A Beginner’s Guide To Buying Your First Home
While you may be mentally ready to own a home, as a first-time home buyer, you may not possess the know-how of the mortgage approval process or be financially prepared to buy a house. Investing in real estate is a big commitment, and it can take a long time to pay off all the installments of your new home. Therefore, before you begin house-hunting, it is essential to take some time to plan your purchase.
During the planning phase, finding a mortgage to finance your home will require a great deal of your attention as it is a complex subject that demands a great deal of understanding. To help simplify things, Martel Mortgages has put together a detailed Beginner’s Guide to buying your first home. In this guide, we have covered the topic of mortgages and other essentials to consider when purchasing a house.
Plan your purchase: Buying a house is not something you do on a whim. It takes careful planning to make sure you are financially ready. That means you need to understand your credit, income, and savings to know how much you can afford or the possible steps you need to take to improve your finances to purchase your dream home.
Build a team of professionals: A mortgage broker can assist you with recommendations, but your starting lineup should include the minimum of a mortgage broker, a realtor, and a lawyer. Speak with friends and relatives for suggestions on the best professionals for your needs.
Hire a licensed mortgage broker: A licensed mortgage broker is specialized in mortgages and will make the complicated mortgage process simple and straightforward for you. The specialist will help you understand the different requirements for a mortgage and simultaneously take care of the leg work involved in finding the best lenders and mortgage options for your needs.
Prepare your paperwork: It is essential to understand that today’s lenders perform with increased due diligence. For this reason, make sure you gather all your recent pay stubs, T4s, and Notice of Assessment (or NOA, sent by the Canada Revenue Agency). Then ensure you get a pre-approval based on those real numbers to avoid surprises later.
Budget: Before you decide the amount you are willing to spend on your property, think of maintenance costs, property taxes, heating, and future expenses like daycare, diapers, maybe even a new car. After you factor in all of these expenses, you are better prepared to set a budget.
Advice From The Pros
Not all mortgages are created equal: Every mortgage is different from the other, and a professional broker will help you find the mortgage solution that is best tailored to your needs.
Don’t focus only on mortgage rates: A mortgage has multiple aspects that must be carefully considered. So, avoid making decisions solely based on the interest rates quoted to you.
Don’t hesitate to ask questions: This is possibly the most substantial investment of your life, and you deserve to feel comfortable with the entire process, so make sure to ask professionals questions at every step of the way to help you seek clarity on the things that don’t make sense to you.
If you need assistance with your home purchase or have any questions about mortgages, reach out to the experts at Martel Mortgages. As the go-to mortgage experts in Rockland, Ottawa, and Brockville, ON, our goal is to educate you on the various mortgages and help you achieve your homeownership dream. After listening to your needs, we find the right mortgage solution that will suit not only your present financial situation but also your future!
Our services include purchase financing, first time home mortgages, mortgage refinancing, purchase and mortgage improvements, switching mortgage, and secured lines of credit. Visit our website to learn more or contact Martel Mortgages today.