24
Oct

Well as with any purchase the first thing you need to do is establish a budget.

It would be a waste of your time searching and looking at properties that are not within your budget. And needless to say, very disappointing to put in an offer only to find out that you cannot get the financing!

Therefore, the first step is to get a mortgage pre-approval from your bank’s mortgage advisor or with a mortgage agent/broker. This is a FREE service. Ask them in advance what documents they require before your meeting. This will ensure that you get an accurate pre-approval. You certainly don’t want any surprises after the offer has been made!

This is a good idea even if you’re not planning on moving for the next few months or even a year or two from now. They will help you build a financial plan so you can achieve your goals. If you have “bruised credit”, there are ways in which they can help improve your credit score.

The mortgage should be customized to your specific needs. It’s NOT just about the lending rate! Make sure the lender is someone you feel comfortable with and spends that extra time explaining your options. After all this could possibly be one of the largest purchases you have ever made to date. Be informed!

They will explain the different options of how much you will need available for a deposit. This deposit will be a part of the down payment. And, if your money is coming from overseas you need to enquire how long the money must actually be in Canada as this is regulated by the Canadian Federal Government and not any financial institution. Or, if you have funds in TFSA’s or RRSP’s check with the lender to see how quickly you may access these funds. Many are not immediately available.

Do you have any big changes that you’re expecting, such as starting a family, or buying a new car? What about the unexpected like being relocated for work, or the need to be closer to elderly parents? All of these things could have an effect on your monthly payments and you should ask about penalty fees.
For example, what would happen if you had a 5 year mortgage and you needed to move before the term was up? In some cases it could cost you thousands of dollars!

In addition to making mortgage payments, you will also have to allow for utility costs, yearly property taxes and if it’s a condominium monthly maintenance fees.

Taking the time to get pre-qualified for a mortgage will give you peace of mind knowing that you’re shopping within your budget and will give both the seller’s and their listing agent some confidence that the deal will go through.

Contact me directly to connect you with a lender that will spend the extra time ensuring you a full understanding of your options and will work on getting you the right mortgage that fits you personally!

For a FREE Home Purchase Cost Estimate worksheet send me an email at diana@dianabudway.com

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