Whether you are 20, 30 or 40, buying a home is a particularly important event in itself, in the sense that it requires the investment of a large sum of money, among other things. In fact, the various steps surrounding home ownership generally generate a lot of stress, particularly in terms of a mortgage loan.
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This is why many people wonder if they are really suitable for acquiring a home.
Here are five signs that will tell you if you are ready to buy a house … or not!
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1) No savings for a down payment
In short, it is essential to give a good amount of money for the purchase, if only to reduce the amount to be borrowed and demonstrate to the seller that the offer is serious. Also, keep in mind that to feel comfortable and cover the ongoing costs of a home, you need to provide more than the 5% down payment required for CMHC financing or 20% conventional financing.
Therefore, for a property worth $ 600,000, a 20% down payment would then be $ 120,000.
2) You are not tempted to find out if you are eligible for a mortgage
There are many mortgage lenders out there, all with different offerings that can make a difference of thousands of dollars on your wallet over the years.
In short, if you haven’t taken the time to compare various mortgage rate offers and financing terms, or even just sought the help of a mortgage broker who specializes in the field, this means that you may not be ready to invest in the mortgage. buying a house.
3) Not pre-approved for a mortgage
Having such a pre-approval shows the seller of the property that you are financially capable of buying a home, but more importantly it gives an idea of how much you are capable of borrowing. Depending on the institution you are dealing with, you can usually protect your rate between 30 and 120 days. Finally, in which case the interest rates would be lowered pending pre-approval, the lender will give you the lowest rate.
4) I haven’t thought about the type of house I want
Obvious to some, irrelevant to others, but know that if you haven’t thought about the style, age, size or even neighborhood of your future home, it’s probably a sign that you don’t. still!
5) Credit score too low
In order to purchase a home, the credit score must normally be above 650. It may be that by using alternative lenders, an individual can qualify for a mortgage, but at what cost?
Therefore, before buying a home, make sure you build a flawless credit rating that inspires confidence.
Advice
If you don’t have a down payment, a relative can make you a donation and it will be accepted by financial institutions.
If your credit rating is low, be sure to raise it, particularly by not exceeding your credit limit or by using only 35% to 50% of the credit you are entitled to.
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