Are you looking for your first home? Do you feel like it’s time for you to get a first mortgage and begin your journey as a homeowner? To get the best deal possible on a home you want to make sure you have your finances in order. The better your credit rating the better chance you have of getting the best mortgage possible.
Buying your first home can be so much fun, it’s an exciting part of your life. It’s beginning of a new chapter. Applying for a mortgage however, can be less fun so here are some tips to make the process so much easier for you.
How Much You Have to Borrow
How much can you afford to borrow for your mortgage? That’s the first thing you want to decide on. The monthly payments on your mortgage will be only part of the expenses involved in owning a home. There are property taxes, repairs, maintenance and homeowners insurance to consider. You need to determine what your monthly budget will be and then decide how much you can afford for a mortgage.
Check Out Mortgage Rates
It’s a good idea to check out mortgage rates and make sure you are getting the lowest. By getting a low mortgage rate you can save a lot of money on your home. It’s important to discuss your options with the loan manager at a bank of your choice. If you are worried about the interest rate increasing over time you can ask them to lock in your interest rate.
Get a Great Mortgage Broker
A good mortgage broker can help you to learn about how to get a first mortgage. It’s important to discuss the different types of mortgage products available. The broker can help you to find the lowest interest rate and guide you about what kind of service comes with that mortgage.
Save Your Down Payment
It’s extremely important to save for a down payment for your first home. If you have saved less than 20% of the purchase price of your home then you will need to pay for mortgage insurance. For different kind of mortgages check out CMHC website
Prepare All Your Documents
Gather all your documents together. When you are ready to go and apply for your first mortgage you will need to provide the mortgage broker with copies of your recent pay stubs, bank account statements and tax returns. The process becomes far easier for you if these documents are prepared in advanced and brought with you when you go for your first appointment.
Buying a home is a great experience, it’s important however to handle the process correctly so that you get the best possible mortgage you can get.