Financing Your New Home? Hear What the Experts Are Saying

Whether you are interested in a brand-new starter home or a just-built luxury condo, nearly everyone is in the same boat. Financing is an important part of the game when you are buying a home. Most home buyers will need to finance all or at least part of their home purchase, which means that paying attention to the financial and mortgage industry is vital.

If you are currently in the market for home financing, here’s what’s being said by housing industry experts.

Secure an Approval First

There was once a time when buyers would look for a home first or go house shopping without a pre-qualification. This is no longer feasible for most people. It is important to get a pre-approval or a complete approval before you get a home mortgage. Before you apply, be sure that your credit is as good as it can be and that old, delinquent debts are taken care of. Apply for a pre-approval so that you know for sure what you can afford before you fall in love with a home.

Beware of New Build Pricing

If you’re looking at newly built homes or homes that allow you to select your features, it’s important that you remain aware of how much the home you want will cost. Instead of getting the base price for a home in a new-build community, do it the opposite way. Ask for the total cost of the home with every possible upgrade, and then start scratching the upgrades off of your list. This will give you a more realistic view of how much the home you desire will cost.

Lock in a Low Rate by Shopping a Variety of Lenders

There are a number of home-buying programs for consumers in special situations. Some, like the CMHC secured mortgage program, are run by the Canadian government. Others may be through specific grants or private programs. Shop around for mortgages through different lenders to find the lowest mortgage rate and most lenient home approval program.  This will allow you to buy the home that you wish for a cheaper rate so that you do not have to make any compromises.

Home buying doesn’t have to be left to the experts, but it is best to heed their advice. If you’re looking for a single family house or a condo, figuring out the financial aspect will make your home search more pleasurable.