Purchasing a home is the largest investment a person will make in their lifetime. There is a very small percentage of people who will be able to purchase a home without a financing option. Qualifying for a mortgage becomes increasingly important when looking to purchase a home in a Canadian community like Pickering. But with some unique circumstances, qualifying for a loan with one of the traditional big banks may pose a challenge. These financial institutions have very specific qualifications they are looking for: employment status, income, credit history, and more. A slight blemish on any of these points can have a detrimental effect on qualifying for a mortgage in Pickering.

 

 

Canadians have heard of private mortgages, but are unsure or wary of moving forward with them. Private mortgages provide a great alternative to homeowners looking for alternative financing options. Simply put, a private mortgage is financed through a group of investors instead of a bank. The lending process is a little more flexible, although interest rates may be slightly higher. Private mortgages have many advantages for those looking to refinance their loans. Employment situations may change and now those who once worked with others have become self-employed and may have difficulty proving their income. Traditional lenders are wary of financing self-employed people, especially if income hasn’t been guaranteed for at least two years.

 

Financial status will also play a part in qualifying for a loan financed by one of the top banks. Those recovering from debt consolidation or bankruptcy will find it much more difficult to secure a mortgage through traditional channels. Going through a private investor to finance a loan will empower those who have faced financial struggle to recover from debt and poor credit ratings. This will help them to rebuild credit and give them an opportunity in the future to borrow under more traditional methods.

 

 

Home equity is going to be a major factor in qualifying for a private mortgage in Pickering. The amount of money you will be approved for will be dependent on the amount of equity you have built in your home. Equity is the difference between what your home is worth and the amount still owing on your home. The higher the equity, the more financial support will be available to you. Equity is also dependent on the market value of your home. If the value of your home continues to increase and you have paid off at least twenty percent of your original mortgage, you likely will qualify for a loan financed by independent investors.

 

When choosing a private lender, it is very important to do your research. The best course of action is to choose an accredited brokerage that can partner you with the right investors and mortgage products to suit your financial needs. Accredited firms will act on behalf of their clients and present the best options to you. Many people choose advisors and mortgage brokers who are familiar with their community and the market. Pickering residents should align themselves with someone who has experience dealing with mortgages and the market. They will have the answers to specific questions as they pertain to lending and borrowing in that community. Factors such as market rates, property taxes, and home value will all have an impact on the amount needed for financing.