First Time Home Buyer's Guide

First Time Home Buyer's Guide

You might be ready to buy a home, but are you armed with the knowledge you need?
Do you know about credit score requirements? Do you know which rate to choose fixed or variable?
Do you know how much you can afford?

 

Here are some tips:
1. IMPROVE YOU CREDIT SCORE

One old rule still applies: The higher your credit score, the lower your down payment and monthly payments.

Below 660 or 680, you’re either going to have to pay sizable fees or a higher down payment.

On the other end, a score HIGHER THAN 680 will get you a good deal and above will garner the best rates on the market.

2.FIGURE OUT HOW MUCH HOUSE CAN YOU AFFORD

You can get the mortgage amount estimate using Our Mortgage Calculator

Improve your chances by trying on that financial obligation long before you sign the mortgage papers.

Before you home shop, calculate the mortgage payment for the home in your intended price range, along with the increased expenses (such as taxes, insurance, and utilities).

3. SAVE FOR DOWNPAYMENT AND CLOSING COSTS

Depending on your credit and financing, you’ll typically need to save enough money to put anywhere from 5 percent to 20 percent down if you don’t want to pay Insurance

If you are self-employed and you deduct all expenses than your income may be low, in this case, the lender requires the higher downpayment to 15% and up will get you going.

Another expense: closing costs. Whatever your loan source, you’ll also need money to pay closing costs, which run (depending on where you live), from 1% to 1.5% of your mortgage amount.
You can calculate some of them by going to these links
– Land transfer calculator http://www.landtransfertax.com/ontario-land-transfer-tax
– Title insurance https://fct.ca/quote/

4. BUILD HEALTHY SAVINGS ACCOUNT

This is over and above your money for the down payment and closing. Your lender wants to see that you’re not living paycheque to paycheque. If you have three to five months’ worth of mortgage payments set aside, that makes you a much better mortgage candidate.

5.GET PRE-APPROVED FOR A MORTGAGE

This one is easy all you need to do is Get Free Mortgage Pre-Approval

 

6. BUY A HOUSE YOU REALLY LIKE

If you’re buying today for yourself and your family, you want a home that will make you happy for the next few years.

And depending on how much you put down, and how much you have to shell out to sell and relocate, short-term ownership can be a pretty expensive proposition.

Improve your chances by stepping back from “bidding wars” and making certain “you like the house.”

Don’t Forget Closing Costs

Standard Closing Costs Can Add Up and You need to have that money available.

Mortgage-Related Costs

  • Legal fees
  • Property Inspection Cost
  • Lender or Broker fee if your credit score is not perfect
  • Appraisal Fee

Property Taxes

  • Transfer Taxes and Land Registration Fees

Homeowners Insurance

  • Title Insurance
  • Fire/ Flood / Earthquake Insurance if applicable

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