Being a first time homebuyer can be overwhelmingly stressful. Sean Stewart can help educate and guide you throughout this process. As your trusted mortgage broker in Ajax, his team has made a list of three helpful tips that can prepare you for your first mortgage.
- Check your finances
Buying a home could easily be the biggest purchase you ever have to make. Being financially prepared ahead of time can help make the mortgage process run smoother and ensure you get the best rates. Before you start your application, check your finances and your credit score. Your home loan rates are largely dependent on your income and credit score, so be familiar with your finances so you know if you are capable of taking on this responsibility.
- Start saving as soon as possible
A lot more money goes into purchasing a home then just paying the listed price. Most first time buyers are unaware of the additional costs associated with homeownership, which includes, but is not limited to: property title insurance, home appraisal, lawyer fees, lenders fees, and a down payment. If you want to avoid paying for mortgage default insurance, (which is an additional monthly payment that protects the lender in case you default on your mortgage), you need to pay at least 20% on your down payment. This means you need 20% of your home’s value available in cash. The earlier you start saving, the less stressed your finances will get when obtaining an Ajax mortgage.
- Get pre-approved
Pre-approval is not mandatory but it is highly recommended. This gives you more credibility with sellers when shopping the residential market. Pre-approval shows that you are financially capable of owning a home, and therefore, will make a seller more inclined to work with you over someone who is not pre-approved. It also lets you know exactly how much you can borrow from a lender. This specific price can save you time because it will let you know exactly what price range to shop in, and which houses to avoid.
Don’t let your first home buying experience become too overwhelming. Talk with an Ajax mortgage broker today to go over your affordability and get pre-approved. Sean Stewart at SGH Mortgages Inc., will always put you first and will find you the best mortgage options for your financial goals. Contact him today to get started on your application at 905-427-9596.