Step 2: Financing Your Home Purchase

Financing Your Home

The first step before looking at homes is getting mortgage pre-approval from a bank mortgage broker or an independent mortgage broker.  This will either tell you how much they will lend you and at what interest rate, or what you need to do before you can borrow and get pre-approved.  They typically look at things like your income, the amount available for a down payment and your credit history.

Financing Your Home

Having pre-approval gives you a better idea of which homes you should look at and can afford and it lets your realtor know that you are a serious buyer.

There is nothing worse than finding out after an offer is made that you can not get the financing and your dream home purchase crashes!

Here are some great sites to use to help get a better idea about mortgages and pre-approval:

CMHC (Canada Mortgage and Housing Corporation)

RBC Mortgages For First Time Home Buyers

TD Mortgages – The Home-Buying Decision

TMG Mortgage 101 Basics

Financing Your Home

Step 3:  Housing Options

Step 1: Are You Ready To Buy Your First Home?

Buying Your First Home

Tired of renting? Living in a basement?  Need more space?  The process of buying your first home can be overwhelming.  Here are some steps to consider to turn your dream into reality.

– Review your budget (yes, you need one!)  Do you make enough monthly income to qualify for a mortgage and pay for the mortgage payment, taxes, condo fees (if there are any), utilities and regular maintenance?  You can count on needing at least $1500 a month. Check this website out for great budgeting ideas:

http://www.gailvazoxlade.com/resources/guide_to_building_budget.html

Your First Home
– Start saving for your down payment.  For a $200,000 condo, you can expect to need a minimum of $10,000 down.

– Then save some more!   Establish your priorities.  That might mean putting off things like the new car or expensive vacation for a while.

– Establish good credit.  Pay off debts like your credit card regularly.

– Talk to your bank or a mortgage broker. They can help you find out what you qualify for.  If you don’t qualify yet, they can help you make a plan.

Not Your First Home

– Go online and check what’s available and for what price. Be realistic about your expectations.  House, duplex or condo?  New or old?  Remember, it’s a process, you probably won’t be starting out in your dream house!

With a bit of planning, your first home doesn’t need to look like this!

Not Your First Home

Coming Next

STEP 2:  Borrowing Money