Before you begin your search for a new home, you need to plan ahead. There are lots of costs associated with homeownership, including:
- Household repairs
- Land or property taxes
- Household utility bills
Make use of online calculators and other worksheets to help you figure out how these costs add up and what you can and should expect.
Looking for a home in never easy, check out online realtor website, drive around to look for new housing developments or speak to a mortgage broker. All of these real estate professionals are experienced to answer your questions and provide you with the guidance you need and deserve.
How Can a Mortgage Agent Help?
A mortgage agent can be quite helpful during the buying process. They’ll:
- Assess your needs
- Make arrangements for your home viewing visits
- Setup a home inspection
- Take care of your negotiations
- Assist with your mortgage application
Word-of-mouth goes a long way, ask your banker, family, friends, or relative, they may be able to provide you with a referral. When all else fails to make use of the very accessible world-wide-web
Your “Offer to Purchase”
Once you find the home you’d like to buy and live in, it will now be time to draft your “Offer to Purchase.” If you have a Realtor, then they can help you with it. When your offer is accepted, you’ll then need to seek out a real estate lawyer to help you in transferring the property title. Your mortgage broker can probably refer you to some of their connections if you don’t already have one lined up.
Since you’re buying a home, you probably need a mortgage too. With banks becoming stricter due to changes in mortgage rules, you may have better luck going with a mortgage brokerage firm. They have access to a pool of lenders and mortgage products that can be customized to suit your needs.
Your Down Payment & Mortgage Loan Insurance
When you pay down on a home, this amount is subtracted from the amount of your mortgage. However, if your down payment isn’t at least 20 percent, then you’ll have to get mortgage loan insurance on your new home. This will protect your lender if you cannot afford to pay back your mortgage loan. Mortgage loan insurance makes it possible for you to secure a mortgage with a smaller down payment at a lower interest rate. If you want to learn more about insurance for your mortgage loan, speak with a licensed mortgage broker today.
Credit History & Score
As a Canadian newcomer, you won’t have any credit history. This can prevent you from qualifying for a mortgage. You first need to start building your credit, create some history for lenders to look at, preferably positive. Your broker can advise you on how to get started.
The Home Inspection
Never make an offer with a home inspection or at least a condition within the offer for the home to have a home inspection done by a qualified inspector. It’s not uncommon for inspectors to uncover serious problems with a home, so this will allow you to change your offer or cancel it altogether. If it needs repairs you can consider how much these repairs will cost and reduce your offering price. The seller can accept or decline.