9 Steps to Buying A Home - Buyer's Guide

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are you financially ready? How much are you spending now? The first thing you need to figure out is how much you are spending now. 1. Calculate your household expenses What is your present household budget? How much are you now spending each month on household expenses? The Current Household Budget worksheet on the next page helps you take a realistic look at your current monthly expenses. Fill in all the figures that apply to you, and add them up. CURRENT HOUSEHOLD BUDGET Details Current Housing Expenses Rent $ Average monthly amount Electricity (if paid separately) $ Heating costs (if paid separately) $ Water (if paid separately) $ Maintenance/Repair $ Parking fees (if paid separately) $ Current Non-Housing Expenses Cable TV and internet $ Car fuel and expenses $ Charitable donations $ Child care/Child support $ Clothes and personal items $ Furnishings $ Groceries $ Insurance $ Medical and dental expenses $ Public transportation $ Savings (bank account, RRSPs) $ Telephone/Cell phone $ Other expenses $ Total Monthly Expenses $ Note: You may have other costs not shown on this worksheet Monika Tarnik-Jedrusiak 416.822.7357 ext. Lic# M13000687 monika@mortgagepal.ca 10
2. Calculate your monthly debt payments Do you know how much debt you are carrying? You need this information to figure out whether you are financially ready for homeownership. If you decide to buy a home, mortgage lenders will ask for this information. Use the form below to determine your current monthly debt payments. Fill in all the figures that apply to you. MONTHLY DEBT PAYMENTS AVERAGE MONTHLY AMOUNT Loans for property you own $ Car loans or leases $ Personal loans $ Lines of credit Credit cards $ Student loans $ Other loans $ Total Monthly Debt Payments $ 3. Calculate your total monthly expenses Your total monthly expenses are your household expenses plus your debt payments. To calculate your monthly expenses, add the total from the Current Household Budget form to the total from Monthly Debt Payments form, using the form below. EXPENSES AMOUNT Total Monthly Expenses (Step 1.) Total Monthly Debt Payment (Step 2.) $ $ Total Monthly Expenses $ 4. Prepare for pre-approval Now you have a better understanding of your current financial situation, and can start preparing for a pre-approval interview. Find out what else you need to prepare for the pre-approval process in Section 3. ® 11
Page 1 and 2: HOMEBUYER'S GUIDE Revised July 2017
Page 3 and 4: What to expect from this guide This
Page 5 and 6: Section 1. Qualification Guidelines
Page 7 and 8: down payment Down payment A down pa
Page 9 and 10: Gross debt service ratio and total
Page 11 and 12: Section 2. Credit Credit is a criti
Page 13: What is a credit bureau? A credit b
Page 17 and 18: Home Buyers’ Plan The Home Buyers
Page 19 and 20: Section 3. The Approval Process Onc
Page 21 and 22: the approval process 7. Once we hav
Page 23 and 24: Why use me as your mortgage profess
Page 25 and 26: Section 4. Mortgages and Insurance
Page 27 and 28: mortgage interest rates When you ap
Page 29 and 30: Example Most lenders allow several
Page 31 and 32: other costs to consider Mortgage Li
Page 33 and 34: Section 5. Now That You’re a Home
Page 35 and 36: home insurance As home ownership is
Page 37 and 38: Section 6. How to Save The key to s
Page 39 and 40: 2. Monthly Prepayments By making ex
Page 41 and 42: 5. Renewing with a Mortgage Profess
Page 43 and 44: Section 7. Resources Monika Tarnik-
Page 45 and 46: Term Conventional Mortgage Countero
Page 47 and 48: Term New Home Warranty Program Nota
Page 49 and 50: Homebuyer’s Guide at a glance Sec

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