As a first-time home buyer, submitting a mortgage application might seem like a massive and challenging task. And although though thorough research is essential for demystifying the procedure, it can be challenging to tell reality from fiction when rumors and scary stories start spreading!
In light of this, My First Home In Calgary®, the best mortgage company Calgary NE, would debunk five of the most widespread mortgage myths that first-time home purchasers frequently come across.
MYTH NO. 1: YOU WON’T BE APPROVED FOR A MORTGAGE IF YOU ARE SELF-EMPLOYED
If you operate as a freelancer or gig worker, getting a loan as a self-employed borrower may seem unattainable since it can be difficult to prove the fluctuating nature of your income.
Being self-employed does not always preclude you from receiving a mortgage approval, though. Alternative mortgage lenders provide products that are tailored to your particular needs. To decide which of their products is best for your requirements, these lenders analyze a wide range of revenue sources and supporting papers.
MYTH NO. 2: YOU WON’T BE ABLE TO GET A MORTGAGE IF YOU HAD A DIFFICULT PERIOD THAT HURT YOUR CREDIT
Unfortunately, life situations might occasionally damage your credit score. For instance, unpaid payments may occur while finances are being resolved following a divorce. Or adding extra costs after a loved one passes away suddenly might result in higher debt on your credit cards.
Although having a strong credit score is always a benefit, a reputable alternative lender considers your story’s circumstances in addition to your credit score when evaluating your application.
MYTH NO.3: IF YOU ARE NEW TO CANADA, YOU WILL NOT BE ABLE TO OBTAIN A MORTGAGE
This year, 411,000 immigrants are anticipated to enter Canada; each one of them needs a place to call home. But it might be challenging to obtain a house loan authorized if your credit is new.
Alternative lenders provide options for immigrants, while it is undoubtedly advantageous for newcomers to first establish their credit history in Canada. To provide a range of possibilities, these systems assess a borrower’s whole financial picture, considering elements like projected future earnings.
MYTH NO. 4: A MORTGAGE CAN BE PAID OFF IN A MAXIMUM OF 25 YEARS
The maximum amortization length for insured mortgages with down payments under 20% is 25 years, therefore there is some validity to this myth.
However, it may take longer to pay off uninsured mortgages with 20% or more in down payments. In actuality, the Home Trust Classic mortgage has an amortization duration of up to 30 years!
MYTH NO. 5: THE BEST PLACE TO OBTAIN A MORTGAGE IS WITH A BANK
The ideal mortgage lender actually relies on your individual situation. For some first-time homebuyers, a traditional mortgage from a bank is definitely the best choice. However, some purchasers might need to engage with a lender who takes into account more than just a good credit score or steady employment.
Only the best mortgage company Calgary NE will be able to put you in touch with a lender that can provide the best loan for your needs, such as the additional possibilities provided by My First Home In Calgary®.