#ThreeThingsThursday: Home financing tips for first-timers

In our last video, we outlined 5 easy steps for selling your home. Today, we’re going to gear our advice to those who are new to the buyer’s market.

As a first-time homebuyer, applying for and getting your first mortgage can be an overwhelming experience.In this video, I’m going to give you four important steps to help take you smoothly through the financing process.

STEP 1: MEET WITH A TRUSTED MORTGAGE AGENT or BROKER

He or she will have access to various lenders with many different products to suit your needs. The agent/broker works for you and not the lender, and therefore has your best interest at heart.

Get a referral from friends and family, or if you already know a real estate agent, they’re usually able to set you up with a mortgage broker before you start looking.

If you’re starting your search from scratch, you can do a quick online search for a mortgage broker near you who will secure the best available rate.

STEP 2: BE PREPARED

This is where you get your financial documentation in order. You need to be able to prove to your lender that you can afford a mortgage, so you’ll need to have your income and assets ready for review.

In addition, your lender will want to ensure your income taxes are paid and up-to-date.

If possible, obtain your own credit report through Equifax or TransUnion to ensure everything is in order with the credit reporting agencies. This isn’t the time for surprises.

STEP 3: GET PRE-APPROVED

You can obtain a mortgage pre-approval at no cost to you.

The lender will check your credit history and ask for evidence of your income. By taking this pre-emptive measure, you’ll know exactly how much you’re qualified to borrow and at what rate.

A rate commitment will be provided and depending on the lender, the rate commitment can be as long as 120 days.

With a pre-approval, sellers may also consider you a more serious buyer.

And here’s a bonus tip:

STEP 4: ASSEMBLE YOUR TEAM

An experienced and tenured Real Estate Professional will exhaust all options to find you the home of your dreams.

A dedicated and reliable Real Estate Lawyer will look out for your best interests when it comes to the legal aspect of the transaction.

An ethical and thorough Home Inspector will ensure that the home you’re buying is safe and in good condition and point out any issues that might need addressing.

And there you have it! The mortgage financing process in four easy steps.


Whether you’re a first-time buyer looking to enter the market, or a seasoned investment pro looking to add to your portfolio, let the Merenda Real Estate team take you through the process and successfully address your real estate needs. With our 20+ years of industry knowledge and a client-forward approach, we’ll get you the results you want and the experience you deserve. Contact us today at 416-240-SOLD.

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