6 facts that can help you buy your first home
We all dream of owning our own home and no longer paying rent. If you are like most renters, you feel stuck between the walls of a home that does not belong to you. You are trapped and cannot see how you could ever buy your own home.
It doesn’t matter how long you’ve been renting or how difficult your financial situation seems. The truth is that little-known information could help you bridge the gap and change your status from renter to homeowner. With this information, you’ll learn how to:
- Save for your down payment
- Stop making your landlord rich
- Stop wasting thousands of dollars on rent.
The problem most renters face is certainly not their ability to make a monthly payment. Everyone knows you have to meet this obligation on the first of every month. The problem is rather accumulating enough capital to make the initial deposit on a property that will be yours.
Saving this initial amount is not as difficult as you might think if you take note of the following six points.
Here are six little-known facts that can help you buy your first home.
1. You can buy a home with much less cash than you think.
There are local or national programs (such as the Home Ownership Program) to help people enter the real estate market.
You may even qualify as a first-time homebuyer if your spouse has owned a home before, as long as your name was not registered as a co-owner.
Make sure your agent is knowledgeable and experienced with homeownership programs so they can show you all your options.
2. You may be able to get help from your financial institution with your down payment and closing costs.
Even if you don’t have the down payment amount, if you have no debt and have net assets (e.g., a paid-off car), your financial institution may be able to lend you the down payment using those assets as collateral.
3. You could find a good real estate broker willing to help you.
Some sellers may agree to a second mortgage. In this case, the seller becomes more or less the lending institution. Instead of paying cash for their home, you make monthly payments to them.
4. You could open an RRSP account at a financial institution.
By borrowing money to invest in RRSPs up to the desired amount, you could benefit from a tax refund that you can use as cash. It is true that the money borrowed in this way can technically be considered a personal loan, but the monthly payment could still be minimal. This means that the money invested in your home and RRSP is yours to keep.
5. You can buy a house even if you have credit problems
If you can’t come up with the minimum cash down payment or secure a loan because you don’t have equity, lenders will still accept your mortgage application.
6. You should be pre-qualified for a mortgage before you start looking for a home.
This is easy to do and gives you peace of mind when it comes time to shop for a home. Mortgage brokers can get you written approval at no cost and with no obligation.
This can even be done easily over the phone. Much better than verbal approval, a written pre-qualification is like having money in your bank account. You get a certificate that guarantees your mortgage level, which is very useful when you finally find the house you’ve been looking for.
Consider hiring a professional who specializes in mortgages. Using their services can make the difference between getting a mortgage or being stuck with your landlord forever.
Generally, there is no charge for obtaining this information. Why on earth would you continue to throw thousands of dollars away on rent when you could take a few minutes with your agent to discuss your specific needs so that you can stop renting and start owning your own home?
This conversation won’t cost you anything. And of course, you shouldn’t feel pressured to buy a home the moment you read this, but by taking the time to explore different options and discover ways to purchase a home, imagine how knowledgeable and relaxed you’ll be when it comes time to make this important decision.
