Home buying has always been a tough decision to make. You can’t decide easily because one wrong move can affect your entire plan. Especially when you’re a first-time home buyer.
If you are unsure what to do because you’re one of the first-time home buyers in Canada, we got you. This blog will give tips on what you will do as a first-time homebuyer.
Tips for First-time Home buying:
Solid planning on how you will buy a home is very crucial. Planning includes the following;
Finding out what you can afford
Money is a sensitive yet crucial topic when it comes to your home buying. Can you afford this one in the long run? Think about the stability of your income. Is it a long-term source of income? If not, then maybe you are still getting ready for that home.
Building up your credit
Do you still have existing debts? Is your credit score high enough to get a better deal?
Your credit score is one of the most important things you need to consider before buying your home. It will determine how much will be your interest rate.
Dealing with your existing debts is one of the steps you need to take to build your credit. Make sure that you have a good and clean credit history. Remember, almost all mortgage lenders base your application on your credit score.
Down payment
The down payment is the upfront cash you partially pay on your mortgage. It means the higher your down payment, the lower your owed balance.
Saving up at least 20% of your down payment is advisable. If not, you might have to get mortgage insurance to protect lenders from defaults.
First-time home buyer down payment Ontario.
Decide what you are looking for.
What kind of house are you looking for? Where is the location? Are you staying here for many years?
Being decisive on your home purchase is a characteristic you need to develop. You cannot change your mind whenever you want because that is the home we are talking about.
Take your time deciding. Is this your final decision? If you can’t answer yourself or constantly change your mind, then the answer is No, and think about it again.
Get mortgage preapproval
A preapproval will be the estimated amount of your mortgage payments and interest. Getting your preapproval is like getting yourself ready, giving you an idea of how your mortgage will flow. After then, you can ask yourself, “can I afford this?”
Build up your own savings.
It is best for you to save as much as you can. It is not only a down payment that you need to pay upfront when applying for a mortgage; there are also other fees that you need to pay. E.g., Closing fee, broker fee, and lenders fee; there are also your moving expenses.
Financial budgeting helps you save as much money as you can. With a disciplined mind, you can save for your home in no time.
Get help from Realtor.
Getting help shopping for your new home gives you a better and smoother transaction. Choosing a real estate agent that is compatible with you is also a crucial decision. You need to get along with your Realtor because you’ll only get stressed out if not.
Stick to your budget
If you choose to get a house that is way beyond your budget, it could mess up your whole plan. You’ll have never-ending compromises in expenses just because you chose to go above your budget.
Sticking to your budget is the safest option to have enough funding.
Conclusion:
Buying a home takes a lot of courage because you’re investing in something big. You have to be dedicated to purchasing a home because if you only do that initially, there’s a bigger chance that the home you’re saving up for will be taken away from you.
Shopping for the best mortgage deals around the market can be a hassle, but it will be worth it. Imagine paying your mortgage for 30 years, and just because you are too lazy to find the best deals, you’re stuck with a high-paying mortgage. We don’t want that.
First-time home buyers’ Credit Canada is a must when you plan on applying for a mortgage.
