top of page
Search

Handbook for first-time home buyers

Writer's picture: LendX FinancialLendX Financial

Those buying their first home surely experience an excitement of a different level. But our handbook will keep them prepared for any ups and downs that they may face through the entire process. Have a pre-approval Most first-time home buyers are advised to use an online calculator to get an estimate of the kind of mortgage one may qualify for. While the calculator is useful it only provides you an estimate. We would recommend you get a pre-approval which is a tedious process involving the lender. The first-time home buyers would need to provide their credit score, a proof of income, down payment details et al. But before you get the final approval you need to show your intent and the ability to confidently pay the mortgage sum. On the other hand the lender must also have confidence in the property you are buying i.e. to them, your house must be worth the price you are paying for it. Don't stretch your pockets First-time home buyers have to make a down payment and it may seem substantial. While making arrangements for the down payment, first-time home buyers must ensure to keep a buffer amount towards other aspects of home buying such as house inspection. They should also have funds for immediate use towards maintenance and repair of the house such as breaks and leaks which come with a house most of the time. So how do you gather if you are stretching your pockets or not. It is a simple test: analyze if you are putting everything you have towards the down payment. If yes, you certainly are stretching. It is advisable to wait for some more time and have some buffer financing before making that deep dive. Future proof yourself Most first-time home buyers make the mistake of considering only their current paying ability for the down payment and the mortgage sum. They must, rather, also take into account their future. If you are single you would need to have some finances for your mortgages, if you are married and don't have children, you would already know having children means you would need a lot of finances. You must also think of unforeseen financial circumstances such as job losses, accidents etc. Make a deal that will last you in the longer run and not just your current lifestyle. Do not pressure yourself for 20% down payment As a first-time home buyer there is no need to pressurize yourself for a 20% down payment. The 20% down payment advantage is that you could avoid default insurance, provided by the Canada Mortgage and Housing Corporation (CMHC). Anyway you cannot avoid the default insurance only if your house costs less than $1 million since you won't be then eligible for it. Once you have explored your options are know the in and out of mortgages you would also need to know about open and closed mortgages. If you have an open mortgage you can make extra payments without paying a penalty. Closed mortgages on the other hand offer a better rate but there is no flexibility about avoiding the prepayment penalties. If you are a first-time home buyer who is in doubt or need help, do not hesitate to reach out to us at LendX Financial in Brampton, Greater Toronto Area.

11 views0 comments

Recent Posts

See All

Comments


Featured On

MortgageBrokerNews-Logo.png
MarketWatch-Logo.png
Fox34-Logo.png
TheTimes-Logo.png
DigitalJournal-Logo.png

Our Clients Say Great Things About Us

Kamal

Extremely knowledgeable and professional. Great service and on top of their game. Overall great experience and exceeded my expectations! Highly recommended!

Jose

Great job and thank you to the Lendx team... getting the right mortage for our first home.Highly recommended for first time buyers.

Ismat

I had a very good experience with them regarding my mortgage. They are very professional and have in-depth knowledge. They gave me the right advice and promptly communicated to me all the way during my mortgage approval. I would highly recommend them.

Akash

Had a great experience working with LendX. They were very professional, fast, efficient and knowledgeable. So comforting to have a professional assist you through the whole mortgage process. Excellent service.

Major K

Everyone at LendX Financial is very knowledgeable and up to date with market trends! The only words you’ll hear from them are “Approved”! Best spot in town to get approved for a loan/mortgage or for any investment advice!

LendX Financial
Mortgage Broker License # 13090

mortgage_professionals_canada_icon_lendx
unnamed.png

Follow

  • LendX Financial Facebook
  • White Instagram Icon
  • LendX Financial LinkedIn

© 2024 by LendX Financial

Created with ❤️ by UPMYSITE

bottom of page