As you start to think about buying a home, you might be tempted to open up one of those real estate apps and look at thousands of pictures of homes, imagining which one could be your dream home. But if you’re a first-time homebuyer, you should do some planning before you start this journey. When the housing market is hot and there is a lot of competition, doing your homework ahead of time will help you prepare for buying a home.
Here are some tips on how to buy a house in Chilliwack.
Get a Handle on Your Debt
It would be wise to pay off any outstanding credit card debt, student loan debt, auto loans, or lines of credit at this time. Your credit score will increase if you reduce your debt load. It will also have a favorable effect on your debt service ratios, which your lender will consider when calculating how much money to lend you. When you talk to the experts at Cervus Realty, they will be the first to tell you, the less you owe, the more you can afford to borrow comfortably.
Figure Out a Down Payment
Putting money together for a down payment is the first step in how to buy a house in Chilliwack. In Canada, the down payment for a property must be at least 5% of the total cost. You will require 5% of the first $500,000 and 10% of the remaining amount for properties costing between $500,000 and $1 million. The required down payment for properties costing $1 million or more is 20%.
