First time home buyers checklist

First Time Home- Buyer’s Checklist

So you have decided that you want to make the big plunge and buy real estate. Congratulations! Researching the process is the first step.

1.) – Create a budget – One of the first steps is to get qualified for a mortgage but another thing is to be realistic on currently where you are spending your money and if your mortgage is going to be substantially larger than your current rent how are you going to change your lifestyle to be able to afford the home. I’m enclosing a link where you can create a budget and save it online.

2.) – Get Pre-approved for your financing – Go to your bank or mortgage broker and start the process of pre-approval. Don’t confuse pre-approval with pre-qualified as they are two different things. A pre-approval means you have gone through the application process and the lender has verified your employment , income and given you an amount of mortgage that you qualify for. You will then be in a position to make an offer knowing what size of mortgage your have been approved for, interest rate and term.

3.) Down Payment – You will need a down payment, could be as low as 5{4271f5e6ffb3926f23a3c4286e041d2b49e6cd6ba737eb037e3491317ba52ecb} but if you have a smaller down payment then your mortgage will need to be insured by

CMHC and they will charge you a fee based on the amount of your mortgage that will be added to your mortgage. This link can show you what percentage CMHC would add to your mortgage if you have a smaller down payment than the typical 20 to 255.

4.) Calculate your closing costs – You will have to pay a variety of closing costs ranging from property taxes, legal fees, property inspection fees, property transfer tax (can be eliminated for 1st time home-buyers) property insurance, moving costs, etc. To work with a closing cost calculator for new home buyers click here.

5) Tax credits- You may qualify for a homebuyers tax credit of $5000. This tax credit is applied to your income tax return which could amount to up to $750. In federal tax relief. For more info click here.

If you are thinking of purchasing real estate in Nanaimo, I would be delighted to help you with your home search. It can seem like an overwhelming process but I am available to guide you through. This is a brief outline of a first time home-buyers checklist, for a more comprehensive guide please email me your contact information .