Marriage trends and personal milestones have changed dramatically in the past fifty years. While most people use to buy their first home with their spouse after marriage, many people are now going it alone and buying their first home or condo on their own. If you have the financial security to buy your first property, then being single should never hold you back. If you need to arrange a mortgage and are going to be the only buyer signing on that dotted line, here are some helpful tips to make the process as comfortable as possible.
Get a Great Mortgage Professional
If it is your first time getting a mortgage, then hiring an experienced mortgage professional, like the ones at Lending Experts, to help you find a mortgage that works for you and secure your approval. Having a professional guide you through the process and use their connections at financial institutions to get you the best rate will help you save money in the long term and make sure that you do not end up with a mortgage you cannot afford.
The best thing you can do is get pre-approved, or speak to a mortgage professional about a reasonable budget so that you do not end up putting in an offer on a house you have to back away from. Pre-approval helps you stay within budget, lets you know what you can get in different markets, and will be a relief for the owners of the property you put an offer on, knowing that you can afford to buy.
Make a Substantial Down Payment
While you do need to set aside funds for a lawyer and other moving costs, if you can make a bigger down payment on your home then your mortgage payments will be lower, and you may not have to take out mortgage insurance (which you have to pay taxes on!). Try to aim for a 20% down payment if possible to avoid mortgage insurance, and at least 10% if lower so that your mortgage payments are reasonable.
Mortgage Insurance and Insurance on Your Mortgage
Mortgage insurance protects the lender (the bank or financial institution) in the case that you default. If you pay less than 20% down on your home then you will need to pay mortgage insurance; otherwise, this is optional. Then there is mortgage protection insurance which protects you in case you die or become disabled and cannot work. As a single person, you are the only one paying for your mortgage, and if you are in an accident or develop a disability that keeps you from working, then you will be unable to pay for your mortgage. With mortgage protection insurance, the remainder of your mortgage is paid for, which allows you to stay secure in your home.
Lend with Lending Experts
At Lending Experts, we can help you purchase your first home. If you are looking for the lowest mortgage rates in BC, then you need to see our mortgage broker. We also provide debt counselling and debt consolidation. Don’t wait, call today!