Planning ahead can save you from numerous trials and tribulations often associated with purchasing your first home. The Kelowna Real Estate Company wants you to enjoy a smooth and streamlined transition into home ownership. There are many financial considerations to keep in mind. How is your credit rating these days? The faster you determine if there are any gremlins in your credit history past, the quicker you can make amends. It can take months for any positive fixes to show up on your credit report, especially if they were longstanding or forgotten about. Checking into your credit history and patching up any problems is a huge part of your mortgage approval process. Breaking into the Kelowna real estate market is exciting! Keep the following tips in mind to help you simplify the process.
How Much Can You Afford?
While you are house hunting, it is vital to be realistic with your wants vs. needs. Paying down credit cards and eliminating them to one main card may be beneficial. Review how much you are paying in interest on your furniture, cars, credit cards etc. and tackle the highest interest items first. While the bank likes to see that you are responsible and making all of your payments in a timely manner, they will penalize you if you are stretched too thin or have too high of a debt ratio. Once you pay off or sell some of your liabilities, you may be surprised at how much more cash ends up available for your downpayment. Many clients are unable to save for their home until they re-evaluate their current spending and debts. Be patient with the process…almost everyone venturing from renting to buying is in the same boat of self-reflection and overhauling certain aspects of their spending and saving habits. Your Kelowna Real Estate Company can find a plethora of suitable properties to consider.
Remax Kelowna recommends taking note of the Okanagan communities you are naturally drawn to. Do you prefer the hustle and bustle of downtown? Or are you more suited to an acreage or quieter location? Are you hoping for an income rental suite in your new home? Maybe condominium living more your style? Making an honest list of your lifestyle is essential to choosing a neighbourhood that you will flourish within. If pets are a huge part of your life, a fenced yard may be more suitable than a condo. If you work within a particular area, you may have a specific travel time in mind for commuting. If you enjoy your personal space, perhaps a duplex is not ideal. Considering your proximity to schools, the gym, your favourite recreational beaches and activities may influence and narrow down which Kelowna neighbourhoods you prefer.
Keep in mind that certain lending institutions will require copious amounts of paperwork to prove you are worthy to lend to. A letter of employment, recent bank statements, personal references and financial records are commonly required. Start a folder or filing system to keep your pertinent papers easy to locate. You may be asked to show proof of payment for outstanding credit report issues and these receipts are vital for keeping on hand. RRSPs and financial savings records will also be used in the banks’ calculations. Keep track of all assets and liabilities including how much is outstanding on your vehicles (boats, snowmobiles, quads etc) to provide an accurate financial picture. Student loan information will be required as well. Speak with your potential lender early on and obtain a checklist of their specific requirements so that you have ample time to get sorted.
Real Estate Specifications
While a lake view might be high on your priority list, a steep driveway may not be! Making a detailed preference of items you prefer can help you save time and energy by only viewing properties that meet your criteria. However, it is essential to maintain an open mind. If you require a shop for example and you fall in love with a home that only has a carport, you can return to your budget and decide if adding a garage is a feasible option down the road. Remax Kelowna can help you find the dwelling of your dreams. Our job is much easier when clients take the time to really review their wants and needs along with their budget and purchase prerequisites. We look forward to hearing about your wish list soon!
Sean Skuter Realtor
RE/MAX Kelowna #100 – 1553 Harvey Avenue
Kelowna, British Columbia V1Y6G1
C (250) 801-3654 O (250) 717-5000