Buying a home is one of the most important, and expensive, purchases many of us will make, and should not be taken lightly.
You may spend years saving up for the deposit and making sure your credit remains in good standing, then shopping lenders to get the best rates. And yes, you are doing everything correctly, however, there are a few other things that you should and shouldn't be doing during this time that you may be unaware of.
Here are a few tips on finances and budgeting while trying to purchase a home:
Additional Credit Cards
If you've been pre-approved for a mortgage, do not apply for additional credit cards, loans, accounts, etc. during this stage. This could negatively affect the approval process and your loan could fall through.
New Job Offer
Don't change jobs while in the loan application process. This may affect your stability and credit rating in the eyes of the lender and again, your loan could fall through. If you've been offered a new position, ask your new employer if they could wait until your loan is secured or speak with your lender to confirm this job change will not affect your loan.
A Good Agent
This may not be what you think...a good agent will not only look at your pre-approval amount but will also sit down and ask you how much you're comfortable paying each month. There are plenty of costs, such as strata fees, taxes, homeowners association fees, etc., in addition to your mortgage each month and a good agent will factor these in to make sure you stay within your budget.
Bidding Wars and paying over asking prices seem to be the norm these days so keep this in mind when looking for homes. Searching for homes below your budget will give you plenty of wiggle room when making an offer, and hopefully, leave some funds for updates or renovations.
Nothing can tell you the true value of a home like looking at the comparable properties in the area. A skilled agent can provide you excellent comparables and advise you if a home is priced correctly or not.
Having a mortgage broker shop your loan around to various lenders to get you the best rates is a no-brainer, especially if you have less-than-perfect credit. A mortgage broker will look at less conventional lenders and find different ways to have your loan funded that you normally wouldn't have access to.
There are so many ins and outs when purchasing a home that having a professional on your side is in your best interest.