So you have saved, and saved and you are finally ready to start house hunting…but before you do, there are a few things that you should be looking into BEFORE you start buying. Namely, your mortgage options. Did you know that there are various mortgage products? Or that each mortgage product has it own personality? They all do, and there is a mortgage product that is just right for you…we just have to find it first!
1. Understand your Expenses.
a. Do you know what you spend in a month? Do you have a monthly budget? With buying your new home, there are several associated costs that you should consider. These include the down payment, closing expenses, ongoing maintenance, taxes and utilities. If you have a budget, revamp it to maximize your saving. If you don’t have one, it is a simple thing to do! Track your spending by listing your household income and your expenses. This will give you what you spend in a month, how much you can save, and a guideline to follow.
2. Knowing your Job Stability
a. This is key to understanding and finding the right mortgage. You need to if you are in an in-demand occupation, or if your position maybe obsolete in a few years. You should also consider the length and term of your position—how long have you been there and how long are you planning to be there?
3. Consider your Limits
a. You and your Dominion Lending Centres broker need to understand what your payment and price limits are. This will determine if a fixed or variable rate mortgage is better for you.
b. You also need to know your amortization. This is the length of time that it will take for you to pay off your mortgage, based on the factors we previously discussed.
4. Know what you want in your home
a. To ensure that your home will grow with you consider these 4 questions:
i. Location: Are you close to the amenities you desire?
ii. Size: Can you comfortably accommodate your family and daily activities?
iii. Special Features: What do you want for added comfort & convenience in your home
iv. Lifestyle: Are you planning on adding to your family, or moving away soon?
Finally, and this is CRITICAL! Get PRE-APPROVED before you begin shopping for your new home. Know your financing, and what is available for you—this way you can shop stress free and you can negotiate for the home of your dreams!