Home Purchase

Home Purchase
Buying a home is a milestone in everyone's life. It symbolizes that you are independent and have achieved the stability of living a relatively comfortable life. Here are a few things you need to consider for purchasing a home.
1. Understand Your Situation and Needs
We all need shelter and security in life. A home is the best place to get it and achieve our goals in life. There is no better place than home! To start the home buying process, you need to do some planning about your housing needs and your current and future financial situation.
2. Evaluate Your Housing Options: Renting or Owning
Statistically speaking, if you need to stay in a place for more than three years, you would buy a home rather than renting a home. This way, you save money and live in a relatively stable home environment. We all have rented for living and experienced the inconvenience of frequent "relocation".
3. Know the Basics of Home Ownership
If you have decided that owning a home is the way to go, you need to understand the true cost of home ownership. You will, first of all, consider the amount of down payment for buying a property and the operating costs to maintain the property. To buy a property, you would have to put down a down payment (could be as low as 5% or 0% of your purchase price), plus 1.5% of the purchase price for government’s land transfer taxes, home inspection, legal fee and appraisal cost.
4. Know the Operating Costs of Home Ownership
On surface, you will find that owning a home is more expensive than renting a home initially. This is because that you need to pay monthly mortgage payments, utility bills, home insurance, property taxes and some other maintenance expenses. However, your mortgage payments includes considerable amount for paying down mortgage principal and your home may appreciate in the long run. Those are your money in the house.
5. Start the Home Buying Process
Buying your home is not easy. There are a few steps to follow to get your desired home and get the transaction closed smoothly. If you are a first time home buyer, you definitely need to review the information contained in this link <>.
6. Save Your Down Payment
You need at least 5% of the purchase price as down payment, plus enough for closing costs (normally $2,000-$3,000) for lawyers, land transfer and others. This money has to be saved by you or gifted to you by a relative, not borrowed from elsewhere. Banks need to see your banking records for the past three months to ensure that you have accumulated gradually the down payment.
7. Calculate Your Maximum Mortgage Amount
You need to work out how much you can afford for your monthly mortgage payment, based on your monthly income and monthly spending. To get the maximum amount you can borrow, click on this >>“Maximum Mortgage Calculator”.
Or, you can talk with a Valueland specialist to evaluate your financial situation and determine how much you can borrow on the purchase.
A mortgage pre-approval gives you a peace of mind on how much you can borrow and what the rate is. The lender guarantees the rate for up to 120 days.
You may have already your offer to purchase accepted by the seller. Then, you need a “real” mortgage. To get your low rate mortgage, talk to a Valueland specialist or click on this
Only a mortgage professional can give you the choice of several institutions for your mortgage and a multitude of mortgage products. Banks only sell their own mortgage products!