First Time Home Buyers
One step at a time
If you’re like most first time home buyers, you’ve probably looked around at all the people you know who are buying houses and wondered, how the heck did they even get started? Saving for your first home, pinning down which step to take first, and navigating all the legal jargon may seem impossible, but Your Trusted Calgary Mortgage Broker is here to help!
Step 1: Get a pre-approval
Some people believe that this step should be taken after you’ve made a budget and spoken to a real estate agent. But we believe it’s best to know what you may be approved for FIRST before you make any plans. Just because you may be able to afford a larger home doesn’t mean you’ll be approved to buy one. Contact us today to get started!
Mortgage Brokers VS The Banks
When you go to a bank, the only products you’ll hear about are the ones they are certified to sell you, and the only solutions they’ll mention are the ones that benefit you as well as the bank. But when you talk with a Calgary Mortgage Broker, you’ll learn about every lender and solution out there! And we can tell you which lenders will or will not approve you. All with one application and one credit check! We are here to compare and contrast every option available so you can make the most informed decision with the greatest degree of confidence.
Step 2: Work with a realtor
Realtors are an asset to those looking to buy their first home, especially if you are new to the housing market. They know which houses are for sale, which fall within your budget and other parameters, they know how to negotiate on your behalf, and most importantly (to some) they take care of all the paperwork.
Step 3: Make an offer
Once you’ve found the house that’s right for you, it’s time to make an offer.
Step 4: Get approved for a mortgage
Once your offer has been accepted you’ll probably find yourself fist bumping the sky, jumping up and down, or possibly squealing! Congratulations! Your dream home is nearly within your grasp. But the deal isn’t sealed quite yet. You have your pre-approval, now it’s time for the real deal, which is where your Calgary Mortgage Broker comes back in to play. Part of getting approved for the mortgage on your new home is providing a down payment of at least 5%. But where oh where will it come from?
Canada’s RRSP Home Buyer’s Program
Many first time home buyers are fortunate to have a family member generous enough to gift them the down payment necessary to buy their first home. A few buyers manage to save the down payment themselves (and a huge pat on the back for those who accomplish this!) And others take out loans. And the rest use a combination of these methods. But there is one other option that some first time buyers aren’t aware of: Canada’s RRSP Home Buyer’s Program (HBP).
The HBP allows you to withdraw up to $25,000 a year from your RRSP in order to buy or build a home of your own. Talk with your Calgary Mortgage Broker or Check out the Government of Canada’s website for more details.
Step 5: Close the deal
This step requires the assistance of a lawyer. But once all the paperwork is signed and completed, you are officially a brand new first time home buyer! Time to set off some streamers!
Step 6: Move in and pop a bottle of bubbly
Whether the process was quick and easy or long and tedious, now is the time to sit back, relax, and revel in your new home ownership! The steps taken to accomplish this task are always made easier with help from professionals like realtors, inspectors, lawyers, and most importantly, your Calgary Mortgage Broker.