Affording a Home: What to consider when considering a Mortgage.
For the first time home buyer
The housing market is booming in the Kootenay’s with first time homebuyers taking the leap from renting to owning. Unless you are a professional athlete or on Bill Gates’ payroll you will be financing your purchase with a significant loan, aka. MORTGAGE.
Here are some important points to review:
-Are you going to be happy in the house and the community you are considering? Research the economic conditions and livability of the area you plan on moving into.
-Are you financially prepared? Seek professional financial advice before buying a home.
-Research your ability to pay. Use the tools available on the internet like a net worth and mortgage calculator to help determine if you will qualify for the mortgage.
-How is your credit rating? Before approving you for a mortgage, lenders will want to see how well you have paid your bills or debts in the past.
-What can you afford? You will have to accumulate at least 5% of the down payment and consider that, in addition to your monthly loan payments, you need to also pay for homeowners insurance, utility bills, taxes, general maintenance and home repair costs, strata fees if you purchase a apartment or condominium…No more landlords to cut your lawn and fix any problems. This is your home!
-Research the cost to borrow. A lower interest rate may be achieved with a larger down payment, a good relationship with your bank or credit union, a good credit history…
-Research payment options and payment flexibility. By paying bi-weekly and making lump sum contributions on mortgage anniversary dates you can speed up the payment process. This means you reduce the amount of interest you will have to pay to the bank.
-Maintain a good relationship with your bank or credit union representative. They can help.
Thanks for checking out www.zippitydodog.com, the Kootenay’s most relevant source of financial information for youth.
