Things to know before buying your first home

Things to know before buying your first home

Buying your first home can be exciting and nerve-wracking at the same time! It is one of the biggest purchases in your life – so it is absolutely normal to feel overwhelmed. To beat this home buying maze, it is important to get well versed in the buying and mortgage loan process.  Here are a few tips from Dominion Lending Centres NasaKasa team to easily navigate through this process.

The best tip we can give our clients is to get pre-approved first. It’s a common misconception that first-time buyers first connect with a realtor to begin the house-hunting process. “How much are you pre-approved for?” Most of the homebuyers would come across this question when you show your interest in a listing.  But before you begin the house-hunting process, a pre-approval will help you to understand your affordability. You will be a “serious buyer” for the real estate agent and the seller rather than a homebuyer who is just “looking”. Also, you prevent any last-minute surprises such as errors on the credit report that may delay the home buying process.

A credit score is one of the three essential components when applying for a mortgage. Your credit score not only affects the type of mortgage but also the amount and rate you would be able to qualify for. You should also be mindful of your credit card spending until the closing date. Try to keep your cards at a low balance and make payments on time; this will prove to the lenders that you are responsible for managing your debt.

Have you saved up for the down payment? A down payment is the amount of money you put towards the purchase of a home. The minimum amount you need for your down payment depends on the purchase price of the home. If your down payment is less than 20% of the price of your home, you must purchase mortgage loan insurance. Higher down payment will allow you to secure lower monthly mortgage payments. 

You want to save enough money to have enough for a down payment, closing costs, and unexpected extra costs. When you purchase a home, you also welcome all the issues that come with the house; you don’t want to end up with a broken furnace and unable to afford repairs or replacements. We recommend that you should include such unforeseen expenses towards some repairs and maintenance. When buying the home, you should make sure you ask the seller’s realtor the age and conditions of all major appliances and systems to ensure it’s in working order.

A mortgage broker may require some financial documents to assess your financial stability and determine the mortgage rate and terms for your application. Preparing a checklist for important documents would allow you to remain stress-free in case you are asked to supply additional paperwork. This will facilitate a smoother mortgage process and ensure timely submission to avoid any delays. Also, be mindful to only accept a mortgage loan for an amount you are confident you can afford as the lenders may approve you for a higher amount. 

Once you have your mortgage pre-approval ready to go, connect with your local realtor to help you with listings as per your requirements. You can reach out to your family and friends to find a trust-worthy realtor for personal recommendations and also read online reviews. Also, be sure your realtor is knowledgeable within the community you are looking to buy. We partner with a team of experienced and professional realtors that we can refer to find you the perfect home

During your search, be sure to remember to pay attention to the location, you can fix issues in a  home internally, however, you can’t change the external factors in the local community. Factor in the crime rates in the neighbourhood and if you are a family with kids you can also find out more about nearby schools and also the commute time to work. A final tip would be to change the locks after getting your keys; you never know who had access to the house earlier. 

Dominion Lending Centres NasaKasa

If you are planning to buy your first home, get in touch with a mortgage professional at Dominion Lending Centres NasaKasa who will work with you to get the mortgage you require. You can reach us at 905.997.7001 or email us at mtg@nasakasa.com to begin your home buying journey.