The first-time homebuyer essential checklist
If you’re finally feeling ready about purchasing your first home, this is the article for you. I’ll cover everything you need to know from downpayment to insurance to closing costs to choosing a realtor and a mortgage agent. There’s a lot to unpack here so I’ll try to keep it simple. If there’s something I’ve missed or that you want more info on, please do not hesitate to reach out to me.
Where to start:
Set a timeline for yourself. Will you purchase this year? This month? What do you need to do in order to ensure your goal gets met?
Do you have a job with a proper salary? It’s important to know how much income your job shows on paper AND how you are paid. This is critical for your mortgage approval. This is a great link to help guide you through the stress test and Canadian mortgage rules.
Make sure your taxes are paid and up to do. If there is a balance outstanding, a lender can not proceed with the application.
What does your credit look like? You can pull your credit score from Equifax for free. This will give you a great understanding of what is showing on your report and gives you a chance to fix anything before a lender sees it.
Where is your downpayment coming from? Is it liquid or is it in an investment? Is a family member lending you the money? Your downpayment needs to have been in your account for at least 6 months OR you’ll need to provide a gift letter of where the funds came from. If you are borrowing your downpayment, you’ll need to qualify for that loan payment in addition to your other debts including the prospective mortgage.
Do you have enough extra funds to support closing costs? As a FTHB you’ll need funds for the deposit, your lawyer, utility setups, home inspector and any property tax outstanding. Plus consider whether you’ll need moving trucks, storage units or any other supplies.
Ok now that you have all of that worked out, you’re ready to proceed!
Get pre-approved!:
Getting pre-approved is crucial. You want to make sure that the mortgage professional you choose pulls your credit and reviews all worst-case scenarios with you. You want to have confidence that you will be able to make a purchase without any hiccups or delays. Be honest with your agent. It’s better to tell them the truth than to have a surprise come up when it’s too late.
Be sure to interview the agent you choose. You want to make sure they have your best interest in mind.
Once you’ve been pre-approved, you can reach out to a realtor!
Shop for a realtor:
Make sure that the realtor you choose has the following qualities:
Great referrals/testimonials to show you.
Your best interest is in mind.
The time to spend with you and explain things in detail with you.
Answers the phone or your emails in a timely manner.
Seems trustworthy, patient and knowledgeable.
Is familiar with the area you want to purchase in.
Once you’ve found your perfect home, you’re ready to contact a lawyer!
Next steps:
Find a real estate lawyer in the area that you plan to move in. This way, they’ll be knowledgeable about the area and be able to assist you easily if any issues could arise in the future.
Your realtor will send your purchase agreement to your mortgage agent and your lawyer. They will become your point of contact to ensure from purchase to close, you’re needs are being met.
Be sure your mortgage agent has all the information they need as quickly as possible in case they require anything extra such as an appraisal or income document.
Was this helpful? If you think I might have forgotten something, please let me know. If you’d like to talk further, send me an email or book a virtual appointment in my calendar. I’d love to chat more with you!
