If purchasing your first home is one of your goals for 2020, then one of your first steps should be to get pre-qualified for a first-time homebuyer mortgage. While this process can seem overwhelming it doesn’t have to be. Just follow our top tips for first-time homebuyers and you will be in good shape.
Tip #1 – Work with a mortgage broker.
When you are getting your first mortgage, it can be tempting just to go to your bank to get a home loan. After all, you’ve probably been a customer there for years and you feel comfortable there. The problem is that just because you’ve been a customer at your bank for years, it doesn’t mean they are automatically going to give you the best rate on a mortgage. Mortgage brokers have access to dozens of lenders, and they will shop around on your behalf to help you get the best interest rate you can. This can save you thousands of dollars over the term of your mortgage.
Tip #2 – Learn about what government programs you might qualify for.
As a first-time homebuyer, there are a number of government programs available to help you get into your first home. For example, the First-Time Homebuyer Plan allows you to borrow money from your RRSP for your down payment, and the recently introduced First-Time Homebuyer incentive might help you reduce how much you have to pay on your mortgage each month. Your mortgage broker can go through the details of these and other programs with you and help you determine which ones are right for you.
Tip #3 – Get Pre-Qualified for a first-time homebuyer’s mortgage before you start house-hunting.
When you’re finally ready to buy a house, it can be tempting to go right out and start looking at houses on the market, but until you get pre-qualified, you won’t know what your budget is and you could end up wasting a lot of time looking at homes that are out of your price range. Additionally, it can be tough to get a real estate agent to work with you if you aren’t already pre-qualified.
Tip #4 – Don’t change jobs or make major purchases before you close on your home.
Many first-time homebuyers don’t realize that major changes to their credit or financial situation can jeopardize their mortgage pre-qualification. Once you’ve been pre-qualified, avoid changing jobs or making major purchases on credit until after you have closed on your new home.
If you are looking to get a first-time homebuyer mortgage, we can help. Contact Akal Mortgages today.
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