Thinking about buying a new home this summer? Now is the time to start preparing! Here are a few tips on how to do so:
• Pull your credit report: There are often errors on credit reports or issues that need to be addressed to and take time to rectify. If you go to http://www.equifax.ca/ and www.transunion.ca to pull your own credit report, it will not lower your score. It gives you a comprehensive report, detailing your liabilities and payment history. It is also important to know what your credit score is as qualifying criteria can vary based on your score. If your score is lower, there are numerous steps you can take to increase it, but it is far more beneficial to know in advance and give yourself time to work on it.
• Find your tax returns and T4’s: Depending on how you are paid, you may need to provide your last 2 year’s Notice of Assessments and/or T4 slips. Your Notice of Assessment or NOA is the letter that is sent back to from the government once you file your taxes. It will either have a cheque attached or an amount owing. You will also want to make sure that all taxes owing are paid up to date. If you do not have a copy of your NOA, you can call 1-800-959-8281 a get a free copy. You can also set up an online account at www.cra-arc.gc.ca/myaccount which gives you access to your information anytime. Both options will take several weeks, so again it is important to be prepared in advance
• Start holding on to your paystubs: You will need at least one recent paystub so you should start putting them aside in case you need them. You will also need a recent letter from your employer so you should find out your company’s policy for doing so in case it is a timely procedure
• Speak to a Mortgage Broker to see what price range you would qualify for: It is important to know what amount you qualify for before you start considering a home purchase. The way lenders determine the amount you qualify for is based on your “Debt Servicing Ratios”. It is important to speak to a Mortgage Broker instead of simply using the online calculators because there are different income and debt guidelines that may not be factored in and may alter the results of your search, not giving you an accurate representation of your financial goal
• Get your 120 day rate hold while rates are so low: Rates are currently still at record lows. Now is the best time to secure a low rate. If rates drop prior to your home purchase you will get the lower rate, but if they increase, you will be held at the low rate
Being prepared will offer you peace of mind and eliminate a copious amount of stress once you have an accepted offer and time constraints become a large factor. Contact me today and be prepared.
http://www.christinebuemann.com/
• Pull your credit report: There are often errors on credit reports or issues that need to be addressed to and take time to rectify. If you go to http://www.equifax.ca/ and www.transunion.ca to pull your own credit report, it will not lower your score. It gives you a comprehensive report, detailing your liabilities and payment history. It is also important to know what your credit score is as qualifying criteria can vary based on your score. If your score is lower, there are numerous steps you can take to increase it, but it is far more beneficial to know in advance and give yourself time to work on it.
• Find your tax returns and T4’s: Depending on how you are paid, you may need to provide your last 2 year’s Notice of Assessments and/or T4 slips. Your Notice of Assessment or NOA is the letter that is sent back to from the government once you file your taxes. It will either have a cheque attached or an amount owing. You will also want to make sure that all taxes owing are paid up to date. If you do not have a copy of your NOA, you can call 1-800-959-8281 a get a free copy. You can also set up an online account at www.cra-arc.gc.ca/myaccount which gives you access to your information anytime. Both options will take several weeks, so again it is important to be prepared in advance
• Start holding on to your paystubs: You will need at least one recent paystub so you should start putting them aside in case you need them. You will also need a recent letter from your employer so you should find out your company’s policy for doing so in case it is a timely procedure
• Speak to a Mortgage Broker to see what price range you would qualify for: It is important to know what amount you qualify for before you start considering a home purchase. The way lenders determine the amount you qualify for is based on your “Debt Servicing Ratios”. It is important to speak to a Mortgage Broker instead of simply using the online calculators because there are different income and debt guidelines that may not be factored in and may alter the results of your search, not giving you an accurate representation of your financial goal
• Get your 120 day rate hold while rates are so low: Rates are currently still at record lows. Now is the best time to secure a low rate. If rates drop prior to your home purchase you will get the lower rate, but if they increase, you will be held at the low rate
Being prepared will offer you peace of mind and eliminate a copious amount of stress once you have an accepted offer and time constraints become a large factor. Contact me today and be prepared.
http://www.christinebuemann.com/
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