Buying your first home can be a stressful and overwhelming endeavour, especially if you do not know where to begin. While every buyer’s situation is different, there are several actions that can be taken to make your first home purchase a smoother process. To help you make an informed and confident home purchase, the lending experts at PHL Capital Corp have put together a list of tips for first-time home buyers.
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The following tips can help you navigate the complex planning stage and move forward with purchasing your first home:
The amount of existing debt you carry will have a significant impact on the amount a mortgage lender will approve you for. As a future homeowner, you do not want to be burdened by excessive debt as this can make it difficult to save money for emergencies and other expenses. That is why it is important to eliminate vehicle payments, credit card bills, and as much other debt as possible before purchasing your first home. Getting your debt under control will also allow you to put more towards your down payment, making it well worth your time and effort.
Using an online mortgage calculator can help you better understand what your payments may look like when you borrow to buy a home, though the numbers provided should be treated as a rough estimate. While it may be tempting to max out your budget on a home you love, this can result in financial strain and a lack of savings. Instead, it is best to determine what you can comfortably afford, as this will provide you with a home, financial breathing room, and the ability to build your savings. It should also be noted that in addition to the down payment, you will also need to account for closing costs, move-in expenses, taxes, and urgent repair costs (if applicable).
Several beneficial programs and incentives are available for first-time home buyers. These programs will help you reduce various costs associated with your purchase such as land transfer tax or your down payment. Incentives and programs include the First Time Home Buyers Program (BC), the Home Buyer’s Plan, and the Home Buyer’s Amount.
Before looking at home listings, it is highly recommended to contact a lender or mortgage broker to see how much you can be approved for. This will give you a solid price range to work with, allowing you to determine what you can comfortably afford.
To learn more about our lending solutions, get in touch with the team at PHL Capital Corp. We can be reached by phone at 604-579-0847 and will be happy to answer any questions you may have regarding mortgages or our application process.