PREPARE FINANCES
How Much House Can you Afford?
Mortgage lenders recommend you do not buy a home a. home that is more than 3 to 5 times your annual household income. If you are not purchasing a home with cash, you will need a mortgage pre-approval provided by your mortgage lender. A lender will work with you to get a loan that meets your needs. Some buyers are concerned with keeping their monthly payments as low as possible, others want to make sure that their monthly payments never increase.
Check Your Credit
Mortgage requires a good credit score. You can improve your score by:
- Paying down credit card balances
- Continuing to make payments on time
- Avoid applying for a new credit card or car loan until you have been approved
- Avoid making big purchases until you have been approved
- If possible, avoid job changes until you have been approved
Save Cash for a Down Payment & Other Expenses
In order to make your dream of buying a home a reality, you will need to save cash for your down payment, earnest money, closing costs & home inspector. get the best possible service.
- A Down Payment is typically between 5% & 20% of the purchase price
- Earnest Money is money you put down to show you're serious about purchasing a home. It's also known as a good faith deposit
- Closing Costs for the buyer run between 2% & 5% of the loan amount
- A Home Inspection costs $300 to $500
- Appraisal fee can cost as much as $350 plus HST for a full appraisal