Purchasing a house is a huge investment that requires careful consideration. To help get you started, we’ve outlined some simple do’s and don’ts to remember so you can spend less time feeling overwhelmed and more time making confident real estate decisions!
Do: Get pre-approved
When deciding to invest in property, it’s important to be pre-approved by a mortgage broker before searching through listings. Why? Because then you’ll know if you can even purchase the home along with knowing the maximum amount of money you have to spend.
Don’t: Get your hopes up
If you aren’t financially prepared, a bank or broker may not allow you to purchase a home. Before applying for a house loan, ensure you at least have your minimum down payment as this is an essential requirement. Before getting excited about a potential property, make sure you meet the lender’s requirements so you have a better chance at getting approved.
Do: Be financially prepared
When applying for a mortgage, ensure you’re prepared with proof of employment, T4 slips, paystubs, and of course, your down payment. Without these, you’ll run into inevitable trouble when applying for your loan. Check with your bank or broker about what other documents they require in order to go ahead with the application process.
Don’t: Only pay the minimum down-payment percentage
When purchasing real estate, it’s a good idea to give a larger down-payment than what’s required. By doing this, you’ll save money on your monthly payments and if you have a high-ratio mortgage, you’ll minimize the amount of insurance premiums incurred. At the end of the day, by giving a larger down payment, you’re saving yourself a noticeable amount of money.
Do: Be patient
It’s important to take your time and be patient throughout the real estate process. If you have items on your must have list like an open concept kitchen or a spacious bathroom, it’s worth searching through multiple listings in order to meet as much of your criteria as possible. Of course, you won’t always be able to match everything, but it’s a good idea to try and find a home as close as possible to what you’re looking for. The last thing you need is to rush and have regrets with your decision.
Don’t: Give in to pressure
You may find that throughout your real estate search, many different parties will let you know their opinions. While it’s great to receive valuable advice, remember that this is your purchase to make. Don’t allow friends, family members or real estate agents rush you into make a decision you aren’t ready for. When you find a house you love, you’ll know. It’s important to listen to yourself before anyone else.
Do: Research the best mortgage rate
When applying for a house loan, you have a couple different mortgage rate options: fixed vs. variable. It’s important to do your research before making a decision so you’re confident with your decision. To summarize, there’s no increased interest with a fixed rate and it stays the same for the entire term. If you’re a first time home buyer or someone who needs to carefully monitor finances, this type will better allow you to follow a close budget. A variable rate is usually lower at first, but over time interest can increase. This option is a bit of a gamble but it could end up averaging out throughout your term, allowing you to save more money than with the alternative. At the end of the day, the type you choose depends on your income, lifestyle and risk tolerance.
Don’t: Take the first rate you find
When buying a house, you’re not expected to be an expert when it comes to the confusing paperwork. That’s why turning to a professional for help with your mortgage application can be exceptionally beneficial. Here at Rampone-Marsh Mortgages, we’ll help you find the best product at the best rate saving you plenty of time, effort and of course, money.
Do you need help with your mortgage application? We’re never too busy to offer our expert advice and solutions when it comes to real estate financing. Contact us today to get started.