First time home buyers questions

[jennifer1990]

@sean1240

• Not enough cash for down payment + closing costs
• use an online mortgage calculator to calculate your affordability
• talk to multiple mortgage brokers in your region

Overall, you don’t have enough cash if you want to do it now.

 

[signsofthetimes]

@sean1240 If numbers are not your strong suit then do the math backwards.
Tell the broker or bank, - brokers send your request for a mortgage to many institutions to get the best interest rate - banks only have standard rates to offer.
Now write on paper: what you are willing to spend.
-Down payment
-Monthly Mortgage payment
-House Taxes (approx-varies per area)
- Maximum amount of total monthly payments for all $5,000 - $6,000 max
Then the Broker or bank can reverse the amount into how much you can afford with their calculators and tell you how much of a house price to look for when you get Pre-Approved
So let’s say $6,000 at 5% for 25yr = $800,000 that would be the houses you’d be looking at or under for price range - I didn’t calculate this.

 

[sean1240]

@signsofthetimes Thank you!

 

[napayshni]

@sean1240 I just bought my first house and did it alone.

Closing costs are more than lawyer fees - they make you pay the remaining year of taxes (whatever prior homeowner paid) and other things. Keep that in mind - mine were about $2000 more than just what lawyer quoted me.

Dont open and use any new accounts. That really screwed me, taking advantage or tangerine high interest account and moving my down payment into it.

I suggest you lower your budget or save up a lot more. Also look into the first time home buyer incentive. I did that and it really helped me keep cash in hand. I know it’s not useful or available to everyone but for certain circumstances, if you can qualify, it’s a pretty good deal!

 

[greatisyourmercy24]

@napayshni Just curious but how did opening the tangerine high interest account screw you? The money is still liquid right?

 

[napayshni]

@greatisyourmercy24 It just made it take way longer to get approved. The account was so new I hadn’t gotten a statement yet, and screenshots were t good enough. Tangerine actually made a statement on their back end for me but the whole ordeal just make it take much longer for approval

 

[napayshni]

@sean1240 I used true north mortgage and they gave me an excellent rate, and were so supportive. DM me if you want my contact.
I got the run around so many times from brokers not wanting to quote me until I had an accepted offer. True north held my hand, answered my questions at 8pm, really went above and beyond and I will sing their praises forever

 

[lovinggodlovingpeople]

@sean1240 You definitely need to know about the new home program where you can loan out your reps for a deposit. Most young people cash them and pay a huge income tax penalty. I recommend you speak to a mortgage broker. They will be your best bet when it comes on finding the right mortgage.