Shop the best mortgage deals in Canada. approvU allows you to comparison-shop for the lowest rate mortgage deals across 25+ lenders and brands in Canada.
It’s only natural to feel overwhelmed making decisions that could change your life – buying your first house.
However, It’s shouldn’t be a bonus to enjoy a smooth home-buying ride. You deserve it.
The five tips in this quick house buying guide for first-time homebuyers will give you a smooth ride to homeownership.
It is essential to get pre-approved for a mortgage before starting house shopping.
The last thing you want is to fall in love with a house that you end up unable to afford because you can’t get qualified for enough money to buy it.
Real estate agents want you to get pre-approved before going on house tours.
A pre-approval letter will state the maximum amount you can afford at your current income and credit levels.
Note that the pre-approval letter is not a guarantee of a mortgage loan. It’s an assurance that the bank is willing to consider you for a mortgage. You’ll still need to be qualified for the mortgage by fulfilling the lender’s funding conditions.
Also, your real estate agent needs your mortgage pre-approval letter to know the maximum house price to search for you.
Mortgage professionals (a bank’s mortgage specialist, a mortgage broker, or a mortgage agent) can help you get pre-approved for a mortgage.
Your credit record, income, and down payment are factors for a pre-approval mortgage loan.
See Your Personalized Mortgages Online With approvU
Working with a real estate agent is not required; however, it’s highly recommended, especially for first-time homebuyers.
Expert advice and guidance are always necessary when venturing into something new, like buying your first home.
Trust me. You’ll have a lot of questions to ask. Your real estate agent is the right one to answer those questions.
In addition to giving advice, a real estate agent is likely to have a broad network of other professionals (house inspectors, mortgage insurers, mortgage brokers, and house appraisal agents) you need for a smooth house buying experience.
Buying your first house comes down to your budget.
How much have you set aside for the required down payment?
How much will you spend monthly on the mortgage while maintaining or improving your current lifestyle?
Even if you are sure to be pre-approved for a mortgage and can afford a home, it still doesn’t hurt to have a written budget plan.
Your lifestyle can impact the budget that you have for your home. A mortgage comes with required monthly payments, which might mean cutting out that weekly dinner with your friends. Budgeting can help uncover things like this.
Realtors and financial experts suggest you ask yourself if you could still afford your mortgage if you lost your job and didn’t work for three months.
It doesn’t hurt to wish for a million-dollar property for your first home.
Only if you can afford it.
What can’t you afford but you love the million-dollar houses?
Keep an open mind.
That is essential.
Right now, you may not be able to afford the million-dollar house you so wish to have, but with planning and an open mind, it will someday be yours.
Your first home might need to be a fixer-upper and have awful wallpaper. The critical thing to remember is that it can all be changed, and the fundamentals are already there.
Do you have enough money to cover the mortgage closing costs?
In addition to the down payment, other fees come with buying a house.
How much you need to close the purchase will vary based on where you buy in Canada.
Lawyer fees, appraisal fees, transfer tax, and title registry fees are a few examples of closing costs.
In addition to your down payment, the general rule for closing costs is 1.5% of the house’s value.
Let’s say the house costs $350,000.00. In addition to the down payment, your bank will validate that you have $5,250.00 to cover the closing costs.
Also, consider putting aside extra money for a rainy-day fund. When you own a home, you never know when something will break down.
Although a lot of stress can be involved in buying your first home, there is a lot of excitement.
By following these simple house buying tips and guidelines for first-time home buyers, you can have a smooth experience with your purchase.
Be smart, be logical, and enjoy the first significant purchase of your life.
What would you recommend for first-time homebuyers?