It is expected that the number of buyers will increase in year 2017. Although one can make predictions about the coming year but you never know with mortgages.  They remain static in year 2016, grew after the US elections, but still they are low by standards. Whether they will rise or get low in year 2017 is a mystery yet. However, there are some tips that you can follow to purchase home or refinance your mortgage in year 2017.

Small Down Payment or No Payment at All

Every time people consider the idea of getting mortgage for home buying they have been told to save aside a huge amount for the down payment. Lenders on the other hand, say that they dispel the statement that borrowers need to pay huge amount of down payment to get the mortgage. You can get the mortgage without even paying down payment if you have good credit history. Some lenders offer mortgage programs that require you pay a little amount for down payment say 3% of the equity of your property.

Get a Loan with Low Credit Score

Borrowers have been told that they need to maintain a good credit score to approve their mortgage application. This idea will got null in year 2017, because borrowers with poor credit score will get the mortgage of their choice. They need to pay a down payment of 10% to approve their mortgage and they need to shop for lenders that would approve the loan.

Grow Your Savings

Lenders today do not require you to pay a huge down payment and lose all your savings. They want to you to keep some cash in your hands for other unexpected expenses. If you will pay huge down payment you will lose all your savings. Therefore it is important to keep aside some reserves.  Some lenders also calculate the amount you need to have in your reserves.

Borrow What You Can Pay Back

This is very important point that should be kept in mind when applying for mortgage. Always think wisely and go for a mortgage plan that you can pay back easily. You can move up to a more expensive house after (and not before) your income rises.

No Closing Cost Mortgage

Mortgages usually cost people thousands of dollars in form of mortgage fee, closing cost etc. In order to get low-interest rate mortgage people lose all of their savings. But it is better to get a mortgage with high interest rate in exchange for lender paying all of or some of your closing cost. However this option is more suitable for people who are going to sell their home within five years.

Once you keep all these points in your mind it will become easy for you to make a wise decision in future. In this time of need, Avon Financial is available to guide and help you throughout the mortgage process.

Contact us today:

info@avonfinancial.com
Ph:905-216-5563

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