Not able to qualify for a traditional mortgage? A mortgage broker or mortgage agent can help:
There may come a time when your finances are not quite where they need to be to qualify for a traditional mortgage, however during this time you may want to buy a house, stop renting and start building home equity.
With financial challenges that can arise from a separation, starting a family, a change of employment or the tightening of the mortgage rules, as examples, this may make for a less favorable mortgage application.
Sadly, during these times, one can quickly see that their bank was there for them in the good times but will not be able to support or assist in the down times.
This is one of the many reasons to review your mortgage options with a mortgage broker. By having access to not only major banks, but trust companies, credit unions, private lenders and more, you may uncover an option that meets your current needs.
Alternative lenders may be able to provide a temporary solution for you while, for example, you are working towards two strong income years with self employment, or getting back on your feet after a bankruptcy.
With a typical one year term with an alternative lender, that will allow the flexibility to review your finances each year to see if moving back to a traditional lender is an option.
On a $300,000 house, with a 20% down payment, an example alternative lending mortgage payment over a traditional lender payment is approximately $95 a month higher. Although not ideal, if this allows you to stop paying rent, to take advantage of possible capital appreciation of your house and to gain equity from paying down your mortgage, an alternative lender option may be a good fit for you.
During this time, your mortgage broker can work with you and help set goals to get you on the right track towards a traditional lender mortgage.