Jump into the deep end in becoming a homeowner in Vancouver can be equal parts nerve-racking, and exciting. And as an experienced and knowledgeable real estate agent in Vancouver who is on location, in the know, and available for questioning, the majority of questions I receive are related to how to acquire a mortgage.
So allow me to help you walk through it before having to deal with brokers or banks that can add to the nerve-racking component of home buying.
You are likely aware that you will have to make a down payment on your purchase, which will vary depending on the purchase price of your Vancouver home, and whether you are a first-time buyer or not.
First Time Homebuyers
Before deciding on the type and terms of a mortgage, you will want to figure out what you can afford to pay, which my online mortgage calculator (LINK …and side note to your mortgage calculator is that once they complete it, you should have a “sign up” prompt) can give you a good idea as to what that will breakdown to.
Know that there are 3 numbers you will need in order to determine “affordability”, which include: your monthly take home income, the down payment you have available to you, and your monthly expenditures as they currently stand.
The larger the down payment the less you will spend overall, but depending on your mortgage rate, it might be a better option to keep some of your nest egg for a rainy day. Vancouver is known to have plenty of those!
Acquiring a Mortgage Pre-Approval
A mortgage pre-approval will help address the areas I mentioned in my “Valuable Tips Vancouver Real Estate Buyers Should Know” post.
My loan calculator is a great estimator, but getting approved for a loan also requires a decent credit rating and other information including:
– Personal information similar to any required for any type of loan
– Employment history and income verification
– A list of assets
– Disclosure about debts
Once approved you will be presented with options such as a fixed mortgage, or a variable mortgage, and/or other types of mortgages that your broker or banker can help you understand, and decipher which is the right one for your comfort level.
Be sure to shop around, and don’t feel like you have to utilize your bank due to your history with them. Sometimes brokers are your better lending option as they have more available lenders at their disposal, so even if you do have spotty credit, they could still help you become a homeowner …just as I could help you locate a home in Vancouver that you might not have thought possible!