October 14, 2016
The Usocial Guide to your First Mortgage
The image of homebuyers we see most often is of a young couple, maybe expectant, maybe with toddlers in tow, showing off their new bungalow adorned with a white picket fence. This is Richmond Hill.
Well, it was. Usocial is introducing another Richmond Hill. A Richmond Hill that caters to those that seek the sleek, the provocative – those that want to break out of the mould of the stocky Richmond Hill.
You want to be independent, and with that brings forth it’s own challenges. Challenges like getting a mortgage for the first time. Here are a few tips:
Know your finances. Buying a house is one of the biggest financial decisions you can make, but you’re smart, and you’re prepared for that next big step into independence. It can still be daunting making what may be the first major financial decision in your life, and without experience, the universal rule of doing your research and consulting with professionals before you sign the offer becomes even more vital.
Know your options. If you’re single, it may be harder to qualify for a large mortgage because there’s no second income to reassure the lender. With that, women will often pay more for their mortgage. A 2011 study showed that women, on average, pay around 40 basis points higher than men. The reason? A lack of research – women tend to choose lenders based on recommendations, whereas men will seek out the best rates. So know your options. Don’t follow the mould and shop around using one of the many mortgage comparison tools, like LowestRates, RateHub, and RateSpy, and try to negotiate!
Get pre-approved. You’ve done the research, consulted the right people, and now you’re pre-approved. Getting pre-approval is an important step towards having your place filled with vintage vinyl’s and learned books, but your pre-approval is only good with the current conditions at the time of that pre-approval. Don’t go out and do something drastic with your finances – at this stage, consistency is key.
Explore getting insured. It’s about being confident without being stupid. You never know. It’s important to protect your income so it may be smart for you to explore getting insured. That means not only buying home insurance to protect against theft, or mother nature having a fit, but also protecting your salary with insurance that will help you if you’re laid off or laid up.
Budget for closing costs. In Ontario, closing costs can range from 1.5 to 4% of the final selling price, so you’re going to have to budget accordingly. “A budget is telling your money where to go instead of wondering where it went.” You’re going to need a clear picture of your financial needs, and plan for changes in the future. A budget isn’t about restrictions. Having a plan in place allows you the freedom to build that collection of well-read coffee table books and provocative furniture.