01/26/2023
1. Check your Credit Score - this is the first thing your mortgage lender will look at, make sure there are no surprises!
2. Gather all the Paperwork - income tax statements, paystubs, proof of income if you're self-employed, along with bank statements and savings records.
3. Sit with your Broker - securing a preapproval should allow you to lock in an interest rate for a set period, then you can focus on homes within your price range. If your credit needs a clean-up before you can get a preapproval, your broker can help you know where to start.
4. Start Looking Now - there's not usually as much housing inventory in the winter, but there are also fewer buys, making it a good time to get a great deal on a home you've had your eye on. If you're not quite there yet, take this time to research neighbourhoods and the average prices of homes in the locations you like.
5. Avoid Large Purchases - as you pay off any holiday debt you may have accumulated, you should also avoid making any large purchases that can affect your credit score, such as a vehicle.
6. Start Saving - get any cash for Christmas? Put it in a savings account and don't touch it! Consider taking advantage of any investment gains by converting your holdings into cash - make sure to consult with your financial advisors first.
7. Eliminate Unnecessary Spending - this goes with #5, scrutinize your budget and put the credit cards away until you've secured your new home.
8. Avoid Switching Jobs -starting a new job while applying for a mortgage loan will make the process much more difficult and time consuming. Even if it is for more money, it is better to stay where you're at until your loan is secure.
9. Cut Down Monthly Subscriptions - things like Netflix and Spotify aren't pricey individually, but collectively they can all add up. Trim the fat on your monthly expenses to maximize your borrowing power.
10. File Your Taxes - on time and as quickly as possible. Make sure you have no outstanding debts to the CRA.
