Getting your very first mortgage doesn’t need to be overwhelming. We’ve been in business as a mortgage broker Toronto long enough to know how you feel. That’s why we’ve put together some first-time homebuyers tips so you don’t go astray.
Understand Your Credit Score
It’s important to remember how important your credit score is. It makes a huge difference in the amount that you can afford to pay in a mortgage and the interest that you’ll need to tack on to the number.
Through no fault of your own, you may have a damaged credit score that you’ll need to repair. One of the first ways to take a positive step forward there is make sure to pay all of your bills on time. It’s also a good idea to put in a little bit more than just the minimum payment.
Mortgage Broker Toronto Tip on What You Can Afford
We want to help you with every aspect of getting the first mortgage and that includes estimating how much you can borrow. Generally, there are a few different schedules that banks and other lending institutions use. Overall, your monthly housing costs shouldn’t be any more than 28% of you pre-tax income.
It’s always best here to do some calculations before you try to get preapproved. That way you won’t be putting the cart before the horse and falling in love with a dream house that’s really above your means.
You Don’t Need to Spend It All
Here’s another helpful tip. In some cases, the lending institution will give you more money than you need. In other words, just because you get a certain amount that you are preapproved for you don’t need to buy a house that stretches that budget right to the maximum.
As your Mortgage Broker Toronto, we always suggest you figure in other payments like property tax and maintenance.
