Buying your own home, is more than just what you buy made of concrete or wood? It is more like a dream come true moment for an individual’s life. Despite the generation, buying a new home that belongs to you in Canada has always been a priority of every Canadian citizen but things aren’t as simple as going in a market, select a home and pay for it and that’s it, you are a homeowner now. It is a life-changing decision that can either remake it or break it. So just when you think that you are ready to buy your new home in Canada and it is your first time then you will need to consider several things. If this is also your first time then continue reading the following for a better idea.
What Do You Have For Down Payment?
First, you should start with the down payment. If you don’t know, the “down payment” is the amount of money you put aside to buy your new home. In simple words, the more down payments you have the more chances you have to buy a new home. Having a down payment in your hand will make you a little closer to buy your new home. Don’t worry if you haven’t started to save for a down payment. You will need to have an immediate down payment to buy a new home but yes you will need it to fulfill your financial needs. This simply means that you should have some space to save from your budget every month.
Have a Stable Income
The feeling of owning a home is just awesome but what you are missing is the fact that you will need to be ready for other responsibilities as well which include bills and house maintenance expenses that you will need to take a look at every month. Now you will be responsible to have your leaking roofs and broken switches repaired instead of calling your landlord, this is why you will need to have a stable income to manage your expenses after buying a home. Also, you can qualify for a steady income as well with a steady income and you can have a better credit score as well. However, if you are self-employed then house buying can be a complicated process so it is better to speak with your mortgage broker about the whole process and any necessary information.
Check Your Finances
Before you start looking for real estate listings, you should also be looking at your current financial situation. Having an idea about how much you have to spend will help you to know how much you can afford to buy and along with this, you should also organize your documents as well before the whole process starts.
It is always advised that you should pay off your debt if you have it on your credit card from student loan to debt or car loan. If you haven’t paid it then it is time to pay it now. You will have a much better credit score when you have little to no debt to pay. Also, it will help your lender to find your debt service ratio that will determine that how much he should lend you. So when you have low debt, the more comfortable the lender will be to pay you.
Look Around For a Great Rate
Just like your car insurance where you will want to get the best insurance rate then why should you compromise on the mortgage rate? It is recommended that you should look for the most affordable mortgage rate that you can pay peacefully during the life span of the mortgage. If you have no idea about finding the right mortgage then you can take help from the mortgage broker as well. Not only he will help you to fill the application but he can help you find the right mortgage rate as well which will cost you less and save you thousands. Even though they may not always provide an idle mortgage rat but they will provide you advice on several occasions that will at least cost you nothing.
Get a Mortgage Pre-Approval
Once you organized your finance and documentation the very next thing would be getting pre-approved for the mortgage. Getting a mortgage pre-approval is a way to get crucial information about how much you can spend on a house, the amount of mortgage that you will have to pay monthly, the available interest rate for the mortgage, and this information will help you to determine your maximum purchase price. If you are ok with the mortgage rate and lender then you can lock the mortgage rate up to 160 days. Locking the mortgage rate will make sure that if the rate rises, it will not affect your mortgage rate and if the mortgage rate gets lower, the lender will approve it.
Finding the Home
- Once everything is done, now is the time to look for the home of your dream. There are several ways to find a home that suits you most such as:
- Contacting a real estate agent with knowledge about the types of homes you have been looking for.
- Making a list of feature that you think “should have” and “good to have” features this will assure you that you are flexible in your choice as well.
- Instead of telling each time that you are buying a home for the first time, rely on the information provided by your real estate agent.
- Do thorough research about your ideal house in the market to make sure that the home pricing and your purchase pricing are in sync.
- Prepare yourself o move into the house quickly.
Though you may found this whole guide a little exhaustive but buying a home is a lifetime experience so you shouldn’t be left anything behind that will make this experience more of a hassle rather than great.