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BUYING YOUR FIRST HOME

Guest post by: Brian King

Article Overview: At a time when interest rates are low, many are rushing to buy their first home in Canada.

BUYING YOUR FIRST HOME

At a time when interest rates are low, many are rushing to buy their first home in Canada. However, with innumerable lenders offering a range of payment options, fixed and variable rates and the state of the global economy, choosing the right option can be overwhelming for first time buyers. CMI accredited mortgage brokers are available to help you choose which lender’s term and conditions are best for you. There are several elements to consider when applying for and choosing your first home and mortgage.

Choosing a home to buy Today, most people begin their quest for a new home on-line. This is especially true for first time buyers who have not yet grown roots in a certain neighborhood or even location. This is a good way to scan neighborhoods, prices, schools and other features in the area, and to get a feel for where you might begin looking at homes.

• Look at several neighborhoods and get to know the area a little. First choose which neighborhood is best for you and keep in mind you’ll be living there for some time.
• Compare prices and features in these neighborhoods and see which represents the best fit for both your lifestyle and budget.
• A serious real estate agent should show you some 20 homes that fit your description. Don’t jump the gun, but take all relevant details into consideration and make a decision as soon as possible before the right home is picked up by other buyers.
• Make sure you have all necessary documents, fulfill mortgage and loan requirements, and have set a realistic price range before scouting for your first home.

What you will need to apply for a mortgage As soon as rates, terms and documents come into the picture, first time buyers are often left baffled. Terms and conditions vary and there is a lender or mortgage that is just right for you and your new home. There are some general ideas that should be followed and considered. Depending on the nature of your business or employment, one of our accredited CMI brokers will walk you through obtaining the necessary paperwork for buying your new home.

• The first item that will interest every lender is the frequency and level of your income. All lenders will require a Notice of Assessment as proof of stable income.
• By considering you Gross Debt Service Ratio (GDS) and your Total Debt Service Ratio (TDS), lenders will determine whether your finances qualify for a mortgage in Canada and, if so, to which amount. Making sure your GDS is below 32% and your TDS is below 40% of your total income will certainly help in obtaining mortgage approval.
• Mortgage lenders will also take your credit score into consideration. Checking your credit history prior to applying for any mortgage or loan is always recommended.
• A down payment is not a major point and will very seldom be required. However, if you do have the available capital, a down payment is recommended and may make obtaining mortgage approval somewhat easier.

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Article Tags: buying your first home, interest rates, professional mortgage lender
Referred by: http://www.searchengineworkshops.com



Related Forum Posts
Re: Invest in Real Estate or Stocks? - The one advantage of "real estate" is that you can develop an in depth LOCAL knowledge and learn how to find bargain properties with good potential in your area. In most cases, there is plenty of potential to make money in property where you live PROVIDED THAT you are willing to do the research. One thing to bear in mind though... do NOT consider you own house an "investment". It is not an "investment" it is your "HOME", and ideally, it should be a home within your means.


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