Buying a home takes some planning and preparation work before you get to the point of actually signing on the dotted line. Making sure what you can qualify for is the first step in making sure things go smoothly.
Here’s what you need to have provided your mortgage broker so that he or she can determine how much you can afford:
– Letters of employment and a current pay stub will get things rolling,
– Giving the broker written consent to review your credit history and
– Possibly fixing up any blemishes on your credit before you start your journey
Down payment can come from many different sources, obviously just good old savings is the simplest way and you need to provide 3 months of your bank statements to show that it is in fact your money. RRSP are usable if you are a first time buyer and currently you can withdraw up to 25000 dollars from them under the first time home buyers program. If you are not a first time buyer and withdraw RRSP then you will have to factor in that you will need to pay income tax upfront on those funds. Gifts from relatives are also considered as viable down payment, the family member must be a parent, sibling or Grand Parent. Aunts and Uncles can be considered under special circumstances.
Finding the right realtor for your situation is also important, you may want to look for some one that is a specialist in your price point. If the realtor lists mostly million dollar properties and you’re a first time buyer then its probably not a good match. Do some research and ask for references from your possible realtors, friends and family may have had an experience with someone who you may want to work with for your purchase. Also ask your mortgage broker they may have a few realtors that they know who they refer people back and forth.
Once you have found the house it is always good to have some time to make sure that things are in order before your remove your conditions. In most cases we will see 5 to ten days for removal of finance conditions. In some cases you will also need to allow time for an appraisal and again having that little bit of extra time to complete the process properly will make life easier for everyone. The more prepared you are at the beginning with documents in order then the smoother the whole process will be for everyone.