How To Navigate Getting A Mortgage For Your First Home

confusing and stressful one, says Ram Anandappa, the Co-Founder at LendEase Direct Mortgage Investment Corporation. This is because it’s the largest financial investment most people have made up to that point in their lives. The good news says Ram is that there’s lots of advice out there on how to navigate this process successfully.

Know Before You Go

Know what you can afford before you go ahead with purchasing that is. Ram says that this is key to making sure that you are investing in a home, and mortgage, that are financially feasible for you. And it’s important to do this before you start to think about all the other elements you want in a home. It really won’t matter if you’re near the good schools and amenities if you’re not able to cover the costs to fully utilize them.

The Canadian Mortgage Housing Corporation and Rate Hub both offer calculators you can use to get estimates on what you can afford. You’ll just need to enter your income, as well as anticipated fees if you have those details. If not the calculators can help estimate these.

Ram Anandappa recommends doing this from early on in your discussions around purchasing a home to help manage your expectations.

Get Some Expert Advice

Be sure to seek multiple opinions in this case so that you can make an informed decision. For instance, your first instinct might be to go to your bank - they handle much of your other finances, so why not? Fair enough, but make that a starting point, not your final destination.

Getting the opinion of a Mortgage Broker can go a long way as they are mortgage professionals who are not affiliated with any one financial institution. They can help make you aware of the wide array of mortgage tools available to you so that you can shop around for the best rates. And you’ll have peace of mind knowing you’re getting unbiased advice. All of this can add up to thousands of dollars in savings.

Expect The Unexpected

Most often potential homebuyers are aware of some of the costs involved in purchasing a home. But not all of them. Which is why Andappa says a lot of people forget about costs beyond the downpayment.

The downpayment is significant yes, but it’s important that you plan for expenses such as legal fees, closing costs, home inspection, taxes, and title insurance. Having some more saved to create a buffer for yourself is a good practice says Anandappa. And going back to his previous piece of advice, this is also where consulting experts will be helpful. They’ve seen it all when it comes to the scenarios that will arise for homebuyers. This means they can help you proactively approach your own purchase.

Go Forth And Purchase

With Ram Anandappa’s tips in mind, purchasing your first home, and navigating your mortgage can be easier than you think. Sure there will still be some stressors along the way, but by being prepared in advance you can free up your mind to focus on the many positives of this milestone.