ll probably get a mortgage to pay for your new home, which means it’s important to get the best mortgage interest rate possible.

Even a small decrease in your mortgage interest rate can amount to hundreds of thousands of dollars over the course of your loan, so it’s a major point in planning for your home. If you’re already handling debt and it’s seeming like you might never be able to move towards a good mortgage rate, then you should enlist the help of Licensed Insolvency Trustees (also known as bankruptcy trustees) at David Sklar & Associates to help you erase your debt and plan to build your wealth. You need to know what your options are to manage the debt you already have in order to move forward and realize your dream of homeownership. 

Should I Be Debt Free?

Everyone has their own beliefs when it comes to what relationship you should have with debt and credit. Some people strive to be debt free, though this isn’t always the best way to build a strong financial profile. You need to be able to manage your debt properly, make regular payments, and meet your financial obligations in order to prove you have good credit. Being debt free might not help you build the robust credit profile you need to secure a good mortgage rate, it’s just when your debt has gotten too difficult to manage that you should take action.  

How to Get the Best Mortgage Rate

A home is the most expensive thing you will buy in your lifetime, so getting the best possible deal on your mortgage is incredibly important. You should treat this like any other major purchase: shop around, compare, ask questions, and do your research. You can visit mortgage rate comparison sites to see what different mortgage rates are out there.

To build a strong financial profile and get the best mortgage rate for your home, here are some tips:

  • Improve your credit score
  • Lower your debt-to-income ratio
  • Have a steady record of employment
  • Have as much cash as possible for your down payment
  • Have cash reserves set aside
  • Act quickly once you’ve found the right one

Seek Help from Licensed Trustees

If your debts as they stand do not exceed $250,000 and you have the ability to make regular payments, then getting rid of your debt via a consumer proposal might just be the thing you need to get back on track towards healthy credit and financial freedom. Licensed trustees can help you set up your proposal as well as evaluate your situation to discuss all of your options so you only go with the best solution. From there, you can move towards home ownership and a good mortgage.

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