A House is made of Bricks & Beams
A Home is made of Hopes & Dreams!
How a REALTOR® can help you
*Navigate the home buying process and paperwork from start to finish
*Finding the right home in the right neighborhood at a price you can afford.
*Comparing your properties to similar properties that have sold over the last year
*Get a feel for the neighborhood including schools, parks and other amenities
*Find out if you are eligible for government homeownership incentive programs.
*Assess mortgage products and different types of lenders to see what fits your needs
*Negotiate purchase price and contract terms, such as date of possession, required repairs
*Direct you through complex contracts
*Find qualified industry professionals. such as real estate lawyers, home appraisers and home inspectors
*Plan for closing costs and other related expenses
Assess Financial Readiness:
Mortgage lenders use two calculations to help determine your eligibility for a mortgage: (GDS) Gross Debt Service ratio and (TDS) Total Debt Service ratio.
Gross debt service ratio is a percentage of your gross monthly income used for mortgage payments, taxes and heating costs. As a general rule of thumb your GDS ratio should not be more than 32% of your gross monthly income.
Total debt service ratio is a percentage of gross monthly income required to cover monthly housing costs, plus all your debts payments such as car loans, leases, credit cards, etc. Generally your TDS ratio should not be more than 40% of your gross monthly income.
Have you been pre-approved?
Getting pre-approved for a mortgage before you start looking will give you more of a realistic idea of what you can afford. However keep in mind that pre-approved amounts can overestimate what, you can actually afford to pay.
Pre-approval does not guarantee that you will be approved once you actually apply if the market conditions, interest rates or your personal circumstances change.
Do you know your credit rating?
Order a copy of your credit report to make sure it doesn't contain any errors, lenders will check it before approving you for a mortgage. A credit report is a summary of your financial history and shows whether or not you have had any problems in the past paying debts.
(Sourced from CREA )
Stay tuned for the next installment of the Homebuyer's Guide-Mortgage Options
Comment below on any advice you have with the home buying process.
Century 21 Colonial Realty Inc.