Buying Your First Home?
I Can Help.
Your first home-what an exciting time! A milestone you'll always remember.
So why not make it fun and memorable by working with a mortgage professional that saves you money, time and frustration and reduces risk, stress and uncertainty.
Buying a home is one of the most important financial and lifestyle decisions you will ever make. To ensure you make smart homebuying decisions from start to finish, here are 10 step-by-step tips.
Step 1 — Make Sure You’re Ready
Before you start your search, make sure homeownership is right for you. Ask yourself some fundamental questions. Are you planning on relocating soon? Can you manage home repairs?
Step 2 — Know Your Financial Situation
Evaluate your current financial situation by calculating your net worth and reviewing your monthly expenses and debt payments. Ask a mortgage professional how much mortgage you can afford and the maximum house price that you should be considering. Obtain mortgage pre-approval to make buying a home less time-consuming.
Step 3 — Calculate Costs
Make a list and calculate the upfront costs and other expenses associated with buying and owning a home to make sure you’re financially prepared.
Step 4 — Determine Your Needs
Before you start searching for a home, think about your current and future housing needs, which location is right for you, and what features are important to you in a home.
Step 5 — Find the Right Professionals
Buying a home requires the services of real estate professionals, lawyers, mortgage professionals, home inspectors and so on. It will give you peace of mind to have experts on your team to answer your many questions along the way.
Step 6 — Start the Search
Now it’s time to start your home search. Don’t forget to consider the wide array of search options you have at your disposal, including friends and family.
Step 7 — Make an Offer
Once you’ve found the home you want to buy, you will need to present the vendor with an Offer to Purchase or Agreement of Purchase and Sale. Your real estate agent and/or your lawyer/notary can help you to prepare your offer.
Step 8 — Close the Deal
Closing day is the day you finally achieve your goal — you get to call your new house your own. Quite a few things get done on closing day, and you may also require the services of a mover.
Step 9 — Budget, Budget, Budget
The financial responsibilities of homeownership begin when you take possession of your home. You need to budget for mortgage payments, ongoing operating costs and an emergency fund.
Step 10 — Home Maintenance Keep it up.
Maintenance, repair and renovations are a normal part of homeownership. Regular maintenance will help you keep your home in top condition and protect your investment.
What is Your Credit Score?
Your credit score is a judgment about your financial health, at a specific point in time. It indicates the risk you represent for lenders, compared with other consumers. There are many different ways to work out credit scores. The credit-reporting agencies Equifax and TransUnion use a scale from 300 to 900. High scores on this scale are good. The higher your score, the lower the risk for the lender.
What Factors Influence Your Credit Score?
Credit-reporting agencies and lenders use a mathematical formula to figure out your credit score. This formula takes into account various factors described in your credit report, such as:
Your payment history (Do you carry over a balance on your credit card from month to month? Have you ever missed a payment on any of your debts?);
Any collection or bankruptcy recorded against you (Has a collection agency had to collect an unpaid bill from you? Have you ever been bankrupt?);
Your outstanding debts (What is the limit on your credit card? Is your spending close to your credit limit?);
Your account history (How long have you had credit?);
The number of recent inquiries made about your credit report (How many times has someone asked about your credit report?); and
The type of credit you are using (Do you only have credit cards, or do you have a mix of credit cards and loans?).
These factors do not all have the same weight in determining your credit score. The most important factors are your payment history, whether you have ever declared bankruptcy, and the amount of your outstanding credit balances. Although other elements such as your mortgage information and any personal inquiries you have made may also be included in your credit report, they usually do not influence your credit score.
Down Payment?
Even if you don't have a large sum of money to use for a down payment, there are some creative ways to come by the funds needed. You may qualify for a low down payment home loan. Some of the factors used to determine eligibility for one of these loans include good credit history, adequate income to pay the monthly mortgage payment and appraisal value of the house you plan to purchase. It is important to consult your Mortgage Professional regarding the full requirements.
The Canadian Mortgage and Housing Corporation allows for a minimum down payment of only 5% of the purchase price of the home with a mortgage amortization of up to 30 years. Another money saver is the oportunity for a full or partial exemption of Property Transfer Tax available for first time homebuyers depending on the house value and other criteria.
First time homebuyers (and an eligible spouse) can each withdraw up to $25,000 tax-free (a total of $50,000) from a Registered Retirement Savings Plan (RRSP) account to use as a down payment for a home. Your Mortgage Professional can inform you on the requirements of this program.
A gift from an immediate family member may be allowed in order to provide you with sufficient funds for a down payment. This option including gift amount allowed will vary and depends upon the type of loan for which you are applying.
Another way to assist you in meeting your monthly mortgage payment is to purchase a home with a "mortgage helper." An inlaw suite that could be rented out, make sure you check zoning for the neighborhood.
Where Do I Start?
Call Randy Kazemir TODAY 250.938.1258 to
set up an appointment for your
FREE No-Obligation "Home Ownership Success"
Planning Session.
One hour will save you money, time and frustration and
Reduce risk, stress and uncertainty.
|
