Buying your first home is probably one of the most exciting moments in your life. You are finally ready to be on your own and invest in not only a property but a home. You can almost see yourself sitting at your kitchen table or lounging on the couch in front of the TV, but it is important to slow down, take your time, and understand all involved with buying your first home.

When you are new to the homebuying process, it can be stressful and frustrating. After the initial excitement subsides, you will be faced with questions, concerns, and decisions about the actual purchase. Questions such as how do I obtain a mortgage and what are the costs involved? Or, how much will I qualify for, and how much money must I put down? These types of questions can have several different answers depending on each home buyer’s financial situation.

Our professional mortgage brokers at SaskEquity are not only qualified and happy to answer all of your questions, but they are trained and dedicated to finding you the best mortgage options available to fit your personal needs. We are here to help first-time homebuyers understand every step of the mortgage process, from pre-approval to the final escrow.

So why not let us alleviate the frustration and stress? We will work hard to find you the right mortgage because it is as important as you finding the right home.

Questions You Should Be Asking

The following is a list of questions often asked by first-time homebuyers, so keep them in mind when speaking to one of our qualified SaskEquity mortgage brokers. We will provide you with as much information as possible to make your home buying experience effortless and trouble-free.

• How much can I afford to spend on a new home?
• How much money do I need for a down payment?
• Where can I get money for my down payment?
• How do I get my first mortgage or will I even qualify?
• Can I qualify for a mortgage if I have bad credit?
• What costs are associated with getting a mortgage?
• What can a mortgage broker do for me?
• Do I require a mortgage broker’s services to obtain a mortgage?
• How long does it take to be approved for a mortgage?
• What happens after I am approved for a mortgage?

Knowing Your Credit is High on the Homebuying Checklist

Having money available to spend on a home is obviously important. Without those funds, you can’t purchase a home. It is as simple as that. But there is another factor to your finances that is just as important: your credit score.

Lenders look at your credit score to determine your trustworthiness as a borrower. Your credit score is the window that they look through to determine your trustworthiness. It shows your payment history, derogatory remarks within a specific period and generally tells them how good you are at paying your bills.

Knowing your credit score is important. Thankfully, there are ways to check your score regularly. See what your score is, see where the downsides are, and know what you can do to improve your score as much as possible.

While it is possible to buy a home with a bad credit score, it will make the process substantially more difficult. Moreover, a poor score can mean much higher interest rates. Those interest rates can cost you thousands over the life of the mortgage.

Monitor your credit score and see where you can make improvements if your score is not great. Going into the home buying process with a good credit score will only arm you with another tool to get the best rates possible.

Knowing your credit score is important. Thankfully, there are ways to check your score regularly. See what your score is, see where the downsides are, and know what you can do to improve your score as much as possible.

While it is possible to buy a home with a bad credit score, it will make the process substantially more difficult. Moreover, a poor score can mean much higher interest rates. Those interest rates can cost you thousands over the life of the mortgage.

Monitor your credit score and see where you can make improvements if your score is not great. Going into the home buying process with a good credit score will only arm you with another tool to get the best rates possible.

Set a Budget in Your Checklist

Budgeting goes hand-in-hand with the previous section. When you have a good idea of what you can afford in a mortgage, you can then budget accordingly. Having a proper budget ahead of time can be invaluable when it comes to your finances.

The budget is two-fold. Firstly, know what your budget is in the purchasing cost. You may have a set number in mind, but several underlying costs can substantially eat into that purchase price.

Be aware of the fees involved. There are transfer and home inspection fees. There will also be insurance and property taxes. If you put down less than 20% of the home’s purchase price, you will likely need mortgage default insurance. And that’s all before any maintenance, repairs, or home improvement costs come into play.

There is something called “house poor.” It means that, yes, you can afford the mortgage but not much else. What good is having a house if you can’t afford to live a comfortable life? Even if it means finding a home that costs less, it is a good idea to weigh your budgets so that you can afford other bills, furnish the home, etc.

With all of those factors in mind, you can map out your monthly budget. A monthly budget is just as important as determining your overall purchasing power. That monthly payment is what you will owe regularly. If it hinders your ability to live, then consider your options.

Know Your Financing Options

Having a mortgage broker on your side is certainly an invaluable tool. Their knowledge of mortgage products can help infinitely during the homebuying process. But that doesn’t mean you should go into the home buying process without knowledge of your own.

Do your research on the financing options available to you. If you are a first-time homebuyer, be aware of any potential first-time homebuyer programs or tax credits available. Know the difference between fixed and variable and what they can do for you.

By arming yourself with this knowledge, you will be better positioned to ask the pertinent questions. When you know the questions to ask, you can better understand the entire mortgage and home buying process.

The best mortgage product for you may be different from the next person. Know what your needs are in a home and research accordingly. Then, you can discuss with the mortgage broker to see if that product is the best fit.

Getting a Pre-Approval Should be on Every Homebuying Checklist

Your finances are important. A credit score is important. Your down payment is important. But those are all just pieces of the puzzle. A pre-approval can be the key to unlocking the entire homebuying process.

A pre-approval is important for several reasons. For one, it puts (in writing) how much you can afford to borrow on a home. Not a range, not a guess. You know exactly the amount you can get approved for through that lender.

A pre-approval also locks you into an interest rate as you shop. If you can get great rates in your pre-approval, you can rest easy knowing those rates will stay that way up to 120 days. Being able to shop with your approved amount and interest rate in tow can be a huge relief during the homebuying process.

Moreover, a pre-approval puts you in a better position with the sellers. That pre-approval shows that you are serious about buying a home, giving you more negotiating power when making an offer on a home. It also shows that you are capable of getting financial approval. These factors can give you a better chance of offering on a home than doing so without a pre-approval.

Armed with what you can afford, your interest rate, and negotiating power, there is no stopping you.

Saving for a Down Payment is Crucial

Now that you know your finances and where your credit stands, it is time to talk about the down payment. The down payment is perhaps the most important aspect of buying a home. It can dictate a lot of other factors and even help mitigate some less-than-stellar ones.

In Canada, the minimum down payment is 5% of the home’s purchase price. Keep something in mind, however. Anything under 20% down will likely require a mortgage default insurance premium. That cost can be in the thousands. The good news is that it is combined with the price of the home to form a single monthly payment.

The more that you can put down, the better off you will be. The amount that you put down upfront dictates what you will need to borrow from the lender. The less you have to borrow, and the more favourable the terms will be for you.

Not only does having more down upfront means borrowing less, but it can mean better rates. The less you owe upfront, the more favourable you are in the eyes of the lender. That can result in better interest rates, which can save you substantially over the life of the loan.

Plan as far ahead as you can to give yourself time to save. Any bonuses, lump-sum payments, or tax refunds can help bring your total up rather quickly. The key is to save as much as you can for a down payment so that you can give yourself more favourable lending terms.

A Mortgage Broker Can Help with Your Homebuying Checklist

With your finances, credit score, and down payment lined up, you can officially begin the process of buying a home. But there are so many options out there; where do you start? What about mortgage products? Which one is right?

There are a million more questions just like those. Thankfully, there are professionals out there whose job it is to answer them. A mortgage broker can be the key to finding the home that fits your wants and budgetary needs.

You can talk directly to an individual lender, but there is a major caveat. You only see the products that a specific institution offers. That may be limiting yourself substantially by doing that, and it can even cost you major savings in interest.

Mortgage brokers have access to a wider array of mortgage products from banks and lenders everywhere. Having better access means getting a better idea of the best products out there. That makes it easier to get the best possible rates on your mortgage.

The best part? Most mortgage brokers are free to the buyer. They are paid when you sign up for a mortgage with the lender. When that happens, the lender pays out their fees. There are some questions about loyalty but for the most part, having a mortgage broker on your side is rarely a bad thing.

Optional Homebuying Checklist Item: Real Estate Broker

This step is entirely optional. The internet has made it easier than ever before for potential homebuyers to do their own research on homes. That said, it is a good idea to bring in a real estate broker to aid in your search.

Much like mortgage brokers, real estate brokers have a vast knowledge of the market. They may be able to find options that are not yet listed on those homebuying websites. They also may have relationships with the various banks and lenders, helping offer inroads that you would not otherwise get.

Most importantly, real estate brokerages will do all of the necessary research, draw the contract up, and perform all of the small, time-consuming activities that you would otherwise need to undertake. It isn’t a necessity but having a real estate broker is certainly a good idea.

Find the Right Home

You are now properly equipped to find the home that you have been wanting. With all of your ducks in a row, you can enjoy the process of seeing homes and determining what fits you best. It makes the process less stressful and far more enjoyable.

SaskEquity Can Help with Your Homebuying Checklist

If you have any questions or concerns, SaskEquity Mortgages is always available to answer them. Our team of mortgage professionals has been helping Canadians for years. Whether it is about improving your finances or finding the right brokers, we can help.

That is what makes the homebuying process truly successful: having the right help. Super Brokers will work diligently to make sure that we meet your home buying needs so you can find the property that suits you best.

Let us make your dream of owning a home come true today. Give us a call or simply fill out our convenient and secure online application form because finding you the right mortgage is what we do at SaskEquity Mortgages.