10 Tips for Getting Ready to Buy a House

| March 24, 2015
ready to buy a house

1. Talk to a Mortgage Broker

A good mortgage agent will shop around for the best deal for you, while banks will only offer you their own mortgage deal. The top mortgage brokers will have great relationships with the banks and can offer their products as well as dozens of other lenders to be sure to always get you the best mortgage possible.

2. Make sure you have a Realistic Budget in mind

Think about this formula: assets minus liabilities. Assets can include cash, investments, savings, and cars; liabilities are what you owe – car loans, lines of credit, and credit cards. Also factor in that the bigger the down payment you can manage, the less interest you’ll pay in the long run. Build a budget that allows you to put money away each month for that down payment.
For a rough assessment of how much you can afford, check out mortgages.ca new mortgage calculator.

3. Understand your Terms and Conditions

How long do you want to lock the mortgage in for? This determines your rate of interest. Generally, the shorter the mortgage term, the lower the interest rate. Also, consider the amount of time it will take to pay off your loan (amortization). Is it 15 or 35 years? The longer your amortization, the smaller you payments will be.

4. Make sure you can afford the Mortgage Payments

It may seem simple, but it trips up many people who just want to get their foot in the door. How much money you have today is of course relevant, but think about how your life will look for the length of the mortgage. Will you be able to continue to make the full monthly payments on time?

5. Investigate your Credit Rating

It’s helpful to have an idea of what your credit rating and/or history looks like before you apply. A good credit rating can make a great deal of difference between lenders and products.

6. Prepare to Work with Real Estate Agents

Get the facts and figure out any potential agent’s duties, loyalties and fee structure before you choose one.

7. Begin your Research

MLS.ca, Condos.ca and Property.ca are just a few examples of real estate webistes that have plenty of helpful information that can help anyone begin their new property search.

8. Make the Offer

By this time, your broker and real estate agent should have you well prepped – but there’s never one set of instructions to cover all that can happen in life or in buying a home. Talk with your broker and agent frequently. We are here for you.

9. Before Closing

Your broker or real estate agent can help you find a real estate lawyer who can help plan to cover the closing costs due on the day of closing. A general rule-of-thumb is to set aside 1.5%-2% of the purchase price for closing costs.

10. Breathe

Talk it through with your mortgages.ca agent, take it step by step, ask questions and be in the moment.
It’s an exciting time and a stressful one – but it doesn’t have to be, it should also be fun.

In Conclusion, if you are ready to buy a house, contact us at mortgages.ca and we can help connect you with qualified agents.

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