**Rates subject to change without notice Last Updated: Friday, March 22, 2013
Congratulations on your decision to buy your first home. What an exciting time! As a first time buyer the process may seem quite overwhelming. There are many factors to consider. Purchasing your first home may be the largest financial commitment you will make. As a Mortgage Specialist I will walk you through the full mortgage process, step by step, from your initial application up until closing.
I encourage you to familiarize yourself with the home buying process and mortgage basics here at CalgaryDreamHome.ca so you can be knowledgeable and confident in moving towards your dream of homeownership. Should you have any questions prior to your initial application, please CONTACT US and I will gladly answer any questions you may have. Also, please make sure to visit the LEARNING CENTER for more information on how to purchase your first home.
I look forward to hearing from you soon. Good Luck!
Your First Step - Pre-approval:
Your first step in the home buying process should be to have yourself pre-approved for your mortgage. A pre-approval is a process that tells you if you qualify and for how much. Once you are pre-approved, you will receive a certificate that will state the amount you qualify for, your monthly payment amount, and will guarantee your interest rate for up to 120 days*. If rates drop prior to closing, you could receive the lower rate*. Should they rise, then you still receive your guaranteed rate.
With your confirmed pre-approval in hand, you can shop for your dream home with confidence, peace of mind and negotiating power. Pre-approvals can be processed in as quickly as 4 hours from the time you apply. Also, there is no obligation or commitment when you receive a pre-approval; it is simply meant to provide security for you and your realtor while you shop.
*Rate holds vary from lender to lender
Your minimum 5% down payment can be accessed from a variety of sources. It can be:
- from your own savings
- borrowed from a family member (this is what is called a “gifted” down payment)
- a combination of both a gift and your own savings
- taken from a credit card, loan, or line of credit.
- Also many banks and lenders will provide you with 5% cash back which is applied to your down payment. This program is offered through both GE and CMHC, however higher rates may apply.
- Homebuyers plan: First time buyers are eligible to withdraw RRSP funds to be put towards their down payment. Each applicant can withdraw up to $20,000, that’s up to $40,000 per couple!
To see if you qualify, call today!
Another great option for first time buyers is to have a parent or family member co-sign with them. This will help to strengthen your application, making the purchase of your first home a simple process.