Mortgage Checklist for the First Time Home Buyers

Mortgage Checklist For First Time Home Buyers

•  Figure out what you can afford - Before you start looking for a home, it is a good idea to meet with a mortgage professional to go over your existing assets and debts to figure out how much you can afford and to get an idea of what your mortgage payments would be. You will also need to factor in other costs such as closing costs, legal fees, property tax, insurance, utilities, and home maintenance.

• Save for your downpayment - In Canada, you need a minimum 5% downpayment in order to purchase a home, but it is a good idea to make as large of a downpayment as you can, which will lower your mortgage payment and potentially help you avoid paying mortgage insurance.

• Review your credit - Check your credit score online using Equifax or TransUnion as soon as possible in case you need to correct or improve your credit score. A score of 650 or higher is where you should aim to be for the best chance of approval. The higher your credit score, the more mortgage money and favourable interest rate you’ll be granted. Under the new mortgage rules, borrowers must have a minimum credit score of 600 at the time of approval in order to qualify for a mortgage under $1,000,000.

• Consider all of your options - Do some research and compare interest rates for different banks and mortgage brokers. Call us at 226-400-6458 for reccomendations.

• Have required documents ready - These documents are required when applying for a mortgage: notice of assessment from the past few years, proof of income (pay stub), your most recent T4, a list of current assets and liabilities, and your social insurance number.

• Get pre-approved - Gaining pre-approval means that a lender has made a commitment to loaning you money to purchase a home. Once you get pre-approved, you’ll know exactly how much you can afford and what your interest rate will be.

•  Call Jody and Paula at 226-400-6458 and start shopping for a home!