Competition = Low Mortgage Rates

Things to Consider When Building a Brand New Home

If you decide to build a brand new home instead of purchasing a re-sale, it is extremely important to carefully assess the following pros and cons before purchasing:

• You are the first occupant meaning no one else has lived in the home
• You get to decorate as you wish by selecting your colors, design features, and other various upgrades
• You are protected from construction deficiencies by Provincial Law

• The area is not established and is often still under construction causing excess traffic, noise, dust, etc.
• Landscaping, driveway paving, and other finishing touches might take extended periods of time to have completed due to other construction in the area
• The timely completion and occupancy of your new home can be delayed for any number of builder related reasons
• There are some closing costs that apply to new homes

Should I Purchase a New Home or a Re-Sale?

First-time home buyers have many decisions to make after deciding to purchase a new home. These decisions can be overwhelming and even frustrating if they do not have all the facts.

A common question for many first-time home buyers is whether or not to build brand new or to purchase a re-sale. Let our professional mortgage brokers at Alberta Equity Mortgages ease your frustration by offering solid advice while providing both the pros and cons of building brand new or purchasing re-sale.

What is a Mortgage Broker?

A Mortgage Broker is a registered agent who works on behalf of a borrower to obtain the best possible mortgage option for that borrower's financial situation. The Mortgage broker is a skilled negotiator and deals directly with the lenders in both standard and non standard borrowing situations. They have access to lenders who may not advertise nationally or be readily available to the consumer so finding the best possible mortgage option holds true.

Can I Clean-up my Credit?

If your credit history is less than perfect, you should definitely take a few small steps to improve your credit standing before applying for a mortgage.

The following steps will help you get one step closer to cleaner credit and even closer to owning that new home:

• Pay off high-interest debt before you focus on saving a down payment because there are mortgage options that allow you to buy with little or no money down.
• Pay off credit cards and get rid of any unnecessary ones to avoid over spending and unwanted debt. Try to pay with cash and do not apply for anymore credit accounts.
• Try to pay down installment loans such as vehicle payments.
• Hire a credit counselor or seek advice on managing your debt.
• Wait at least six months before applying for a mortgage if you have made a late payment in the past.
• File a short explanation letter with your lender if your credit suffers from one specific event.

Shopping the banks for best rates might damage Your Credit Score!

Did you know that every time a lender checks your credit, it lowers your beacon score? So if you go to four or five banks, you just lowered your beacon score because each bank had to check your credit history.

The difference between having a mortgage broker shop for the best mortgage rates rather than you is that the mortgage broker only checks your credit history once.

Consider using a mortgage broker when shopping for the best deal. It costs nothing and it won't damage your credit score.