Buying your first home in Ontario has become a bit of an intimidating process. It was already challenging for newcomers to the real estate industry who needed to learn the best home buying strategy. Now there is pressure to do so on the fly, with houses moving quickly off the market–sometimes without being seen. And there is additional uncertainty about rising interest rates. Getting your first home loan can be challenging, but there are some things you can do to make it happen.
Table of Contents
- Start Improving Your Credit Ahead of Time
- Get Approval and Consider If It’s Right for You
- Deposit Funds More Than Two Months Out
- Get It In Writing, Always
- Choose Your Agent Carefully
1. Start Improving Your Credit Ahead of Time
About when you start saving for your down payment, you should also get a credit score report and take a look at anything that might be negatively impacting it. You’ll have time to make sure you are correcting any issues moving forward, so that when it comes time to actually be approved for a mortgage you are less likely to be turned away over credit issues.
2. Get Approval and Consider If It’s Right for You
When you’re thinking of buying a house the bank will tell you, during the preapproval process, what it is that you can afford. However, just because you can afford a house of a certain size, doesn’t necessarily mean that you should spend that much. If you have other financial goals or plans to take on other debt, such as to build a business, then perhaps you might want to purchase a home that is below your means.
3. Deposit Funds More Than Two Months Out
Many people buy their first home with the help of large financial gifts. Or, many couples need to move money between them to get their down payment together. If you need to deposit funds, do so two months before you seek a preapproval. Banks make their decision based on your last two months of finances, so you want your deposit to occur before that window.
4. Get It In Writing, Always
As you start looking for homes, the people who currently own them may start making promises. They are leaving the stove behind, they will get a home inspection at a certain time, they’ll pay for the repairs that the bathroom needs, and more. You should always get these things in writing in order to ensure that they’ll happen. If the homeowner doesn’t follow through, it is much, much harder to hold them accountable if you do not have it in writing.
5. Choose Your Agent Carefully
Your home buying experience, especially your first one, will be largely determined by your real estate agent. That’s why it is important to choose a good real estate agent who caters to first-time home buyers.
With the help of Beamuler Approved, you can find a professional who can help you make the most of the homebuying process.