Tips for First time Home buyers!

1. First Time Home Buyers butlermortgage.ca/mortgages/purchase/first-time-home-buyers/ 1) Pre-Approval Pre-approval is the first official step of mortgage application. One of our Mortgage Consultants will help you with your mortgage application and then research the market to find out which Bank/Mortgage Lender offers what you need, how much you can qualify for and the best interest rates available to you. Our skilled team can get you an official pre- approval within hours. The strength of our relationships with lenders allows us to hold your interest rate at its lowest point for up to 120 days without rate increases. 2) Find a home – offer to purchase A pre-approval does not lock you into a mortgage. It serves to outline your price range and to secure an interest rate while you find your home. Once you find your home refinance, you submit an Offer to Purchase (your Real Estate agent will cover this). When your offer is accepted, your Offer to Purchase becomes conditional. The standard life span of a conditional Offer to Purchase is 7 days. During this period, the home purchaser(s) obtain a full mortgage approval, have the potential property inspected and ensure there are no underlying issues with the home. 3) Full Approval Once you are confident you’ve found your home, our team locates a lender that will loan you the money to purchase the home at your pre-established interest rate. A full mortgage approval usually takes between 24 and 48 hours. Yes, it’s that fast, our relationships with the Banks and Mortgage Lenders are for your benefit. Butlermortgage.ca places most mortgages in Canada compared to any other mortgage- brokerage firm. As a result, your mortgage application gets placed at the top of the pile and is processed quickly. In a short time, it’s in your hands and ready to sign. 4) Appraisal and Down payment An appraisal is only needed for Conventional Mortgages. A Conventional mortgage is when, as the buyer, you put 20% or more down on your home’s purchase price. Don’t have 20%? Don’t worry. For buyers that don’t put 20% or more down on the purchase price, the mortgage is subject to CMHC or GE (Genworth) Insurance premiums that the Banks and Mortgage Lenders obtain for your mortgage. This premium is intended to protect the lender from higher risk mortgage loans. As a first- time home buyer, you have the ability to put as little as 5% down and even $0 down, provided you meet the necessary qualifications. For more information, please call us – a mortgage consultant will outline your mortgage options. 1/2

2. 5) Paperwork Paperwork is an essential aspect of the mortgage process – you can’t avoid it. The amount of paperwork you’ll be required to complete will vary and depends on your mortgage type and your mortgage lender. Prior to joining Butler Mortgage, we will review in full detail all required paperwork. Necessary paperwork usually relates to employment, income and down payment confirmation. 6) Lawyer A Lawyer is required to represent you when you purchase a home. Your lawyer receives and pays out the money you borrow and closes your mortgage on the assigned date. Your lawyer informs you of your legal responsibilities in the mortgage process and manages your closing costs (i.e. transfer taxes and property tax set-up). You will find that your first-home purchase both excites and overwhelms. Thankfully, Butlermortgage.ca strives to make your mortgage experience positive and is by your side from the day you start through to the day you’re mortgage free. 2/2