How to Buy a House
The prospect of purchasing a home can seen overwhelming! The sheer price tag of real estate itself can seem daunting. But don’t worry if you are considering purchasing a home, there is financing for that!
The first hurdle, for many first time home buyers, is getting together the down payment. The Bank of Canada (ie law makers for house purchase financing) require a home buyer to have at least 5% down payment and no you can’t borrow that off a credit card. You must prove that money has been in your bank account for at least 3 months. As an example if you are looking to buy a condo for $500,000. The first step is to save up the down payment of $25,000 or convince your parents to gift it to you. Down payment gifting is allowed but down payment borrowing is not.
Once you have figured out your down payment, you will need to get pre-qualified for a mortgage. A mortgage is what getting financing on a house is called. A mortgage will typically stretch out much longer than what you might expect. Most homes are financed over 30 years! There are 2 steps to the mortgage process. The first is pre-qualification where your bank or lender will qualify you. The second step is once you have found a place you would like to buy they will qualify the property also!
Now that you have your down payment and your pre-qualification in line, the fun part is getting out there and shopping for a home. This is where I come in, my job is to help you make the absolute best buying decision possible! By assessing your needs and budget making suggestions. By preparing a detailed pricing strategy to make sure you don’t overpay for your dream home. We’ll be hitting the road for private showings, the weekends for open houses and if your budget allows new development and pre-sales centers.
Looking to learn more about the process of searching and making an offer on your dream home. Download our first time home buyers guide!