How To Get Mortgage Approved As A First-Time Home Buyer In Abbotsford & Surrey?

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Planning to buy your first home? Congratulations on stepping ahead to your dream of homeownership. Abbotsford is a multicultural city with a vibrant nightlife and stunning landscapes. 

As a first-time home buyer in Abbotsford, you must be excited to secure a home-buying deal and own a place you can call your own home. 

When it comes to home buying, one of the crucial aspects to focus on is securing a profitable mortgage deal at a competitive interest rate. If you are new to Canada and need help with mortgages, this blog provides the insights and guidance you need to make the right mortgage choice and the important factor that can impact your decision.

What Is A Mortgage?

Mortgage refers to a loan that a lender or a bank provides to an eligible homebuyer with a motive of financing their home purchase. Being a first home buyer, you should be well versed with the types of mortgages, loan options available, interest rates, and repayment terms before finalising a finance or loan deal, typically called a mortgage in Canada.

First Home Mortgage

Tips On Getting Your First Home Mortgage Approved

1. Work With A Real Estate Broker

If you are a first-time buyer, you may find navigating the mortgage process difficult. A real estate broker in Abbotsford can ease the complex process for you. Acting as a middleman between a homebuyer and a potential lender, a broker can help find the best mortgage deals that completely align with your financial goals. Some other benefits of getting your mortgage approved by a mortgage broker in Surrey include:

  • Access to a wide network of lenders
  • Custom mortgage recommendations
  • Expert property buying guidance
  • Apply for first-time buyer incentives

2. Assess Your Financial Situation

To make sure that buying a home will be no burden on your pocket, it’s important to evaluate your financial situation beforehand. First of all, review your credit score to find out the mortgage terms you would be asked to comply with. Usually, a high credit score means a better interest rate and favorable loan conditions. 

After that, assess your finances, including your income, savings, and debts. Your mortgage value is determined based on your debt-to-income ratio. Once you are clear about how much mortgage you are eligible to apply for, you can start with your house hunt.

3. Get Your Mortgage Pre-Approval

For first-time homebuyers, the utmost important aspect to consider is getting pre-approved for a mortgage. A mortgage broker in Abbotsford can get you pre-approved for a mortgage as your first step to homeownership. This involves providing the lender with your financial information and checking the credit score to get pre-approved for a mortgage.

By getting pre-approved, you’ll not only get a clear idea of your mortgage amount but can also make a serious bid on a property you are interested in buying. 

4. Explore All Mortgage Options

Being a first home buyer, you can get access to a number of government schemes and grants that reduce the financial burden on your pocket. Apart from the government schemes and grants, you can explore the options offered by a local mortgage broker in Surrey:

  1. Fixed-Rate Mortgages: The interest rate remains constant throughout the loan term.
  2. Adjustable-Rate Mortgages (ARMs): The interest rate fluctuates based on market conditions. 
  3. Government Programs: You may be eligible for various government programs and incentives.

5. Find the Right Mortgage Lender 

Mortgage brokers work with a network of lenders to come up with a number of mortgage choices for a homebuyer. To end up making a fair choice, it’s essential to consider lenders as well as the broker’s experience, reputation, and track record of helping first-time home buyers. 

Clear communication and personalized guidance is the key to making the right mortgage choice. You can also research online reviews and testimonials that provide valuable insights to help make the right lender decision.

6. Documentation and Application Process

After selecting a mortgage broker and the type of mortgage you need, it’s time to complete the documentation and gather the paperwork to get approved. Some of the documents you require include:

  • Proof of income
  • Employment verification
  • Bank statements
  • Credit score report
  • Details of any debts

7. Closing the Deal

You should rely on a mortgage broker or your realtor to get the deal negotiated, finalized, and closed on your behalf. After you submit your mortgage application, the lender will go through it and outline the terms and conditions you need to abide by before getting your loan approved.

To avoid any future surprises, it’s better to seek clarifications on any terms or conditions you are unable to understand or are doubtful about.

Conclusion

Becoming a first-time home buyer in Abbotsford is an exciting as well as stressful journey, but a mortgage broker can make it all easy for you. If you are looking to get your first-time home buyer mortgage in Abbotsford approved with minimal effort, contact Sandhu & Sran Mortgages.