12 Oct 2016



Your Home Buying Journey Starts One Year Out…

One year before your mortgage approval comes through, you should be putting irons in the fire to get the process going. Here’s a quick checklist to get you thinking about where you should be at in the process:

  • One year before you are going to buy a home, start looking into your credit report. You should have a look at your score and start making a plan for what measures you need to take, if any, to get it to where it needs to be. For a guide, 700 is considered a good credit score, most lenders won’t look at anything below 650.
  • 12 to 10 months before you are going to buy a home, start paying off those debts you have or at least getting them under control. You want to look as attractive as possible to a lender when it comes time for mortgage pre-approval and approval.
  • 8 months before you are going to buy a home, start to budget tighter, and living off less. Buying a home comes with more expenses than the added mortgage payments each month, there will be initial expenses for closing costs and various other things that you’ll need money set aside for. You don’t want to go into the home buying process living paycheque-to-paycheque.
  • 6 months before you are going to buy a home, is the time to start shopping around at mortgage rates. Start to compare rates and different options for financing.
  • 4 months before you are going to buy a home, you’ll want to get all of your required paperwork ready and go see a mortgage broker about pre-approval. It will take some time to get things organized, and most pre-approvals can be held for three months.
  • 3 months is the time when you should start house hunting! By this time, you’ll have a mortgage pre-approval and you’ll have a home buying budget to work with. Seek the guidance of a REALTOR®, and get together your list of needs and wants in a home.

If you have questions about the mortgage approval or home buying process, please feel free to contact me.

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