GoodaleMiller Blog

Pertinent and insightful information on Oakville real estate as well as commentary on current events in our community.

: Why Some Homebuyers Can’t Get a Break on Interest Rates

Posted 2.25.13 @ 8:12 by: Mike McEwen

Here’s a hint – it’s not always because you have bad credit! If you’re self employed with your own business it can happen, if you are retired, work seasonally or just have an erratic job history (but an acceptable income) you could run into problems too. A high debt to income ratio can be a barrier to a low interest rate, and of course having bad credit never helps the situation. If you’re not looking at the right lender or in the right lender category you could fall into some trouble too. When it comes to luxury real estate, Oakville has a lot to offer – but you still need to know you have the right financing in place.

Self Employed or Erratic Job History

Do you have your own business, are self employed or have a less than traditional income? Maybe you work seasonally or have an erratic job history – all of these things can and will make it harder for you to buy luxury real estate. Oakville has so many great homes to buy, but almost every lender you’ll come across is going to want you to prove that you’re credit worthy. If you’re young or just don’t have much experience with credit, it might be worth it to get a cosigner that can help you build credit.

High Debt to Income Ratio

If you have too much debt compared with how much income you have coming in, you’re going to have trouble getting the credit you need to move forward. If you have alternate sources of income like a settlement, child support, alimony – anything that you receive regularly but doesn’t come with a check stub – you’re going to need to bring proof of it with you when you apply. The more financial records you have proving your income the better; don’t be afraid to ask what paperwork you need to show to get the credit you need to buy homes for sale.

Bad Credit

Bad credit can be a problem, but like someone with no credit you can always get a cosigner.

Bad Fit with Lender or Lending Program

If you’re applying to lenders or lending programs that don’t suit your needs, you’ll have a much harder time getting the credit you need to move forward. Don’t be afraid to work with mortgage brokers (but only if they have a good reputation!), private lenders and more. Conventional bankers are almost always the first and best choice, but your situation may be different. Get pre-approved before you start looking at Oakville real estate for sale; that way you know what your budget is and you can zero in on the home that’s right for you.

Getting financed is a difficult step, but finding the home that’s right for you can be even harder! If you want a home that suits all of your needs, give us a call today. When you choose the Goodale Miller team for your Oakville luxury real estate needs you’re be in the best hands.

Mike McEwen
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