Are you ready to buy a home?

Are you ready to buy a home?

It is the start of the selling season in the Robson Valley and and properties are coming up for sale in McBride, Dunster and Valemount, but are you ready to buy? In our current market, properties are selling fast; here is some information to help you get started. 

Have you been pre-approved? Being preapproved will greatly increase your success of purchasing a home and will give you a realistic idea of how much you can afford. 

Do you have a down payment? You will need a minimum of 5% of the purchase price as a down payment. If you have less than 20% down you will require mortgage default insurance. 

What is your credit rating? How is your credit? You will require a minimum credit score of 650.

What will lenders require to determine your mortgage affordability? 

  1. Proof of income: pay stubs, letter from employer, NOA's 
  2. Credit score/history
  3. List of your debt payments
  4. Assets/ Liabilities
Lenders will use 2 main calculations to determine how much you can borrow. They are called the gross debt service ratio GDS and the total debt service ratio TDSR. The GDSR is a percentage of your gross monthly income used for mortgage payments, heating and taxes. TDSR is the percentage of your monthly income used to cover your housing costs plus all of your other payments. 
Use this calculator to determine how much you can afford and make an appointment with your bank to be preapproved. 


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