It can be very a daunting mission for the first time homebuyer in taking the necessary steps to purchase a first home. When you purchase a home, you are doing much more than making a financial investment. You are making an investment in life; learning how to maintain your home—no longer able to call the landlord. You will also discover the neighborhood and what kind of neighbors you have. Maybe even start thinking about starting a family of your own. There are a few questions every first-time homebuyer needs to ask themselves when deciding to purchase a home:
- The first and most important question is: “Why buy when I can continue to rent?” This is a very good question, and to the first-time homebuyers it appears renting is cheaper. However, rent is a complete expense; your mortgage payment goes toward the principle on your loan and a portion of the fixed mortgage can be deducted from gross income on your taxes.
- “When do I know I am ready to purchase a home?” Another good question, but the following is a checklist you can use to determine home-buyer readiness:
i) Do you have good enough credit?
ii) Have you had stable income for at least two years running?
iii) Do you have enough funds to pay taxes, mortgage and insurance on the home?
iv) Is your income expected to remain the same or increase?
v) Do you have adequate savings for a down-payment?
Mortgage Solutions Group (https://mortgagesolutionsgroup.ca/first-time-home-buyer) can help you with the answers to many of these questions as well as get you prepared for home ownership. Your mortgage broker will assist you in knowing how much you need saved for the transaction. You will need to have enough savings to cover the deposit, down payment, and closing costs.
The down payment is a percentage of the total price of the home, negotiable through the loan contract. Some loan programs allow a 10% or 20% down payments, however, you can inquire with your broker about other loan programs that allow a 3% down payment.
The closing costs are also variable and cover all costs involved in the closing of the sale. These costs can be settlements, fees charged by the lender, appraisals, land surveys, inspections, attorney fees and whatever else required to sell the home. Your broker is able to give you an estimate on these fees so you are not caught off guard.
About Mortgage Solutions Group:
Mortgage Solutions Group (https://mortgagesolutionsgroup.ca) presents the Greater Toronto Area with mortgage and financing alternatives. Brokers assist with the pre-approval, first time and construction loans.
The brokers at Mortgage Solutions Group are capable of aiding the consumer through the process of buying a home, which can consume a lot of time and be confusing. The expert team at Mortgage Solutions Group is capable of helping you, whether you are a first-time buyer or an experienced real estate professional.
Give the team at Mortgage Solutions Group a call today so that your home buying experience is less stressful and you can enjoy the encounter of achieving your dream of becoming a homeowner.
Company Name: Mortgage Solutions Group
Contact Person: Media Relations
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Address:209 – 10376 Yonge Street
City: Richmond Hill
State: Ontario L4C 3B9