Becoming a homeowner is one of the most important moments in life, and it doesn’t have to be stressful if you approach it the right way and follow smart practices.
With the prices of real-estate in Canada at record highs right now, it is practically impossible to buy a new home without taking out a mortgage. This process is a bit time-consuming and may scare away some buyers who are unsure how to protect their interests and get a good deal that won’t burden them financially in the future. The following tips can help future homeowners make the best long-term decision and obtain credit under reasonable conditions:
1. Double check your credit history
Administrative errors are the last thing you need when you are applying for home financing. It is highly recommended to go through your credit records and ensure everything is filed properly. That way, you can avoid unpleasant surprises and meet critical deadlines to turn in your credit application for the new home. If you can get a professional to help you check every detail, that’s even better. Asking for mortgage pre-approval can also give you a pretty good idea how much money you can count on, even if the figure that you get might be a little different.
2. Pick a mortgage broker and realtor with good track records
There are so many brokers out there, and they all claim to be the best. What you need to do is to find out what their success rate really is. The easiest way to do this is to ask your friends and relatives for a recommendation, but if this yields no results, online sources can also help you determine which mortgage broker deserves your confidence. Of course, securing the finances is just one-half of the job – you also need to find a suitable home in Guelph or nearby communities that fall within your price range. The best way to do this is through a well-regarded realtor who knows the Canadian real estate market and can give you meaningful advice.
3. Don’t bite off more than you can chew
It can be dangerous to take on a sizable financial obligation since this could lead you to default on the loan and have the home repossessed within a few years. It’s much better to keep your ambition in check and pick a mortgage loan that you can keep up with even if your income takes a hit at some point. There is no need to overpay for your first home – if things go well, it will be easy to apply for mortgage renewal and trade the home in for a better one later. Taking too large of a mortgage loan adds unnecessary pressure during the most sensitive period in your career when you are still fighting to secure your long-term fortunes. Starting small and expanding gradually is probably a better strategy that allows you to keep pace with your mortgage payments.