Get a Mortgage Pre-Approval

Once you've made the necessary calculations and feel that you are ready to obtain a mortgage, it's a good idea to select a lender to get pre-approved. This means that the lender will look at your finances to establish the amount of mortgage you can afford. At that time, the lender will give you a written confirmation or certificate for a fixed interest rate good for a specific period of time.

Some buyers may not wish to pursue a mortgage pre-approval until they have found the home they want to buy. However, the idea of having a pre-approved mortgage amount makes the search for your new home much easier and less time-consuming because you have a good price range in mind.

Some of the things you will need to have with you the first time you meet with a lender are:

  • Your personal information, including identification such as your driver's license
  • Details on your job, including confirmation of salary in the form of a letter from your employer
  • Your sources of income
  • Information and details on all bank accounts, loans and other debts
  • Proof of financial assets
  • Source and amount of down payment and deposit
  • Proof of source of funds for the closing costs (these are usually between 1.5% and 4% of the purchase price)

Will You Have Trouble Qualifying for a Mortgage?

Your calculations may show that you will have trouble meeting monthly debt payment and that you will likely have trouble getting approved for a mortgage. Here are some things you can do:

  • Pay off some loans first
  • Save for a larger down payment
  • Revise your target house price

Other Helpful Strategies

  • Meet with a credit counselor who can help you minimize your debts.
  • Buy your home through a rent-to-own program provided by the builder, a non-profit sponsor or a government sponsor.
  • Find out about programs through which you can help build your own home.
  • Ask the housing department of your municipality about any special programs available.

The Importance of Your Credit Rating

Before approving you for a mortgage, lenders will want to see how well you have paid your debts and bills in the past. To do this, they simply get a copy of your credit history (credit report) from a credit bureau. This provides them with information on your financial past and use of credit. 

 
  
Final Step

Closing Day

  • Closing day is the day when you take legal possession and finally get to call your new house your own. But the home buying process isn't over just yet. There are quite a few things that need to be done on closing day:

      Your lender will provide the mortgage money to your lawyer/notary.
  • You must provide the balance of the purchase price to your lawyer/notary along with the closing costs.
  • Your lawyer/notary pays the vendor, registers the home in your name, provides you with a deed and the keys to your new home.

Hiring a Mover

  • ask the mover for references.
  • estimate and outline of fees (flat rate or hourly charge, etc.)
  • have the representative come to your home to see what will be moved and revise the estimate if necessary
  • ensure that your belongings are insured.
  • ask about the extent of coverage. Many moving companies offer additional insurance coverage.

 *Be aware that professional movers are not responsible for items such as jewelry, currency or important papers. You will have to move these yourself.*

 

   *If you decide to do your own packing, keep in mind that you will need the proper materials and that it could take up a lot of time.*

The Big Day

  • go through the house with the van supervisor and provide any special instructions.
  • The supervisor will also make note of the condition of your goods on an inventory list.
  • Go through the house with the supervisor to make sure the list is complete and accurate. Then at your new home, mark off the items on the mover's list as they are unloaded.

  *Remember that even if the movers unload and unpack boxes and remove packing materials, they will not put dishes or linens into cupboards.*

Saying goodbye to one home and neighborhood and discovering a new one can be very exciting. Just make sure it is not hectic as well. Plan ahead to make the transition as smooth as possible for everyone involved. That way, you can breathe easy and enjoy your new home without having to worry so much.