Buying Your New Home


There are a few steps you should follow when deciding to buy a home

1. Find out how much home you can afford, you can use our handy mortgage calculator to show how much you can afford, it is based on your income, an average interest rate and length of the loan.

2. Know your debt-to-income ratio, the higher this number the less likely you will qualify for a home loan. If your ratio is more than 36 per cent you need to reduce your debt before buying a home.

3. Know your credit score, higher credit score means better loan rates, if your rate is low there are ways to improve your score before you get pre-approved for loan.

4. Get pre-approved. Some real estate agents won’t work for you unless this step is done, there is nothing worse than finding that perfect home and then finding out the bank denied the loan application. Going through the mortgage approval process can be frustrating, so be prepared. In addition to all the paperwork, you have to answer a lot of very pointed questions about your income, net worth, and credit worthiness. If you have a 20 percent down payment, a high credit score, and a steady job, then you have a better chance of being approved for a loan.

5. Contact your Real Estate agent. Once you’ve improved your credit score and know how much home you can afford, you are ready to contact you real estate agent. Your agent acts as your representative, provides you with information about market prices, and helps you find a home.