The problem with most renters is not the ability to meet a monthly payment. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulating enough capital to make a downpayment on something more permanent. But saving for this lump sum doesn't have to be as difficult as you might think.
6 Little Known Facts That Can Help You Buy Your First Home
Consider the following 6 important points:
1) You can buy a home with much less down than you think.
There are usually special provincial or federal government programs (such as RRSP and 1st time buyer programs) to help people get into the housing market. You can qualify as a first time buyer even if your spouse has owned a home before as long as your name was not registered. It's our business to stay informed and knowledgeable in this important area, and we'll gladly explain existing programs to help you understand your options.
2) You may be able to get your lender to help you with your down payment and closing costs.
Even if you do not have enough cash for a down payment, if you are debt-free, and own an asset free and clear (such as a car for example), your lending institution may be able to lend you the down payment for your home by securing against this asset.
3) You may be able to find a seller to help you buy and finance your home.
Some sellers may be willing to hold a second mortgage for you as a "vendor take-back". In this case, the seller becomes your lending institution. Instead of paying this seller a lump-sum full amount for his or her home, you would pay monthly mortgage installments.
4) You may be able to create a cash down payment without actually going into debt.
By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a down-payment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end.
5) You can buy a home even if you have problems with your credit rating.
If you can come up with more than the minimum down-payment, or can secure the loan with other equity, many lending institutions will consider you for a mortgage. Alternatively, a vendor take-back mortgage could also help you in this situation.
6) You can, and should, get preapproved for a home loan before you go looking for a home.
Preapproval is easy, and can give you complete peace-of-mind when shopping for your home. Mortgage brokers can obtain written preapproval for you at no cost.
How A Professional Home Inspection Will Help To Sell Your Home
Having your home inspected by a professional home inspector before you list it for sale can do a great deal to improve its sales appeal
A pre-listing home inspection, preformed by a member of the Ontario Association of Home Inspectors (OAHI), will disclose any major defects in the home's physical structure or with its heating, electrical or plumbing systems.
With this critical information, the homeowner can then choose to repair any major problems in order to boost the property's potential selling price, or perhaps the home could be listed at a more reasonable price in its present condition.
In either case, this thorough examination of your home's condition coupled with the inspector's complete written report, can provide a persuasive sales tool for any homeowner.
A Checklist To Consider When Buying Or Refinancing A Home
To make the process of buying or refinancing a home a little easier, we have prepared this list of information needed to complete your home loan application. This is not an official requirement of any agency or lender, but using the checklist can help you make your loan application go more smoothly and quickly.
Please remember that the listed information is needed for both the borrower and co-borrower.
Mortgage Corp. Financial Services Inc. wants to make home buying the pleasure it should be. We want to work with you to make the best investment possible. Just let us know how we can help!
The following information will be needed to complete the application we will send you. The additional items may be faxed or mailed to our office.
Complete address for the last two (2) years, names and addresses of landlords. All employment for the last two (2) years, name of company, address and person to contact.
2) List of Assets
Checking account numbers and balances. Savings account numbers and balances. Names and certificate numbers of stocks and bonds. Face and cash value of life insurance policies. Location and amount of retirement funds. Year, model and estimated value of automobiles. Real estate - property type, value, amount of liens, payment amounts.
Two (2) Current Pay Stubs. Two (2) years T1 Generals or T4's or Tax Assessments.
4) Self Employed or Commission Basis
Two (2) Years Tax Returns (signed). Year to date profit and loss statement.
5) Your Application Appointment
Bring to the appointment: Agreement or Purchase and Sale.
6) Bankruptcy Ever Declared?
Copy of your discharge papers and handwritten explanation of the reason for the bankruptcy.
Any income used to qualify for a home loan must be verified. The fact that you have the funds for your down payment and closing costs must also be verified.
All information given on a home loan application is treated in a very confidential manner.
Some Important Website Links
- CAAMP - Canadian Association of Accredited Mortgage Professionals - providing professionalism in Canada's mortgage industry through enforcement of a code of ethics, enhanced programs, informative publications and improved public profile.
- Canada Mortgage and Housing Corporation - helps house Canadians through social housing, market housing and housing support and research.