As the economy seems to rebound into a more stable position than before, it might be time to consider purchasing your dream home. But, make sure you think about whether or not it is time for you by considering external factors such as competitive pricing and low-interest rates. Below are some signs it might be time to make your Toronto real estate purchase:
You are Free of Debt
You have fully paid all your outstanding care payment and credit card debt. Thus, you do not have extra bills which eat up a big chunk of your funds every month. This means you now have money available to pay for a mortgage. Having the extra cash flow will also ensure you can cover other expenses associated with homeownership like property tax, maintenance, homeowners’ insurance, furnishings.
You Have a Steady Job
Having a steady job ensures you have a steady income that you will need for paying a mortgage. The more employment years you have under your belt, the more likely lenders will consider you as a loan-worthy borrower. Your employment status will give you a good backup when trying to take out a mortgage loan to buy your dream home from MLS Brampton.
You Have a High Credit Score
After paying off your debt and watching your credit report, your credit score has improved to help you get a more ideal interest rate. Your ability to qualify for a better rate will let you enjoy a lower monthly mortgage payment. In turn, this makes the option to own a home an affordable prospect.
You Got a Raise
A higher income can offer you the opportunity to have more funds available to pay off your debt as soon as you can. The extra income or your current raise eliminates the financial vulnerability you may have placed yourself in, otherwise.
You Have Saved Enough Down Payment
Having a minimum of 10% down payment saved outside of your savings and emergency funds may make you ready to purchase a home. But, you can put more down payments such as 20% so you can avoid the private mortgage insurance (PMI) requirements. The more down payments you can put, the lower your monthly mortgage payment will be. In the long run, this will set you up for a stronger financial position.