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Your Trusted Mortgage Advisors

5 ways to improve mortgage qualifying success

Yes new mortgage rules have made it harder to qualify for a mortgage, whether you are a first-time buyer or looking to renew or refinance your mortgage with a new lender. That’s why you should get yourself mortgage ready well in advance. Here are 5 tips to help you do just that:

  1. Get your Credit Report. Getting a copy of your credit report will let you know how you will be viewed by lenders. You can order yours for free through the mail or for a small fee online at www.equifax.ca as well as www.transunion.ca If you spot a problem, call us for assistance to resolve the issue.
  2. Polish your Credit.You can boost your score by several points fairly quickly with continual good credit habits. Most importantly, pay your bills on time, every time. Don’t let your credit accounts exceed 50% of the credit available. Before you cancel any credit cards, get advice. And don’t apply for a store card just to save on your purchase that day. Make a habit of checking your credit score each year, and watch how those good credit habits push your credit score skywards!
  3. Cash is King. Plan to go into homeownership with the maximum downpayment possible. If you are in the "saving up" stage of preparing for homeownership, now is the time to meet. There are several downpayment savings strategies available that we can put to work for you.
  4. Get a boost from Family. Parents and grandparents have enjoyed the personal and financial benefits of home ownership themselves, and see how hard it is today to make that important first step into the market. Check to see if they are willing to help by gifting or loaning some or all of the downpayment, or by helping you with other debts.We can help you be fully prepared to get you where you want to go, and to make sure you can take advantage of any opportunities that come your way.
  5. Start a Dialogue early. Get in touch early to talk about your purchase, refinance or renewal plans. We can help you be fully prepared to get you where you want to go, and to make sure you can take advantage of any opportunities that come your way.

Also remember,history has proven that it is almost impossible to perfectly time the market.Home ownership has proven to be a very solid investment over the long term, so focus on buying a home when you are financially ready and when it fits your lifestyle.

Troy Resvick, MBI

Managing Partner / Senior Mortgage Advisor

Invis - Resvick & Associates Mortgage Advisors

T: 604.532.8769 ext. 1

What is the Difference Between a Home Equity Loan and Refinancing?
November 13, 2019 @ 6:30 PM by: Resvick & Associates

Though most people believe that their home is a great place to live, others see the value in owning a home. It can be a great investment. However, if you are strapped for cash, it can be a source of ready cash.

You may decide to look into a loan so you can get some cash easily, with a home equity loan or a cash-out refinance loan, though you may just want to refinance your home (to make your payments more bearable.) You need to do your research before you decide how you want to proceed.

What is a Home Equity Loan?

A home equity loan should be looked at as a second mortgage. If you need to borrow money to update your house or do some renovations, you may want to look into a home equity loan. You may also find it helpful if you want to pay off some of your debt (credit cards, car loan, etc.)

To see if you are eligible for a home equity loan, you need to see if you owe less on the home than it is worth. Even if it isn't close to being paid off, you may have a few thousand dollars of home equity.

So, Why Would You Want a Home Equity Loan?

Most people choose home equity loans because you can often get a very low-interest rate on them. It might be cheaper to get a home equity loan for your next car than going through the dealership. If you are paying off high-interest credit cards, three or four percent interest is a lot better. You may actually be able to pay it off sooner than you thought.

What Does It Mean to Refinance Your Home?

When you go to refinance your home, you are just going to pay off one loan with another. You are taking out a new mortgage loan, to cover your old one.

So, Why Would You Refinance Your Home?

There are several reasons why someone would want to refinance their home.

To make the payments easier. If you are able to get a better interest rate, you could really drop your monthly payments.

To change the terms of the loan. Other people decide that, instead of a thirty-year loan, they want to pay it off sooner. You can refinance your home into a new fifteen-year loan. Your monthly payments should be similar, though you will be able to pay your home off sooner, saving you some interest.

What is a Cash-Out Refinance?

For those people who want to refinance their home, but they also need cash, many lenders also offer a cash-out refinance loan. This allows you to refinance your mortgage and get some cash for different reasons. Your cash-out refinance loan will be more than your current mortgage, so that you can have some money to take care of different things.

So, Why Would You Do a Cash-Out Refinance Loan?

There are a few reasons why you might want to get one of these loans.

You can pay off your current mortgage (though you will have a new one)

You might be able to pay your home off quicker (or decrease your monthly payments)

You have some extra cash to help you pay off debts, do some house renovations, or even buy a large item (such as a car).

You only have one payment every month, instead of a mortgage, second mortgage, loans, and credit card bills.

How Should You Choose?

The best way to decide which is best for you is to speak to a professional. He or she can talk to you about your options and what your payments are going to look like so that you can make an informed decision that is going to work best for you.

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