12 Feb Top 5 Mortgage Tips for First Time Home Buyers
Being a Mortgage Broker has taught me many things, and one of the most important lessons I’ve discovered is that there’s always something new to learn. Recently, my colleague Joe Samson, a real estate agent in Calgary interviewed me as well as 34 other Mortgage Experts across Canada asking them:“What is the #1 Mortgage Tip that you would give to a first time home buyer?”
I’d love to share their comments with you.
Most of the answers received are invaluable and can be viewed on his blog, but I ‘ve selected my top five favourite mortgage tips from the other Brokers that I believe are crucial for first time home buyers. If you’re new to the purchasing process, then these tips will help you make more sound decisions.
1. Allot Money for Spending!
A lot of first time buyers focus on the maximum amount they can spend on their mortgage and forget that they like dining out, going to the movies and spending weekends traveling. When you’re buying remember that you’ll need money to live, so don’t end up with a mortgage that will max you out.
Tip: I recommend searching homes by price so you only see what you can comfortably afford.
2. Prepare Paperwork Ahead of Time
Want to save time down the road? Before you look at homes, bring in employment documents, financial information and other paperwork to your mortgage broker and/or bank. Once everything is verified you’ll be able to have a more enjoyable time looking for homes.
3. Consider All Home Ownership Costs
When you own a home you’ll have to pay for more than just your mortgage. You’ll also have to pay for repairs, upgrades, insurance and a lot of other expenses that sometimes can’t wait for you to save up the cash. A savings cushion is essential for a responsible homeowner to have.
4. Know that Mortgage Rates May Increase
There have been record lows with mortgage rates in recent years, and this is bound to change in the near future. This means that when your renewal comes up you may have a bit of a payment increase on your hands. Pay attention to market conditions, speak with your real estate agent about chances of increase and make sure you don’t spend the maximum you can on your budget.
5. Find Someone to Help You
It’s extremely important to have a good real estate team to work with you during the buying process. You’ll not only want their advice, but you’ll need it as well! They will have been through this process time and time again, so you can trust their expertise. Don’t be scared to ask a lot of questions and have them teach you everything that they know about the buying process so you are more readily prepare to handle your next home purchase.
All the best and feel free to reach out to me if you have any questions.