Big news in NL! The Newfoundland and Labrador Government announces the New Home Purchase Program today.
This program will allow first time home buyers to apply for a loan to be used as down-payment on their first home. The government also announced that a small part of that loan will now be in the form of a grant. (Free money!)
Eligible households can receive 5% of the purchase price of up to $250,000 for a new or existing home. If the home is more than $250,000, the buyer can make up the difference of course with their own resources. Click here to read the government’s news release. There will be more information released on April 1st on the Newfoundland and Labrador Housing Corporation’s (NLHC) website – I will update ASAP.
This is a fantastic initiative since the biggest hurdle for first time home buyers is saving enough money for a down-payment.
We are sending applications for pre-approval right now! The program opens April 1st and there is only a certain amount of funds available. Don’t hesitate! Call today for a confidential discussion of your mortgage options.
Buying a home is a big step – a big, very exciting, potentially stressful step! How can you take the hassle out of the equation and keep your buying experience super positive? Easy… Surround yourself with a team of experienced professionals!
Many experienced realtors insist on starting your financing first, that’s where your Mortgage Broker comes in.
What is a Mortgage Broker?
A Mortgage Broker is an expert in real estate loans that acts as a match-maker between home buyers looking for money and lenders with funds available to borrow. A broker will collect information from you about your employment, income, assets, loans and other financial obligations as well discuss your current budget, spending patterns and goals in order to get a thorough understanding of where you’re at and where you’d like to be. From here they assess the strengths and any weaknesses in your application and can advise on potential suitable financing options and any next steps you might need to take in preparing yourself for loan approval.
Talking with a Mortgage Broker before you start shopping is helpful for a number of reasons:
You’ll develop a well-founded expectation of the price range and payments that you can afford.
You’ll have a chance to address any potential gaps in your application for financing BEFORE you’re in a time crunch to meet deadlines for closing.
Sellers may take your offer more seriously when you tell them you’ve been pre-approved for your financing putting you in a better position to negotiate (price, possession date, inclusions, other terms, etc).
You and your Mortgage Broker will begin to compile your documentation so that your application is ready to go when you find the perfect home, leaving your mind free to start arranging furniture in your new place.
So why use a Mortgage Broker rather than your bank?
A Mortgage Broker has access to loans from a wide range of lenders. That means that you have more potential places to get approved, AND can take advantage of best products, top programs and lowest pricing!
A Mortgage Broker working with multiple lender options means that they truly SHOP for the best programs and rates for you based on comparisons and choices and don’t simply sell you the limited products they have to offer through a single bank source.
Mortgage Brokers work EXCLUSIVELY in mortgages so they are mortgage product specialists rather than banking generalists. Brokers deal with real estate transactions involving deadlines and conditions everyday as part of their job. They understand the urgency of meeting these commitments to ensure a successful transaction for everyone involved.