Thinking of Buying a Home?
Finding a home is an exciting experience, but it can be long and challenging. Knowing what to expect will help you make solid decisions about the type of home you choose.
- Check your bank balance. How much do you have saved for a down payment? Anything less than 20% down means you'll pay more every month. You will need to borrow more money and will likely be charged private mortgage insurance (PMI) fees on top of your mortgage payments. Your lender must automatically cancel PMI when your outstanding loan balance drops to 78% of the home’s original value. This could take several years.
- What’s your number? Your credit score tells lenders how likely you are to pay back a loan on time. It will be used by lenders to determine whether they will lend to you and if so, how much.
- How much can you afford? Using a Personal Budgeting Worksheet and Mortgage Calculator (opens new window) will help you determine a realistic mortgage amount.
- Shop around for a loan. Comparing mortgages will help you get the best financing. And, before signing, make sure that understand the terms of the loan including any fees.