Many Calgary renters don’t think they can qualify for a mortgage. Others believe the home buying process is too difficult, too expensive or time-consuming. But, buying your own home is an investment in your future and, if handled properly, should be one of the best financial decisions you’ll ever make!
Over time your home will build equity. Equity provides financial security because you can borrow against it in an emergency, pay for a child’s college education, or simply watch it grow as your nest egg for a more comfortable retirement. Your rent payments only serve to build wealth and financial security for someone else! The home-buying process isn’t difficult, and almost anyone who pays rent in Calgary can qualify for a mortgage.
This series of two posts was created by Mortgages By Candice to explain the home buying process in eight easy steps. In this section, we go over the benefits of owning rather than renting, how to check your credit report, easy ways to save for a down payment and the benefits of working with a mortgage broker.
At Mortgages by Candice, we specialize in assisting you to plan your mortgage and begin building a solid financial future for you and your family.
Step 1: Visualize Yourself Owning Your Dream Home
The first step to buying your own home is to imagine yourself owning one! Imagine living in a comfortable home on a quiet street, with all the privacy you and your family have been dreaming of. Visualize having a yard, a garage, and enough room for all your stuff. Think of the tax advantages owning a home provides and imagine the pride you’ll feel as the home evolves into something uniquely your own.
Dream Big! Even if you end up purchasing something smaller, you’ll still be far better off financially than you were as a renter!
Step 2: Check Your Credit Report for Accuracy
One of the first things lenders consider is your credit; however, less than perfect credit will not necessarily disqualify you from financing. If you’ve already been turned away by a bank for pre-approval, speak with a knowledgeable mortgage broker to discuss your individual circumstances. A broker has access to multiple lenders of Calgary mortgages and more options available than a banker.
To order a free credit report from Equifax:
Call 1-800-465-7166 or download this Request Form and FAX it to 1-514-355-8502 or mail it to:
National Consumer Relations
P. O. Box 190, Station Jean-Talon
Montreal, Quebec H1S 2Z2
To order a free credit report from Transunion:
Call 1-800-663-9980 (Prompt 1) or mail this Request Form to:
Consumer Relations Centre
P. O. Box 338 LCD1
Hamilton, Ontario L8L 7W2
Carefully review your report. If you find errors contact the credit agencies immediately to correct them.
Step 3: Don’t Let Saving for a Down Payment Become an Obstacle!
When you work with a mortgage broker, you’ll gain access to lenders that offer options for flexible down payment financing. While flexible down payment options are available, it’s still recommended that you save at least enough to make a down payment of five per cent.
Some ways to save money for your down payment:
- Have a garage sale
- Save your tax refund
- Save any cash gifts you receive
- Buy savings bonds or make other small investments
- Set up a Registered Retirement Savings Plan
- Sell big-ticket items you can do without
- Take a second, temporary part-time job
- Refinance any existing property
Step 4: Work With a Mortgage Broker to Find the Right Lender
Mortgage brokers do business with multiple lenders. This means a broker can:
- Send your application to multiple underwriters and shop around for the best rate available, based on your individual circumstances
- Save you money by not charging you for points (loan origination fees)
In the second section of this post from Mortgages by Candice, we’ll explain the last four steps in the home buying process including the benefits of getting pre-approval, the advantages of using a Buyer’s Agent, how to become better educated on the home buying process, and how to get started on the road to a secure financial future for you and your family through the purchase of your own home!