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Secrets & Tips for a Happier Family

Buying a house is not only a difficult decision, but also a life time investment, which is why you should pay a lot of attention when choosing your future home and also the banks or financial institutions you will collaborate with. Even if it is not your first purchase and you have done this before, the real estate market is an extremely dynamic field and many things may have changed, so you should make your homework, in order to know what to expect. There are many financial terms and concepts that you may not be familiar with, such as the credit score requirement and lowest mortgage rates in Ottawa. Even if you think you know a little something, there is always place for better, so it is recommended to collaborate with a professional of the mortgage and real estate market.

To begin with, you should calculate your credit score, which is synonym to the risk a bank, mortgage or other financial institution runs when they collaborate with you, and is calculated taking into consideration your income and other financial aspects. If you have a higher credit score, that means that your monthly payments will be lower. Once this rate is calculated, you will know what type of house you can afford to buy, because the purchase has to be financially comfortable. Even if you used to have higher expectations and now you realize you will not be able to meet them, just remember that you have to buy the house that you can afford, unless you want to regret a poor decision years from now. You should keep it real, and base your finances on a realistic debt-to-income ratio: normally, the money you will have to pay should not exceed 28% of your monthly income. This ratio has been calculated by financial professionals who consider it is the “healthiest” formula for an ordinary family which also wants to maintain a decent standard of living. However, you should choose a safe option, to avoid unpleasant surprises in the upcoming years, and make the final decision before you sign the mortgage papers. There are also some other costs you should keep in mind, because they may change a bit your initial calculations, such as taxes, utilities or insurance.

As far as financial security is concerned, even in you make a big investment, most experts recommend you to strive and build a saving account. Increasing savings could be the best manner in which you can obtain a higher credit, because the financial institution offering it is also interested in your payment resources. For this reason, a reserve account can make you a better candidate, because it proves that in case you lose your job, for example, you can still pay your debts. As soon as you know for sure that you have been accepted by the mortgage broker, start looking for the dream house, and make sure you choose something suitable not only to your budget, but also to the personality of your family.

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