Tips for Getting a Mortgage for First Time Home Buyers
When buying a home in Edmonton, getting a first time home buyer mortgage can be quite a feat. With these tips, the home buying process will be clearer and you will improve your chances of securing a mortgage to buy your first home. Contact us to learn more.
1. Check Your Credit Score
Without previous home ownerships, your credit score becomes a core factor in securing a mortgage. First, check if your credit report has any errors. If you find any inaccuracies, contact the credit bureaus and rectify the errors quickly.
To enhance your credit score, take time to review your debt-to-income ratio. Remember that while borrowing is vital in building your credit score, it can also harm your creditworthiness. Is your debt-to-income ratio too high? If yes, it is time to consider paying off some debts. As you approach your borrowing timeline, ensure that you make timely bill payments. Your payment habits also reflect in your credit report and may either improve or tarnish your image.
2. Do Some Market Research
Look for the homes within the local market and figure out which types of homes you can afford. Remember that you will need at least 5% downpayment to qualify for a first time home buyer mortgage.
- Do you have the entire amount, or do you need more time to save?
- What are your likely monthly costs and payments?
- Find a Mortgage Broker
When hunting for a first time home buyer mortgage, working with a mortgage broker is a good idea. The mortgage broker acts as an intermediary between you and a variety of lenders to find you the best possible mortgage. After assessing your financial situation, the mortgage broker will determine a suitable loan amount, and contact different lenders to find you the best rate.
Applying for a mortgage can be a complicated process. With a mortgage broker, you get a partner that will do a lot of the legwork for obtaining your mortgage as well as help guide you through the home buying process completely free of charge.
3. Choose Your Terms
Your mortgage broker will walk you through many options for amortization, interest rates, and other terms.
When applying for a first time home buyer mortgage, you may want to ask about pre-payment penalties. Some lenders penalise borrowers for paying off their mortgage early. Understandably, if your cash flow increases over the years, you may want to double up on payments and clear your debts early. Just make sure that no one is punishing you for it!
Don’t be afraid to ask questions. A broker will help to guide you to the correct first time home buyer mortgage product for your financial situation.
When you decide to purchase your first home in Edmonton, consulting a pro can cut back on unnecessary stress and help you save cash in the long run. Dominion Lending Centres Mortgage Mentors is a group of experienced mortgage brokers that specialize in first time home buyer loans. Contact us today to get pre-approved for your first time home buyer mortgage!Request Mortgage Info