Home Buying Made Simple

Homebuying 101 June 11, 2019

So you’ve decided to buy a home! There are few things in life that are as daunting or as exhilarating as the process of buying your first home. The process can seem intimidating; but with a little planning and organization, it truly can be a simple and smooth process.

The rule of thumb is that you should be prepared to have 20% down payment on a home. However, even first time home buyers may be able to secure a mortgage with a down payment as low as 5%. If you have a down payment of less than 20%, you’ll be subject to the Canada Mortgage and Housing Corporation (CMHC) insurance premium to secure your mortgage, which is an additional fee that you’ll need to budget for. Your down payment amount will also have an influence on your monthly mortgage payment and the interest rate that you’ll be offered (higher down payment, lower monthly mortgage payment).

Meeting with your bank or mortgage broker to seek pre-approval before doing any serious home hunting will give you an idea where to start. Pre-approval is a simple check that your mortgage specialist will calculate to determine the amount that you are approved for from a lender. During this process your credit will be checked and will be a key factor in approval. Before you start looking at homes, it’s a good idea to be free of any large outstanding debts and maintain a good credit score. Your mortgage specialist or the Area Manager within the new community you are looking atpurchasing in can then help you determine the right amount for your budget.

Now you can start looking, you’ll need to start visiting showhomes in communities that seem like a good fit for your needs and any other factors that might be important to you. Then, once you choose your community and builder, you’ll need to make sure the salesperson is a good fit. The estimated length of time from signing to move in is around 7 to 8 months. Either way during this time you will be working very closely with your Area Manager so it’s important to make sure you get along well and they understand your requirments and needs.Your salesperson will walk you through a series of steps, from choosing the right lot to customizing your home.

Owning a home is such a rewarding experience! There’s a lot that happens during the process, and it can be easy to get overwhelmed.But with some planning and patience, your journey to home-ownership can be joyful and stress-free!

Get one step closer to home

Follow us @shanehomes