Buying vs Renting? Is first time home ownership on your wish list?
If so assess how close you are to making that dream come true.
- Are you familar with the real estate market in your preferred neighbourhood?
Do you know how much you can afford to spend on your 1st home?
- It is best to get pre-approved for a mortgage using a mortgage broker or lender rather than using online calculators because those calculators don't often factor in your debt and credit score.
Have you saved enough for at least a 5% down payment? The good news is you don't need a sizable down payment to buy your first home.
- Conventional mortgages require a minimum of 20% down payment and Hi Ratio insured mortgages require as little as 5%
Are you have a full time regular source of income whether you are salaried or self employed?
- Conventional Lenders favour full time salaried borrowers and hi ratio borrowers may face tighter restrictions if they have part time, contract, commission sale and self employed will be asked to provide 2 years of employment and credit history to quaify
Do you have a healthy credit score?
- A poor credit score makes it harder to get a mortgage approval and you should always make your minimum monthly payments on time. Best practice to keep a good credit score is to keep your credit balance below 35% of your allowed borrowing amount.
If you said yes to all the above questions then your probably ready to start your home search by getting pre-approved for a mortgage so you will know what you can afford and what monthly payment your comfortable paying to own your home.
Buying your first home don't be discouraged ...read more