Look deep into nature, and then you will understand everything better.

Albert Einstein

Are You Employed?

It’s an obvious one. Tenants that are stably and gainfully employed have the best chance of fulfilling a landlord’s number one need: having the rent paid in full and on time. The best tenants will be secure in their employment, and earning enough to comfortably afford the rent – even in the event of unforeseen costs. If you are a student, you will have to show proof of how you intend to pay your rent. Some landlords may prefer a student who has their parents paying rent over a recent graduate with an unstable employment situation.

Are You Single or a Couple?

If you are part of a couple where you are both employed, that means two income streams to rely on to pay the rent. However, having two tenants may increase costs may be included in your rent, such as water and power usage. How long you’ve been together may also factor into the decision. Couples that have been together consistently over a longer period of time are seen as more stable and less likely to have to end their lease due to a break up. For a young couple that is moving in together for the first time, that risk may be perceived to be higher.

Are You A Pet Owner?

While many pet owners like to think their animal would never be any trouble, many landlords simply will not rent to people with pets. For responsible owners with well-trained animals, this is an unfortunate reality. Concerns your prospective landlord might have include damage to the unit, allergy concerns (in shared space), the safety of other tenants in the building, and noise complaints.

No matter what, be honest on your application and with your potential landlord. Lying about having a pet, your need to practice the drums or how many people will be living there will only hurt you in the long run.

Not doing the hard yards – the temptation is to cut corners on your research because you’re sick and tired of giving up your weekends looking at property but this is likely to be one of the biggest financial decisions you’ll ever make so you want to get it right! The better you know the area, the better you will become familiar with prices and importantly you’ll know how to spot great value when you see it!
5Forgetting about buying costs – remember to add stamp duty and settlement costs into the mix. This is usually up to an additional 5% on top of the purchase price that needs to be factored in when setting your budget.

Not Knowing Your Real Rates

When you’re looking at rates, make sure you’re comparing your APR (annual percentage rate) to know what your true rate will be. Check out our website to see a comparison of rates from various lenders to see which lender offers you the best rate.

Choosing the Wrong Loan Type

After you figured out you want to refinance, take time to establish what your objective is. Do you want to lower your overall payment regardless of the length of the loan? Do you want to be debt-free by a certain year? Consider the cost of the refinance in comparison to the financial benefits – is it worth it? Once you’ve answered these questions, talk to one of our loan officers to hear what type of loan will help you accomplish your goals.

Not Keeping Up With Your Borrower Responsibilities

As your lender, you rely heavily on us; however there are some obligations you have to take care of on your own. Make sure you have decent credit and avoid taking on any more debt, even after the refinance has been approved. Also, to make sure you get that low rate you worked so hard to find, check your lock-in dates so that you secure that interest rate, and make sure you turn in all documentation that’s needed as soon as it’s requested so you don’t delay your closing date, jeopardizing your interest rate.

Taking Charge in a Bidding War

There is another scenario that I despise, but unfortunately it happens: the seller has a number of offers on the table, and decides to send them all back for improvement. Personally, I think they should just choose the best one and accept it or work with it. In the case where you are sent back to improve, you have control and choices. The seller is actually at risk if the offer is signed back to you and a higher figure is requested. You can simply walk away from the deal, as you are not obligated to increase your money or change any terms of the agreement. You can resubmit your offer as is, or you can make some improvements to the offer by way of increasing the money or removing a condition or changing any term on the contract that the seller wasn’t happy about.

Just remember, although emotions run high and it’s not the most fun scenario for buyers, you should keep your head about you, and understand that you are always in control.

Mat Jefferson:

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