Planning to buy your first home with first time home buyer mortgage in British Columbia? In this blog, our expert mortgage brokers offer some helpful advice that you should go through the mortgage process before making an investment.
If you are new to Canada and need help purchasing your first house or buying a residential property, applying for a residential mortgage is the right choice to opt for. Researching all potential do’s and don’ts is advised to prevent future regrets as mortgages and real estate investments are costly transactions.
Do’s When Purchasing A Property With Mortgage
- Obtain Pre Approval: You might be amazed to learn that some licensed mortgage brokers in Brampton won’t work with qualified purchasers until they have received mortgage pre approval. The first stage in the home-buying process is to get pre-approved. It is advised that you wait to begin your home search until you have been granted a mortgage or are in a position where you are able to purchase a property.
- Work With A Mortgage Broker: You can avoid problems and save money by working with an experienced mortgage consultant and a seasoned real estate agent during the house hunting, funding, and closing process. Selecting an expert can relieve a lot of your stress as they are very well versed with the ins and outs of the real estate purchasing and negotiating process.
- Pay Attention To Your Budget: Keep your financial situation in mind when you search for a property that fits within your budget. Some first-time homebuyers believe they will save money by purchasing a costly property, but this is untrue. Additionally, after using a free house value calculator to determine the property’s worth, apply for a mortgage that you can afford to pay back.
- Remain Adaptable: Homes are around a decade or more old may be available for sale at a discounted rate. First-time homes are frequently not what you should stick to when buying a home as they are literally take your budget a level up. Therefore, if you find a home that doesn’t appear like your first one, don’t back off and keep your options open for changes and renovations.
Don’ts When Purchasing A Property With Mortgage
- Avoid Purchasing It As A Permanent Property: Around 67 percent of buyers only stay in their first home for just 7 to 10 years. Thus, keep in mind that this is only your first home, so don’t indulge in applying for a huge mortgage amount and keep your financial situation and budget in mind.
- Avoid Being Overly Sentimental: Purchasing your first home may bring along a wide range of emotions. When making a costly real estate transaction or mortgage funding, put your feelings aside and understand your long term financial goals to avoid debt.
- Do Not Begin Without Pre Approval: When purchasing a home, you must get pre-approved. This will help you stay in sync with your current funds, debt to be paid, credit score, and the income you generate. Also, getting pre approved for a mortgage can help you find prospective mortgage brokers, lenders, and property sellers easily. Spend as little money as possible till you buy your home.
- Keep Closing Fee In Mind: Your finances may be impacted by transaction closing charges that are not covered by a residential mortgage in Abbotsford. Remember to set aside between 1.5% and 4% of the purchase price to pay for these costs.
Before completing a real estate transaction and applying for a home purchase mortgage, you should adhere to these dos and don’ts. If you are looking for a reliable first home mortgage broker in Abbotsford, Edmonton, and Surrey, feel free to contact our team at Sandhu & Sran Mortgages. For past many years, we have proudly helped eligible first home buyers in getting approved for a low interest mortgage in the shortest time possible. For more details, give us a call today.