Be Ready To Seize The Moment Tips For First-Time Homebuyers
While some first-time homebuyers may think the first step to home buying is house shopping itself, it’s important to take some preparatory steps before starting the house hunt.
Here are some tips to help you be ready to “seize the moment” when you spot the perfect house: SAVE THAT DOWN PAYMENT The first step is to ramp up savings.
The more of a down payment you have, the less you’ll have to borrow. And, if you have at least a 20% down payment, you won’t have to pay mortgage default insurance premiums*.
Begin building a down payment by creating a budget and deciding how much you can save each month (Check out Scotiabank’s Money Finder Calculator). Even $100 per month can grow into a sizable amount over time.
KNOW HOW MUCH YOU CAN AFFORD? Lenders typically calculate your ability to afford a mortgage based on traditional debt-to-income principles relating to your monthly housing costs, your family’s gross monthly income and your other debt obligations, including loans and credit cards.
Try using an online mortgage calculator, such as Scotiabank’s What Can I Afford? Tool to get a sense of what you can afford.
BE READY TO MAKE AN OFFER Once you’ve set your savings plan, and determined how much you can afford, getting preapproved is next1.
This is important, because if you find the perfect home, you may need to act quickly.
With a preapproved mortgage, sellers know that you’re creditworthy, and you have the ability to make an offer on the spot.
Scotiabank offers a variety of borrowing solutions to meet your needs and can provide you with preapproved mortgage financing at an interest rate guaranteed for up to 120 days from the time that financing is arranged.
Talk to a Scotiabank Advisor about the mortgage that’s right for you. For more info, visit scotiabank.com/homeownership.