Calgary Real Estate Search

It is always important to check your credit report and score before looking to purchase a home. If your score is higher, you will be able to qualify for a higher mortgage. Be sure to check the report for any possible errors and dispute them as soon as possible. This is an important step as you do not want a faulty report to affect your ability to qualify for a higher mortgage. Once this is complete and error free, you can then move forward to the next step of finding how much you can afford.

There are plenty of resources online to help you find how much you can afford for a new home. Use an online mortgage calculator to help you estimate. During this step, you also need to take into account other factors such as how much you will be putting as a down payment, closing costs, any additional fees (legal, appraisal, inspection etc.). If there are any design or structural changes you are looking to make, it is important to take this into account as well. You can also reach out to local experts to understand how much of a down payment you will need and any helpful credits that may be available to you.

When looking for the right mortgage lender, you need to shop around. Make sure to get recommendations from family and friends and online reviews. We recommend talking to a few different mortgage lenders so you can find the best fit for you and your needs. During this time, be sure to ask plenty of questions.

Next is securing pre-approval. Pre-approval will give you a more concrete idea of how much of a loan you qualify for. If you obtain approval before you start looking for homes, this will make the sale process go much quicker. Furthermore, your offer could look more appealing to the sellers as you have already secured financing.

Make a list of your must-have’s that everyone has agreed upon. For example, how many bedrooms and bathrooms do you need? Do you need to be within a certain distance from a school or from work? Having these discussions upfront help everyone be on the same page and ensure you are finding the right home for you. After this, you can find extra qualities that make the home the perfect fit. Would you like a home with a pool or an existing office space? Make sure to take into account the rate of home appreciation in the area as well.

Now it’s time to make an offer! Many sellers price their homes higher as a tactic to open negotiations. We recommend starting five percent below the asking price and continue negotiations from there. With the help of your real estate agent, you can see how much comparable homes have sold for and make a sound offer. After rounds of negotiations and a price is agreed upon, you will make an earnest, which is money that goes in escrow to give the seller a sign of good faith.

Both fixed and adjustable rate mortgages can have an interest-only payment. What this means is that for a certain amount of time during the loan term, you’re allowed to pay only enough to cover the interest portion of your payment. You can still pay principal when you wish, but don’t have to if your budget is tight. There is a myth that with interest-only mortgages, you don’t build equity. This is not necessarily true, since you can build equity through home appreciation. The benefit to interest-only mortgages is that you increase your cash flow by not paying principal.

Your closing costs will be the next step here. This includes your down payment, title fees, appraisal fees, legal fees and inspection fees. Your mortgage banker will be able to help you understand the closing costs upfront in the initial budgeting stage so there are no surprises.