Are You Stressed About the New Stress Test? There’s No Need to Be!
Are you stressed about the new stress test? There’s no need to be! You heard right, don’t be.
Sure the new mortgage rules from our Federal Government effective October 17th can be a bit confusing, but, here are five tips to help you with your mortgage while at the same time, reducing your stress.
Review your Credit File
Good credit is your ticket to informed borrowing and purchasing, great rates and, most important, approval.
Don’t be vulnerable. Understand how a good credit score happens, and how best to manage credit so that you can use it to your advantage.
Make sure all your information is true, complete and up-to-date. If there are discrepancies deal with them before you start the buying process.
Review your Debts
Understand the difference between secured and unsecured debt:
Secured debt is money owed for the purchase of an asset, such as a car, boat, motorcycle or property. The asset is collateral, and if you don’t repay the loan as specified by the terms, your creditors can confiscate it.
Unsecured debt is largely due to credit cards. These typically have a higher interest rate, so you should always try to pay them off first.
Anyone can have credit difficulties if they don’t understand how and when to use it. On the other hand, credit can be a great advantage if you know how it works.
Make payments on time, and in the case of a credit cards clear the balance every month.
Establish and implement a debt repayment strategy.
You may also need a down payment saving strategy. This will help you avoid extra fees, such as mortgage insurance premiums, and ensure that you stay within the guidelines of the percentage of debt allowed against your income.
So, save, save, SAVE!
Help from Mom, Dad or other Fans
Though you may not be so sure, they actually do love you.
Suppose you have great credit, a down payment and a good job. You want to start your family, but are a little short of being approved for a loan. That could be the time to reach out to Mom, Dad or others. I usually suggest taking on debt singlehandedly, but there’s nothing wrong with asking for a little help now and then.
Patience is key. To paraphrase an old adage: Patience and practice makes for a perfect outcome. So, practice patience, and make your purchase a perfect performance.
Call or email me
I will be able to help you navigate through these new mortgage rules. I have access to many different lenders and products and depending on your personal financial situation I will be able to pair you up with the best product available based on your situation. As your mortgage broker I am here to get you on the right path to financial freedom. Your business and your referrals are much appreciated, so please feel free to forward this email or my contact information to anyone who may benefit from the information on the new mortgage rules or require my services in attaining a mortgage.