New Home Buyer Finance Tips
Quick Tips for First Time Home Buyers
The buying season is slowing for the fall, and many buyers are moving their purchase dates to the spring. And who blames them, no one wants to move in the winter.
There are some common mistakes people make or things they don’t take advantage of when preparing to purchase a home on the mortgage side of things. The following can make a big difference in your purchasing power.
Keep your credit clean, just because you meet the minimum Beacon score requirements, doesn’t mean a lender MUST approve you. Make your payments, stay on top of your credit.
Do not finance any big-ticket items. All monthly payments will report on your credit and will be included in your debt servicing ratios (your ability to pay an increased debt load). A car payment of $500 per month will cancel out up to $100k in purchasing power.
Think about your down payment. Lenders are strict on the amount of time that funds need to be in a buyer’s bank account. If you are selling an asset to fund the down payment, retain documents (bills of sales, receipts, etc) If the money is being gifted to you, ensure the gift giver is willing to sign a letter declaring the gift (proving you don’t need to repay it in the future).
These are just quick tips that we see negatively affect buyers all the time. If you want an in-depth analysis of your purchasing power and some broker insight, use the following tool:
https://mathesonfinance.com/getqualified
Best of luck in preparing for your new home
Cameron
