Congratulations you have decided to buy your first home! The process can be overwhelming for first time home buyers, but don’t worry we are here to guide you every step of the way. We will make sure you understand all your options and recommend financing solutions to get your mortgage approved at the lowest possible rate and best terms possible for you. We also work closely with real estate agents, lawyers, and insurance brokers in Regina to make sure you are taken care of from start to finish. Now let’s get started!
How to Qualify
Here are the 3 key elements you need to qualify for your first mortgage
Income is required to ensure you can make the payments. A full time permanent position with no probation period is required in most cases but if you have worked in a part time position for at least two years we can also use that income to qualify. Income that includes over time, commission, bonuses or self employed earnings must have a minimum 2 year history in order to qualify. Your income level will determine how much you can spend.
You must be able to show you can manage money. A credit check will show us your score which is determined by how well you manage and pay credit cards, loans, and lines of credit. If you have late payments, collections, or other bad debts this will significantly hurt your chances at being approved. The lenders like to see a minimum 2 year history of credit with good repayment history.
A down payment is very important when buying a home. If you have very good credit it is still possible to purchase a home with as little as 5% down payment. If you have poor credit a much larger down payment could be required (example: 20%). The down payment can come from a number of sources including savings, investments, RRSP’s (HBP), or even a gift from an immediate family member.
Quick Mortgage Pre-Approval
A pre-approval will determine how much you can spend!
Why you should get pre-approved…
The first step in the home buying process is to obtain a mortgage preapproval from a bank or lender. A pre-approval is simply a rate hold, typically for 120 days. This allows you to shop for a home without the risk of interest rate changes. The pre-approval also provides you with a purchase price for which you can shop. One of our mortgage brokers will help you acquire the pre-approval so you are confident you have the best product.