Very often, households cannot self-finance the acquisition of real estate. They then use a mortgage, in order to spread the payment of said property over many years. But then, how can you best prepare your mortgage loan file?
Clean up personal cash flow
Before even claiming a mortgage, it is very important to take stock of your cash flow. Indeed, we must not forget that banks are very picky about the creditworthiness of their borrowers.
So there is no doubt that she will look at the bank account statements first. One thing is certain: a borrower who is often in the red will have little chance of having his mortgage granted.
We must therefore ensure that we achieve a slight savings each month, however small it may be. This attests to your maturity in terms of financial management, which tends to reassure banking establishments.
Plan a personal contribution
The other way to reassure the bank about your willingness to repay your mortgage is through personal contributions.
This is an amount that you agree to pay, to start the loan repayment immediately. For example, a borrower who claims to 250,000 dollars and who concedes to 20% of personal contribution already undertakes to pay 50,000 dollars in the framework of the mortgage.
Banks see this personal contribution as an important indicator of confidence, since borrowers rarely backtrack on repayment of a loan when they have already invested a large part of their own money.
As you will have understood, the greater the personal contribution, the more the bank is inclined to grant credit.
Using the services of a broker: good idea or not?
Even when you have all the assets in hand, banks may be reluctant to offer the best credit terms.
In these cases, it may be worthwhile to use the services of a mortgage broker. His job will then be to help you fine-tune your credit report, and to contact the various banks.
Thanks to his knowledge of the market and his close relationships with the various market players, the mortgage broker will be able to show you the best leads.
It is true that his remuneration will be added to the various costs associated with the mortgage, but at least you will be guaranteed to find the best credit conditions. It is well known however, a difference of one or two points on the credit interest rate is worth thousands of dollars!