Millennials, especially immigrants from Southeast Asia, throughout Canada are making the leap into home ownership, recognizing that it is one of the finest but biggest long-term investments they can make.
Whether you’re purchasing a home, a condo, or a townhouse, the process can be overwhelming, and you may not know where to begin.
So G.S. Mann one of the undisputed mortgage brokers Calgary NE has furnished a step-by-step guide on how to purchase your first house in Canada, especially Calgary.
Buckle up & read till the end to know everything you need to do in order to avoid any hassles while buying your home sweet home.
Step 1: Accumulate money for the Down Payment
Your first step should be to collect money for a down payment before you begin looking for real estate. The amount of money you put down on a house is referred to as a “down payment.” You may wonder how much I need to save for it.” The minimal amount is determined by the purchase price of the residence. A down payment in Canada is normally between 5% and 20% of the purchasing price. So, it’s for sure that you would need to start saving quite early.
Step 2: Prepare Your Finances
Before you start looking at real estate listings, be sure your finances are in order. This procedure will assist you in determining how much you can afford to buy and organizing important papers needed to support a mortgage application.
Step 3: Organize Your Paperwork
Before granting you a mortgage, a lender will consider three factors: your present assets (what you own), your income, and your current amount of debt.
Your mortgage lender may ask for the following information from you throughout the application process:
- Photo identity issued by the government (driver’s license, passport, etc.)
- Proof of income and employment
- Proof of a down payment
- Where it will come from
- Financial commitments (e.g. spousal/child support) or debts (e.g. credit card balances, auto loans or leases, lines of credit, college loans)
Having these documents available is a house-hunting trick that will save you from scurrying at the last minute to get your act together.
Step 4: Hire a Professional Mortgage Broker
Professional mortgage brokers Calgary NE have extensive knowledge of every stage of the process, which may reduce stress, and they’re also connected to a professional network of inspectors, insurance agents, and other professionals who could join your team.
Step 5: Obtain a Pre-Approval for a Mortgage
After you’ve organized your funds, the following step is to determine how much you can spend. To come up with a budget, use a mortgage calculator to include the amount of your down payment, your amortization (repayment) plan, the final selling price, and so forth.
Step 6: Start looking for a home & make the deal
Purchasing one’s first house may be a difficult task for anybody. You’ll need to work out your finances, find and take advantage of savings opportunities, get pre-approved for a mortgage, and employ your mortgage broker Calgary NE, lawyer, and other specialists long before you can start looking for your ideal house.
Although it may appear daunting, many millennials believe that becoming a homeowner is worthwhile. If that describes you, this article will assist you in getting one step closer to receiving the keys to your new house. Best of luck!