How to Buy a Home

For the many of you who are planning on getting a mortgage or if you are a new mortgage owner, it is imperative to have things in order. The two golden rules are making sure the costs for your mortgage, property taxes and insurance are no more than 36% of your gross income; and making sure you budget, i.e. devising a plan to keep your spending below your income over the long term.

As a homeowner, or prospective one, you can never have too much information. Check out these tips on being a successful homeowner:

• Pay on time

  Always pay your mortgage on time. It’s one of the best things you can do to maintain healthy credit. If you are concerned about your ability to pay your existing home loan, talk to your lender.

• Learn what your payment covers

  Your home payment includes payment of principal, interest, and in many cases estimated property taxes, and homeowner’s insurance (collectively known as “PITI”), plus any homeowner’s association dues or private mortgage insurance if applicable.

• Jump start your savings

  If you don’t have the required down payment saved, which could vary depending on the type of home loan you select and the overall price of the house you want, see our tips for how to jump start your savings.

• Find out how to improve your credit score

  Consulting with a credit counsellor or financial advisor on your personal situation is a good method for learning how to improve your credit score.

• Be upfront with price range and preferences

  When examining your loan options, be sure to let lenders know the price range and type of home you want to buy. Rates and terms for single-family homes are often different than rates for condos or second homes.

• Consult with your agent

  Work closely with your real estate agent for the best price negotiation strategies.