Navigating the mortgage process

Tips for First Time Buyers

As a first-time homebuyer, navigating the mortgage process can seem overwhelming. There are many factors to consider, from choosing the right mortgage program to finding the right lender. To help make the process smoother, here are some tips for first-time homebuyers to navigate the mortgage process:

1. It all starts with saving as big a deposit as you can. A substantial deposit can give you access to some of the best mortgage deals and the cheapest mortgage rates. It is possible to find a mortgage with a deposit of just 5%, but these deals tend to have the highest interest rates.
2. Consider engaging an independent mortgage broker: They can help fight your corner as you choose a lender or the right mortgage program in this list. A great mortgage broker will guide you through the process and help put your mind at ease to focus on your goal of owning your new home and can help you get pre-approved quickly.
3. Get pre-approved for a mortgage: Before you start house hunting, it’s a good idea to get pre-approved for a mortgage. This will give you a better idea of how much house you can afford and make your offer more attractive to sellers.
4. What should you look for when buying your first home?

Once you feel confident you can afford to buy, consider what kind of property you want and where you want to live.

Look on property portals like realtor.com to get an idea of the properties available and the price.

Make a list of priorities starting with the most important. For example: 

• • How many bedrooms and bathrooms do you want?
  • Do you want to be near local shops and parks?
  • Are schools important to you?

If you want to buy in an expensive area, consider a fixer-upper. But remember that you must account for the extra costs of renovating the house.

5. What questions should I ask when viewing properties?

Don’t be afraid to ask lots of questions. Here are some suggestions:

How long has it been on the market?

What renovations have been done?

How many viewings has it had?

How many offers has it had?

6. Also, consider the re-selling potential. It may be your dream home but will others be potentially put off by the walk through the kitchen to get to the bathroom?
7. Consider hiring an inspector – an inspection is different from an appraisal. 

Appraisals only give you and the lender a rough idea of how much a home is worth based on comparable properties in the area. 

An inspection tells you about specific problems at the property. The bonus, apart from factoring into your decision to buy the property, is that the results can be used to request

8. Choose the right mortgage program: Many different mortgage programs are available, each with its benefits and drawbacks. Some programs offer lower interest rates, while others require a smaller down payment. Research and choose a program that best fits your needs and financial situation.
9. Shop around for lenders: Not all lenders are created equal. It’s important to shop around and compare rates and fees from multiple lenders to find the best deal. Be sure to consider both online and local lenders.
10. Understand the costs involved: There are many costs involved in buying a home, including closing costs, mortgage insurance, and property taxes. Make sure you understand these costs and factor them into your budget.
11. Have your paperwork ready: The mortgage process requires a lot of paperwork, so it’s a good idea to have your documents ready in advance. This includes your tax returns, bank statements, and pay stubs.
12. Keep your credit score in check: Your credit score plays a big role in the mortgage process. Ensure you maintain a good credit score by paying your bills on time and keeping your credit utilization low.
13. Communicate with your mortgage broker: Communication is key throughout the mortgage process. Make sure you keep in touch with your lender and ask any questions you may have. This can help ensure the process goes smoothly and you get the best possible deal.

At Innova Financial Services, we work with the best mortgage brokers and lenders in the area, and if it’s useful, we are more than happy to provide recommendations to suit your needs.

By following these tips, first-time homebuyers can navigate the mortgage process with confidence and ease. Remember to do your research, shop around for lenders, and communicate with your lender throughout the process. With some preparation and effort, you can make your dream of homeownership a reality.