Being a first time home buyer can be overwhelming. Your excited to look for your first home, but at the same time a little nervous about the mortgage. Purchasing a home will be one of the biggest purchases and investments you will make in your life. So let’s make sure you are more comfortable with this. This can be a very fun and easy process, it does not have to be stressful.
To start your home buying process, the first thing you want to do is get a mortgage pre-approval. There is nothing worse than starting off looking at houses, finding that home that you love for $350,000 only to find out you only qualify for $300,000. One of the worst things you can do is buy a home you”ll ‘settle for’ after seeing that house ‘you love’. When you’re getting a pre-approval, make sure you are being accurate with your income and other information, bring in an income letter and pay stub to help support your income, this will make it easier for everyone. Talking with a Mortgage Professional, like myself, will give you lots of options in one stop. We have access to over 40 different lenders all with unique conditions and options to get the right mortgage for you and make sure you are comfortable with your mortgage.
After pre-approving for your mortgage and finding out what you qualify for comes the fun part, House Shopping. Use a realtor to help you out. Let the realtor know what you’re looking for. Create a list of Needs and Wants and let them know. For example if you NEED to have 3 bedrooms and 2 bathrooms, and you WANT to have a garage, let them know. They can enter that information into their system and have a list of homes that fit your needs and wants, in your price range within minutes. A realtor can even help you if you are looking at buying or building a newly constructed home.
After you have found your home and your realtor has helped you write your offer and get it accepted. It’s time to bring your offer to your mortgage professional. There will be other paper work that is required to finish your mortgage follow this link for the what other paperwork you may need https://sbourke.wordpress.com/2010/05/18/what-do-i-need-to-get-a-mortgage/ If you are prepared, this is a really easy process. You should get a list of things required from your Mortgage Professional after your pre-approval is approved.
As a first time home buyer there is a few things that you should remember. You can withdraw RRSP’s tax-free up to $25,000. these do need to be paid back over a 15 year period. For example if you were to take out $15,000, this would need to be paid back to your RRSP’s at $1000 over the next 15 years.
Also, another thing to keep in mind. Both the Mortgage Professional and the Realtor are FREE to you, You do not have to pay them anything.
Here is a couple more links to some blogs that I wrote that may be useful information for you.
For information about mortgage insurance, https://sbourke.wordpress.com/2010/06/22/what-is-mortgage-insurance-how-much-does-it-cost/
For information about mortgage terms, https://sbourke.wordpress.com/2010/05/11/what-does-that-mean-mortgage-terms/
For information on some of the home ownership costs, https://sbourke.wordpress.com/2010/05/11/what-does-that-mean-mortgage-terms/
And take advantage of the rapid mortgage payment option, https://sbourke.wordpress.com/2010/06/09/what-is-the-difference-between-bi-weekly-and-rapid-bi-weekly/
For up to date information on mortgages follow me on twitter at www.twitter.com/reddeermortgage
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For more information or questions, please email me anytime.
Thank you for reading
Scott Bourke, AMP
Regional Mortgage Corporation