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New Kid on the Block – An Intro to First-Time Homebuying

Purchasing your first home is exciting and a life goal for many people. Whether house-shopping alone, with a partner or your whole family, there is a lot to consider beyond just how many bedrooms you need. Take some time to evaluate your current situation and your dreams for the future, and let these helpful tips guide you towards a purchase you’ll be happy about.

What Are You Working With?

To determine what you can buy, dig into the nitty-gritty such as your sources of income, debts and liabilities, and the cash you have saved for your down payment. To qualify for a conventional mortgage, you will need at least 20% of the purchase price of the home to put towards a down payment – however, if you don’t have 20% saved, you may still have options available to you, such as a High Ratio mortgage. Be sure to keep an eye on current interest rates too, so you’ll have an idea of what to expect when the time comes. Those mortgage payments will soon be coming around like clockwork, so having a clear picture and knowing exactly what you can afford will help you to avoid biting off more than you can chew.

What Do you Want?

Once you understand what you have to help you on your path to homeownership, it’s time to consider what you want! This is the fun part - dig into real estate listings in the areas you’ve got your eye on. Look at the prices on the types and sizes of homes you are interested in. Consider your personal timelines for the move and give some thought to your future plans to make sure any home you pick will suit your growing needs. Not everyone is a DIY expert, so think about whether or not you are willing to grab a “fixer upper” to save some cash, or if you need something move-in ready.

How to Get There

Before you start officially house hunting, you’ll want to speak with a representative at Tandia about current mortgage options and getting a mortgage pre-approval. A pre-approval, based on your income and current situation, will let you know exactly how much home you can afford. This can help you feel more confident when working with a real estate agent and looking at homes – and you’ll be able to act quickly if something does catch your eye!

Save Harder with an FHSA

If you’re just starting out with your homebuying dreams and are looking to build your down payment, opening a First Home Savings Account (FHSA) with Tandia is a great way to get started. An FHSA is a tax-free savings account designed specifically to help you save for the purchase of your first home. And the best part? Your contributions into your FHSA reduce your taxable income (up to a lifetime maximum of $40,000), and you can withdraw the money tax-free for any qualifying home purchase. Now that’s a win-win! Visit our site for full details.

We’re in Your Corner

Remember to reach out to us with your mortgage questions during this process, because we’ve got your back. From mortgage approvals and financing to saving for your down payment, the staff at Tandia have a wealth of knowledge to help guide you through a comfortable mortgage experience. You’ll be walking in that new front door in no time!

 


For more articles like this one, check out MONEY MINDSET.

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Fall in love with your mortgage when you finance with Tandia! Choose from our 5-year fixed high ratio mortgage at 4.79%* or our 3-year closed fixed rate mortgage at 5.19%* for your perfect mortgage match. Whether shopping for a new home or looking to renew your current mortgage, you’re in great hands with Tandia. With the right connection – you too can love your mortgage.

*O.A.C., additional premiums may apply in cases of a refinance, extended amortizations, non-owner occupied, or other instances where application details may warrant it. Legal and appraisal fees may apply. Interest is calculated half-yearly, not in advance. Rates are product-specific and subject to change without notice. Some restrictions apply. These Annual Percentage Rates may only apply if there is no cost of borrowing other than interest and is based on blended payments of principal and interest. A high ratio mortgage is applicable where a borrower places a down payment of less than 20% of the purchase price of a home.

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What is an FHSA - First Home Savings Account?

Unlock your path to owning your first home. An FHSA is a tax-free savings product designed to assist individuals in saving for the purchase of their first home. I

Your contributions reduce your taxable income (up to a lifetime maximum of $40,000), and you can withdraw the money - tax-free - for any qualifying home purchase.

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