What steps have you taken to see what is affordable for you? Most first-time home buyers believe they are less qualified than they really are. You'll be surprised with how affordable a mortgage is, especially in comparison to rent. The first step you must take is seeing how qualified you are.
Step 2: DOWN PAYMENT
In most cases, all you will require to purchase your home is 5%! You will need to be living in the home, credit which is in good standing, provable income and be purchasing a home for under $500 000. If you are purchasing over $500 000 it is a little different. For the first $500 000 you'll need 5%, the remainder of the purchase price will require 10%.
Step 3: DOCUMENTS
You will need to gather a few documents to see if I can get you approved. The documents which are required by most lenders are:
- A Letter of Employment from your current employer - Most Recent Pay Stub - Notice of Assessment from the last 2 years - A 90-Day History of your savings (for your down payment)
If there are other documents the lender requires I will always let you know based on your specific situation. These are a few other documents that may be required:
- Tax Returns - RRSP/Investment Statements - Gift Letter/Appraisal
*If you are self-employed they may want your financial statements and business licences.
After Finding Your Home
Closing Costs are the fees you pay to a lawyer/notary public to complete the purchase of your home. Many first time home owners believe these costs can be expensive. Luckily first time home buyers, in British Columbia may be eligible for Property Transfer Taxes to be exempted if the property is under $475 000. If you are purchasing a property over $475 000, you may qualify for partial exemption. Without having property transfer taxes, your closing costs can become minimum.
Still Not Ready?
If you are still not ready to purchase your first home, no problem. I would always recommend first time home buyers to sit down to discus their goals with a mortgage broker, like myself. This way we can assess your goals and finances to see what we can do in the mean time to get you closer to home ownership.