How to Prepare for a 2023 Home Purchase
The Canadian real estate market is shifting month-over-month – and if you’re a first time homebuyer you may have some questions about how to set yourself up for a successful home purchase in the coming year. Let’s get back to basics with the key factors you should be focusing on to make your mortgage pre-approval a smooth and successful one.
1. Determine Your Mortgage Payment Comfort Zone
Buying real estate is a big step, make sure you start off on the right foot by establishing a home buying and ownership budget - before you set out to look at homes. Remember; your budget should include your mortgage payment, property taxes, utilities, insurance and any additional fees associated with home ownership.
2. Understand Your Credit
In Canada, credit scores range from 300 to 900. The higher your credit score, the more options lenders can offer in terms of mortgage products and interest rates. Generally speaking, you’ll need at least a minimum credit score of 680 to qualify for your mortgage. Connect with me for strategies to increase your credit score quickly.
3. Gather Your Proof of Income and Down Payment
Each lender may have additional documents they require to finalize your mortgage, however, there are a few items you can have ready to get the pre-approval rolling. Collect the last 2 years of your Notice of Assessments, a current paystub and a letter of employment as these are staples for verifying your earnings. In addition, you’ll need to provide proof that you have your down payment funds available and that they’ve been saved for 90+ days.
4. Connect with a Trusted Mortgage Professional
Achieving a mortgage pre-approval is the most important step to complete prior to going out and looking at homes, and it’s never too soon to start working with a professional who can help you to determine how much house you can afford. Your chosen mortgage pro will review your mortgage payment options, as well as available rates and terms – don’t forget to ask them about any pre-payment penalties, options for porting in the future or additional fees you may need to know about.
Once you’ve got a signed mortgage pre-approval letter in hand, it’s time to start seeing some houses. As you’ve prepared for your mortgage approval, don’t forget to set a list of the “must-have” features you’d like to have in your new property.
If you’d like to start the process and see how much you may be approved for, you can do so from the comfort of your home by visiting my online mortgage application, or connecting with me directly; firstname.lastname@example.org.