How do I Get a Mortgage?
The first step to your home is knowing how much you can afford. You don’t want to fall in love with a property only to find out it’s outside your price range, or needs so much work you’d be better spending more if you could.
Getting a Mortgage Pre-Approval from your bank/ lender will tell you how much of a mortgage they can give you and how much the will cost you monthly. This gives you
- Peace of mind knowing you can afford homes you view on the market, and won’t have problems.
- Shows sellers that you are a serious, prepared buyer – which gives you the edge when making an offer.
You can arrange for a mortgage pre-approval with your bank or by working with a good mortgage broker. I’m well-connected and can recommend one to make sure you are in good hands.
How Much Home Can You Afford?
Banks and lenders use specific criteria such as credit history employment status, and your savings for the down payment to determine what you can afford. In a nutshell they base what you can afford on a payment of about 1/3 of your gross income, and then they factor in your debt load. Their role is to lay the ground work for you to prepare for purchase.
Your downpayment should be 5% or more of the purchase price of the home. Have more questions about arranging financing? Please use the form below or call or email me.