Signs you are ready to buy a house!
1. You have enough for your down payment -The minimum down payment to purchase a home in Canada is 5% and this should be a natural starting point. Being able to save for the down payment shows the discipline needed for home ownership and home ownership cannot happen without the down payment. We always suggest saving for more than the down payment as unexpected life events arise and a financial cushion should always be available.
2. You can afford a mortgage payment - Being able to afford a mortgage payment is not only required by lenders but something one should feel confident and comfortable with. If clients are ready to get pre approved we naturally pre approved them which helps us understand their credit (noted below) and their ability to afford a mortgage payment. We need to consider ones ability to service the mortgage along with any other debt. If an official pre approval seems to formal or in the early stages of exploring the ability to purchase a home and afford a mortgage, I highly recommend downloading our free mortgage app
https://www.dlcapp.ca/app/scott-westlake
3. Credit - Lenders have minimum credit scores to be able to qualify you for a mortgage. They look at the score but also look closely at credit usage, limits, balances and any missed payments. We help clients identify their credit score and if help is needed have a new program called clever credit that we use to help increase it.
4. Employment - Income is a strong qualification for lenders. Tenure of employment, especially when self employed, consistency of income and the ability for that income to service the debt are very important. Clients often misrepresent income on applications. Not intentionally, but lenders look at contract versus business for self, commission income, salary, part time versus full time all very different. We will help you understand what your specific employment status will allow when purchasing a home. For the sake of this article, if you have consistent income, with some tenure you are on your way to considering buying a home.
5. Tired of renting or living with parents - A lot of buyers get sick of paying rent. Not building up equity, benefiting from the appreciation of real estate (in an ideal world and traditionally, pending location) OR you no longer with to live with your parents. Being mentally ready to take that next steps from living with family or renting to home ownership and the responsibilities that are included is a good sign you are ready to buy a home.
As a recap,
-if you have a down payment or can save for a down payment,
-have the income and employment to service a mortgage,
-have good credit
-and are ready to become a home owner,
Then these are all positive signs that home ownership may be right for you. Contact us with our forms or email,
scott@thewestlaketeam.com to get pre approved