We will go over this in detail when you talk to us as all lenders want only qualified clients. Besides having at least the 5% down payment, you will need your closing costs for legal fees, disbursements etc. Use 1.5% of the house value as this is the estimated percentage that the lenders will use. For a $300,000.00 home this means you need another $4,500.00 in savings along with your down payment to qualify.
You need to verify that you have these amounts saved or gifted to you from family members to the lenders.
You will need to verify to the lenders that your income is enough to qualify. Lenders basically will allow anywhere from 35%-39% of your gross income(s) for your mortgage and property tax payments as well as heating costs. This is called Gross Debt Servicing, (GDS). As for other payments, (credit cards, car loan, etc.), lenders will expect that number to be in the 42%-44% range, this is called the Total Debt Servicing or (TDS)
Not only will we provide you with lower rates than your banker, we will also go through the pros and cons of the different mortgage products. This is important because you may not want a collateral mortgage that the majority of the large banks are pushing these days. For more information about collateral mortgages, go to our Blog: Pitfalls of Collateral Mortgages. Better yet call us now at 613-563-3447.