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    Home Purchase Mortgage

     Before buying a home, make sure that you’re ready with all the costs you would charge. Home-ownership is a huge responsibility. Also, you need an organized financial system to keep up with its payments.
     

    Then, you may note the information below to give you insights into the home-ownership considerations.

    Down payment

    A down payment is one step closer to closing your home-ownership deal. Moreover, if you haven’t saved yet, it’s time. Moreover, you should have a dependable financial means to hold space for this every month.

    Steady income

    Home-ownership also comes with the bills and unexpected expenses relevant to maintenance and repair. A firm income stream is needed to sustain monthly payments and unexpected scenarios. Furthermore, it will make it easier to qualify for a mortgage loan and help improve your score. In contrast, if you have a non-confirmable income, it might be complex to permit.

    Local market conditions

     

    Take into consideration the market’s timing. Then, try to assess the local real estate conditions and see if it’s a good purchase.
     

    Furthermore, be sure to afford regular payments at a higher rate in the future.

    Settling down

    Obviously, it’s best to purchase a home when you take a look at your personal and professional life and your financial ability. In addition, you should at least be ready to anticipate some changes that may come up later that will challenge your financing. Besides, it’s better to be prepared!

    Steps to Home Purchase

    1. Save a down payment

    In Canada, you need a down payment of at least 5% of the home purchase. With a home price that ranges between $500,000 and $1 million, you’ll need 5% of the first $500,000 and 10% of the rest of the price. Also, for homes valued at $1 million or more, the minimum down payment is 20%.
     
    Indeed, it’s good to pay attention to your down payment as it creates a comprehensive benefit to your home purchase journey. In addition, a larger down payment is a significant factor.
     
    Furthermore, organizing your finances and paperwork takes part while you save for your down payment.

    2. Pay down your debt

    It’s great to pay off all of your loans. Besides, lessening your debt levels will create a positive outcome for your credit score and your debt service ratios which are the formula used by lenders in determining how much they will lend you.

    The fewer debt burdens you have, the more opportunity will benefit you.

    3. Prepare your documents

    Since applying for a mortgage requires much paperwork, you need to organize everything so that you won’t find any hassle when you are in the process. Then, you can easily set yourself towards an easier situation.
     

    Below are some of the needed documents for your application.
    •    Employment information
    •    Source(s) of income
    •    Service and investment statements
    •    Inventory of all other debts and assets like cars and car loans

    4. Check for rebates and grants

    Obviously, it’s given that buying a home is cost-expensive. Try to look and then, check some grant eligibility that may add value to your home purchase and helps the cost lessen.

     

    5. Shop for the best rate

    Searching for a favorable rate can save you money. Comparing prices and rates is a massive part of your home purchase journey. It will be a great help if you seek a mortgage broker to help you find and decide on a great deal.

     

    6.Get a mortgage pre-approval

    Once everything above is set, you may now try your mortgage to get pre-approval. It’s free and doesn’t commit to one lender. Below is the information informing your house hunt to help you determine your maximum purchase price.
     

    •    How much you can afford to spend on a house
    •    How much your maximum monthly mortgage payment could be
    •    What mortgage interest rate is available to you

    7. House hunting

    Without a doubt, all set above means you’re now ready to contact a real estate agent.
    •    Look for a real estate agent that specializes in the type of house you want
    •    Keep away from showing yourself as a first-time homebuyer. Then, be reliant on your experienced and qualified agent
    •    List down the ones you like considering features and price
    •    Be prepared to move quickly in a competitive market

    8. Make an Offer and Seal the deal

    Everything will move fast after you find the house you like the most. Once your offer is accepted, you’re required to pay a deposit against the purchase price. Then, finalize your mortgage loan financing through your mortgage broker, and be ready for a home inspection.
     
    The offer is subject to change depending on the home inspection findings. Also, you’ll secure your financing through the help of a real estate lawyer, transfer of title to your name, and of course, your down payment.
     

    Finally, when everything is set, get ready for the awaited moment of receiving the keys and opening the new doors you have dreamt of for a long time.

    We at Private Mortgage Canada are your best companion to your home purchase. We open the best service just like you are opening your new door!

    Apply for a Home Purchase Now!

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