So you've made the big decision to finally buy a home. Whether it's with family, a partner, friends, or on your own, this is truly a big accomplishment you'll look back on for years to come. 

As exciting and full of possibility that a house hunting process may bring, it can be equally as intimidating or overwhelming going about the process itself of purchasing this home, especially if you're not equipped with the right knowledge going into it. 

There are many ways of going into a mortgage process, with the right resources to get you started. This may be from a realtor who is very familiar with the market and may even be able to refer you to a financial advisor to make sure you're getting started on the right foot. 

We've prepared a list of some of the most important aspects to consider when you first start thinking of buying a home, something to consult further with your bank to see what the right steps are for you. 

Credit, Credit, Credit 

If you don't already have a perfect or great credit score, even before thinking of buying a home, the perfect time to start building or improving your credit score is now. 

Your credit score is essential in getting approved for a mortgage, as banks have a general average score they allow for a loan, as well as how affordable your loan will be. 

While your credit score does take time to build up, immediate steps you can take to improve it is to pay all outstanding debts you may have in full. Paying bills or debt payments on time and your credit history in regard to these payments is crucial to how banks decide on approving you for a loan. 

It is also important and suggested not to open any new lines of credit or make any large or unnecessary purchases on your lines of credit a few months before applying for a mortgage. 

Sit Down With Your Financials 

While this may seem obvious, one of the most critical steps in applying for a mortgage and buying a home in general is taking a look at what you can honestly afford. 

Sitting down with a financial advisor can save you the hassle and the stress of figuring out your financials on your own and what you can and can't afford. They will go into the specifics, looking through your credit reports and expenses and realistically having a discussion about what may need to be cut out to afford your dream home and more importantly, be approved for it. 

There are several fees that come with purchasing a home that new homeowners don't expect, throwing expectations for a loop. Fees such as property taxes, utility bills, potential homeowners' association fees, insurance, and more need to be covered when figuring out expenses. 

Choose Your Mortgage Type

Another critical reason as to why speaking with a financial advisor is so important - it can be difficult figuring out which type of mortgage best suits your financial plans. 

From conventional mortgages with strict eligibility requirements and higher down payments to government mortgages which allow you to secure more flexible loans. To choosing an interest rate plans that's fixed versus variable, the options may quickly feel overwhelming, especially if you're not fully confident in your financial knowledge. 

Even short versus long-term loans, how long do you want to be paying off your mortgage for? These may sound like questions you don't have the answers to right now, and that's okay. However, getting in touch with the right people who can help you answer these questions is important.

Posted by Michael Clendenning on
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