1. Credit Management:
- Build a strong credit history by paying bills on time.
- Manage debts wisely and avoid large car payments.
- Lenders prefer two credit items with at least two years of credit reporting. The more credit available the better as it shows the ability to manage credit.
2. Saving for Down Payment & Closing Costs:
- Start early and set realistic savings goals.
- Find out if you have family willing to help you own your first home. If they are, we have strategies to make their money go further.
- Explore government programs like the First Home Savings Account (FHSA,) Registered Retirement Savings (RRSPs).
3. Early Mortgage Consultation:
- Consult a Mortgage Agent early to understand the process and explore options.
- Find out if there are any obstacles to attaining a mortgage or if there is anything you can do to make your application stronger.
- Get advice on improving finances and tailored programs for first-time buyers.
4. Income Maximization for Self-Employed:
- Understand the impact of tax returns on borrowing capacity.
- Collaborate with a Mortgage Agent and Accountant two years before purchase.
- Leverage a mortgage broker to access diverse lenders specializing in various qualification methods.
5. Understanding Local Real Estate Market:
- Consider the first home as a stepping stone onto the property ladder.
- Choose a property strategically for future equity and potential resale.
- Be willing to put in “sweat equity” and explore emerging neighborhoods.
By focusing on these steps, you’ll be well-prepared for homeownership. With a solid plan and guidance from a Mortgage Professional, owning a home is achievable.
When you’re ready to start, I’m here to help. CLICK HERE to book a meeting.