The 6-Step Checklist to Buying Your First Home
As a first-time homebuyer, you are probably a bit apprehensive of what a good real estate deal looks like. Before you go hunting for a real estate agent, there are a number of things you should know about buying a home the first time. While a professional real estate agent will try their best to get you the best deal, it is important you understand a few things about buying a home, especially if you are a first-time buyer. Below is a 6-step checklist to buying your first home:
1. Credit Score
A good credit score will get you a competitive mortgage rate. With a higher credit score, you can expect a better mortgage rate. However, before you approach a mortgage lender, make sure your credit score is at least 740 points.
2. Research Mortgage Rates
Mortgage rates keep on fluctuating. It’s important you understand the factors that affect your mortgage rate. These include the value of the asset, mortgage repayment period, and your general debt load. There are online tools such as online mortgage calculator you can use to compute the mortgage you can afford.
3. Make a Down Payment
Show the lender you are committed to owning your first home by putting a down payment to your home. You can use your own resources or ask friends and family to help. This demonstrates to a home lender you are committed to buying a home.
4. Get Clarification from Your Bank
Looking for a trustworthy mortgage lender may be difficult, but your bank could help. They have dealt with clients just like you and they know real estate companies or individuals you can trust. You can also ask them how long it takes to have a mortgage loan approved and the applicable fees. If you want to learn more, visit Toronto Real Estate Agent.
5. Find a Trustworthy Real Estate Agent
A professional real estate agent should be able to get you the most competitive mortgage deal. Get referrals from friends and family of good real estate agents they have dealt with in the past. After evaluating a few, settle for the agent with the best deal.
6. Get Preapproved
Being pre-approved for a mortgage gives you confidence your application has a high chance of sailing through. A lender will evaluate your credit history before giving you the green light to apply for a mortgage. You are also in a better position to bargain for the best home prices.
Buying a home for the first time can be a bit daunting. However, with a bit of due diligence and proper research, you are likely to end up with a home you can afford. The one thing you need to be certain of is that the lender will scrutinize your credit score. They do this to be certain you will be able to repay the loan based on your past good credit. On your part, you should demonstrate your seriousness by putting a down payment and getting trustworthy real estate agents to help you look for an appropriate home. At the end of the day, you will be looking for a real estate agent with the best home deals.