Being a first time buyer, if you don’t have enough knowledge of what to do and where to start from, then you are at the right place. Are you short in cash or want some financial assistance in the form of mortgage? Let NB Mortgage offer you the best financing option. Since they have been in this industry for a long time, they understand the difficulties arising in getting mortgage for purchasing a home. Their experts can satisfy all types of financing needs and work as per the expectations of clients. You will also find satisfactory answers to all of your questions, including:
- Where should I start from?
- How much can I afford?
- Can I find a perfect place to live in?
- Am I eligible to apply for a mortgage?
In order to follow every step in the most efficient manner, you always need to hire an expert for planning and budgeting. First of all, you need to consult with a mortgage broker to know:
- Maximum purchase price you can afford
- Monthly expenses to operate regular home tasks
- Closing costs and down payment
Your broker will always give correct information with fruitful advice according to your maximum purchase price and describe the monthly expenses you will paying. Closing costs and down payment are the areas that need your attention. So let’s discuss them.
For every first time home buyer, down payment is the biggest obstacle because they need to pay a certain percentage of the home’s price- normally as low as 5% or as high as they want. So, it is always advisable to evaluate your budget to pay before agreeing upon an amount. You can either get funds for down payment from RRSP in the form of First Time Home Buyers Incentives, resources like gifts, equity grant from municipal, federal or provincial agency or your own savings. The amount and source should be known by the lender as per your application. Stable income and good credit history will also play an important role in getting a mortgage.
This expense normally differs from one application to the other because applicants have different sources and amount of down payment and their First Time Home Buyer Incentives are even not similar. So, while requesting for a mortgage, you will be required to have some closing costs, like:
- PST, HST or GST for new construction (if not included in the home’s purchase price)
- Appraisal fees
- Tax applied on the mortgage insurance premium (when mortgage is less than 20 percent)
- Home inspection
- Prepaid condo fees
- Property tax holdback
- Status certificates for condos
- Utility hook-up fees and deposits
- Land transfer tax
- Lawyer’s fee based on survey, title insurance etc
- And in the last, real moving cost (moving van, time of work, etc)
Purchasing a home for the first time is obviously a big investment and you wouldn’t want to blindly spend it anywhere. You should always contact NB Mortgage for expert consultation and to remain informed and clear.