How To Successfully Transition from Renter to Buyer

Are you fed up with being a renter? Tired of handing your money over to someone else every month? Do you want to become a home owner and start building equity?

If you’re now at a point in life where renting is no longer what you want to do, and circumstances have allowed you to consider buying your own home, here is a short guide from professional mortgage brokers to help you make a seamless transition from renter to buyer:

Gather all the relevant documents

It’s really important to be organized when going through the process of buying your first home, and for things to go smoothly, you must make sure the following documents are available and to hand, whenever you need them. Here are some of the most important documents:

• Income documents – keep hold of T4s, Notice of Assessments and account statements to show that you don’t owe any taxes to the IRS. For those who are self-employed, you’ll need a FULL T1-Generals in PDF form (you can ask your accountant for this) and ensure that you have the registration papers for your company or business license to hand

• Bank/investment statements – many homebuyers are still getting paper bank statements, and if you’re one of those, keep hold of all recent ones, especially if they’re quarterly. It’s important to remember that every deposit must have an explanation, and to make things easier for you, try keeping your down payment is as few accounts as possible, and where you can, avoid making transfers in and out of it. 

Think carefully about your budget

Just as you would while making any financial decision, you should think long and hard about your budget and what you can realistically afford, when shopping for a mortgage. Don’t forget that emergencies can happen at any time, and you’ll need to have some money set aside for those should they occur. 

Always seek pre-approval

While getting pre-approval is by no means a guarantee that you’ll be approved for the mortgage you want, it is sensible to have one as it gives you the opportunity to clear up any unforeseen problems such as unknown credit, in advance. It also enables your mortgage broker to give you realistic figures and gives you, and them, a better understanding of your price range.

While this is a brief guide to transitioning from renter to buyer, the process can be more longwinded for some than for others, and as such, it’s always recommended to work with a professional mortgage broker. With their expert guidance, you’ll never miss out on the right property, and can wave goodbye to empty money and impersonal homes, quicker than you think!