Are you ready to buy your first home? Signs You're Ready for the Leap

April 23, 2024

are you ready to buy your first home

Deciding when to buy your first home can feel like a huge leap. If you’re wrestling with the decision, here are some clear signs that you might just be ready to transition from renting to owning:

  1. Your Credit Score is Looking Good: If your credit score is 680 or higher, you’re in a great position to qualify for better mortgage rates. This not only helps with lower monthly payments but also reduces the total interest paid over the life of your mortgage. Keep up those good credit habits to maintain or even improve your solid score.
  2. Your Down Payment Savings are Stacked: In Canada, you need at least 5% down for the first $500,000 of your home’s purchase price, and 10% for any amount between $500,000 and $999,999. However, many choose to save up 20% or more to avoid the cost of mortgage default insurance. This not only reduces your monthly mortgage payment but also qualifies you for potentially better mortgage rates. Tools like the FHSA are great for boosting your savings, whether you’re aiming for the minimum required or going above and beyond.
  3. Your Income is Locked In: Having a stable income for the past two years is crucial for securing a mortgage. Lenders need to see that you have a reliable history of income and expect it to continue. Be sure to have all your income verification documents ready when you apply for a mortgage.
  4. You’re Ready to Put Down Roots: Buying a home makes the most financial sense if you plan to stay put for at least five years. This gives you enough time to recoup your investment and potentially benefit from property appreciation. Plus, it lets you build lasting connections in your community.
  5. You’ve Got a Mortgage Pre-approval in Hand: Being pre-approved means you know exactly how much you can afford before you start house hunting. It also shows sellers that you are serious and financially prepared. This can give you a competitive edge, especially in hot markets. I'm here to help with your pre-approval!

Thinking About Buying? Let’s Talk!

It’s tough to know the perfect time to step into the housing market. If these signs resonate with you, it might be your signal to get started. I chat with new home buyers daily, and these factors are common threads among those who are ready to take the plunge! So if you see yourself in these points, why not reach out? We can discuss your options and potentially get the ball rolling on your journey to homeownership.

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