9 Steps to Buying a Home
1 - Save Money
Take a minute to review your budget. Now would be a good time to get some exact numbers in terms of your salary, debts, investments etc. That way, you have a better idea of what you can afford. Now that you’ve determined your budget, you can decide how much money you will need accessible for your down-payment. Most down payments range 5%-20% of the property price. The amount of money you contribute to your down payment can affect your mortgage in several ways. Check out our blog post on How Your Down Payment Affects Your Mortgage.
2 - Speak to a Mortgage Professional
Speaking to a mortgage professional is a very important part of the mortgage application process. We can determine what mortgage you qualify for and how much money you can get. We determine what you can qualify for based on your income, credit score, debts etc. There are LOTS of lenders out there, so mortgage professionals are a great tool to help you find the best lender that fits your needs. Additionally, your mortgage broker should be there for you throughout the life of your mortgage - it’s great to have a knowledgeable resource on your side.
3 - Get Pre-Approved
Your mortgage professional will get you pre-approved for a mortgage. This will clearly outline your budget and essentially tells you how much money you have to buy a house.
4 - Start House Hunting
Now it’s time for the fun part - SHOPPING! It’s time to meet with a real estate agent and start shopping for houses. Your pre-approval is accurate for up to 120 days, afterwards it will need to be re-calculated.
It can be hard to find a house that is perfect for you and exactly what you’re looking for. Not everyone has the same eye for design and preferences. If you find you’re having a hard time finding the perfect place, consider talking to your mortgage professional about the program ‘Purchase Plus Improvements’. This will allow you to access some extra money to put towards renovations - but keep in mind there are some restrictions and the renovations have to add value to the house. Read our post about the Purchase Plus Improvements program to learn more!
5 - Make an Offer
Time to talk about finances. Your real estate agent will be there to guide you through this step and get you the best deal possible. Fingers crossed you get lucky and your offer under asking price is accepted!
6 - Final Approval
Now that you’ve made an offer and have a purchase lined up, we have to access the money you’ve been pre-approved for. When you get pre-approved for a mortgage by a lender, they will have a list of lender conditions that you must meet before being able to use the loan. Once those requirements are met, we can get going.
7 - Get a Home Inspection
If you haven’t gotten an inspector to walk through the home to review any issues before putting in an offer - it would be a good idea to do so. It’s best to know everything you can about your home that you’ve just spent a lot of money on!
8 - Protect Your Family
Insurance, insurance, insurance is so important. Talk to your mortgage professional about Mortgage Life Insurance and Home and Fire Insurance. We can direct you in the proper direction using our previous experience.
9 - Close the Deal
Easy peasy. Complete the transaction and get the keys! Your mortgage payments should be all set up and now you are ready to move in.
Most people go through this process once or twice in a lifetime. Mortgage professionals and real estate agents go through multiple of these processes every day. They can help you avoid making any mistakes that a lot of first time home buyers make. It’s a no brainer, if you’re thinking of buying or refinancing a home, contact your mortgage broker. Don’t have one and not sure where to start looking? Contact our brokers at Weninger Mortgages and they would be happy to help you take control of your financial future.
