It can be daunting for first-time homebuyers to make their way through this complex process. However, with our guidance, you’ll know more about what to expect and what to do. If you are a first-time homebuyer in the Toronto area, here are some things that will help make the process easier.
- Down payment. Before you even begin to shop for a home, you’ll need to save up for the down payment. The more money you can put forward as a down payment, the easier it will be to get a mortgage. It will also give you more equity in the home right away. In Toronto, you need to have at least 5 percent of the cost of the home, but the ideal is 20 percent.
- Pre-approval. Getting access to the money you’ll need to pay for the home is one of the most important steps to homeownership. The majority of Torontonians take out a mortgage to cover the cost of a house. However, before you apply to your bank for a mortgage, get pre-approved first. The pre-approval process is similar to the one you’ll go through when you actually apply for a mortgage, and gives you a good idea of how much you’ll be able to get. That is vital information when you are hunting for a home because you’ll be able to narrow down your options based on what you can afford to buy.
- Wish list. It is helpful to sit down and create your home wish list. What kinds of features would you like to have? How many bedrooms do you need? It is also important to write down your nice-to-haves and a list of things that you don’t want in your new home. These lists can give you clarity about what type of house you should consider.
- Work with professionals. When you buy a home, you won’t have to do all the work yourself. Hire a real estate professional to help you find a home, a mortgage professional to help you afford it, and a lawyer to ensure everything is above board. Getting a mortgage can be a complex process and you have a variety of options, including a fixed interest rate mortgage in Toronto. To fully understand the best option for you, ask your mortgage professional.
- Making an offer. One of the most exciting parts of house hunting is when you find your dream home and make an offer. In Toronto, your offer will need to be submitted in writing. It will become part of the Agreement of Purchase and Sale, which is a legal document. The Agreement includes:
- How much you are willing to pay for the home
- Down payment amount
- Closing date
- Conditions that need to be met for the deal
- Any items you want included, such as a washer and dryer
- Closing the deal. Once all the conditions have been met, the deal can be closed. That is the moment the ownership and possession of the property transfers from the seller to you.
If you are interested in learning more about getting a mortgage in Toronto, call Northwood Mortgage™ at 888-492-3690 or contact us here.