Do you advise a lock-in on a Lethbridge home loan?Locking in a mortgage rate with a lender is one way to ensure that same rate still will be available when you need it.
Lock-ins make sense when borrowers expect rates to rise during the next 30 to 60 days, which is the usual length of time lock-ins are available.
A lock-in given at the time of application is useful because it may take the lender several weeks or longer to prepare a loan application (though automated loan practices are cutting this time dramatically).
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Contact Information
Courtney Atkinson Century 21 Foothills - Atkinson & Associates 204 - 515 7 St S Lethbridge, AB, T1J 2G8
Cell: 403.795.7777
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Providing valuable resources for our Lethbridge Real Estate Buyers and Sellers is our top priority.
Now that you have made the decision to buy, it is important to figure out what you can buy.
Lenders will look at your current budget (income, assets, and debts), and how much you would like to down pay and calculate two ratios to determine how much they are willing to lend. The first ratio sets a limit on what they think you can spend on housing.
For example, a 28% housing ratio means your
projected housing cost should be less than 28% of your gross monthly
income. These numbers are all flexible depending on your down payment.
Generally, the bigger your down payment, the less your monthly payment
will be. People can usually afford a house 2.5-3 times their gross
annual income. The second ratio compares monthly debt obligations to
monthly income.
After all this is calculated, you can get pre-approved for a loan. This
will tell you officially how much you can afford and what your monthly
payments will be. Also, this tells the seller you can afford to buy
their home. Often buyers can use their pre-approved status as leverage
during negotiations.
Questions about Lethbridge Real Estate?
Ask us below or Call us Now at 403.795.7777
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