Stop Paying Rent and Own your Home Instead.
We often fear what we’re unfamiliar with. And deciding whether to make the leap from renting to owning can be daunting.
Becoming a home owner is a lot easier when you do just a little “homework” before looking for your own home. Here are basic steps to get you started:
See Yourself as a Home Owner
Before you start to look, visualize yourself in your new home. What it will look like, what do you want in your home, how much space you need for your stuff? Buying your home will be one of the biggest financial decisions in your life. And the advantages of owning far outweigh renting; such as tax benefits, pride of ownership, and return on your financial investment,
How Much Down Payment do You Have?
You have down payment options, as some lenders will require no down payment at all. However there are also many ways to come up with funds for your down payment and closing costs. You might consider saving your tax refund, using an existing saving such as Canada Savings Bond or some of your RRSP or taking a second job to save more quickly. An experienced Accredited Mortgage Professional (AMP) is an excellent resource of information on your options.
Which Lender to use?
An Accredited Mortgage Professional (AMP) has many different banks, mortgage companies and trust companies that they may broker the mortgage to. Much like a certified financial planner or independent insurance agent. Since an Accredited Mortgage Professional (AMP) does business with many banks throughout Canada they can send the loan to different underwriters and shop for the best rates and programs on your behalf, and which suit your individual needs and preferences.
Get a Pre-Approved Mortgage
Before you begin looking, call your Accredited Mortgage Professional and get a Pre-Approved Mortgage (not a pre-qualified mortgage). You will then be equipped with verified information about how much you can spend on your new home and the range of down payment you’ll likely make. A Pre-Approved rather than a pre-qualified mortgage involves verification of the information. The lender will ask for documentation to confirm your employment, the source of your down payment and other aspects of your financial circumstance. It is a bit more time consuming but the additional due diligence for the pre-approval carries more weight in real estate negotiations. Having a Pre-Approved Mortgage will verify to yourself and your Realtor how much you are pre-approved to spend on a home BEFORE you start your search. This often strengthens your offer.
Use A Buyer’s Realtor (also referred to as a Buyer’s Agent)
The Buyer’s Realtor represents the buyer to the seller’s realtor (also referred to as the seller’s agent). By having your own Realtor working for and with you, not the seller, they can disclose things to you about the seller (or the home) that they would be not be permitted to do if they represented the seller. You do not pay their commission – the seller does (as regulated by the Canadian Real Estate Association).
Get Educated, Reliably
An Accredited Mortgage Professional (AMP) can sit down with you and review the buying process from start to finish. They offer unbiased professional advice with your best interest in mind.
So,
When you choose an Accredited Mortgage Professional to assist you, you can find ways to get out of paying rent and get in to owning your own home.
Michele Ellis AMP, BA
Accredited Mortgage Professional