Must Read Advice for Simplifying the First Time Home Buying Process
So you are planning to buy your first home. Congratulations! It’s a big milestone in your life. But it’s also a big commitment. The more you know the more prepared you will be for the home search and financial responsibilities for owning a home.
Consider the following advice in your quest for buying your first home:
Explore your mortgage options now
Getting pre-approved for a mortgage will help temper your expectations and know what you are working with in terms of budget. Knowing how much you can afford will help you narrow your options, better understand your financial situation, and give you a leg up when you are prepared to make an offer on a house.
Know the costs of buying a home
Many first time home buyers are often caught off guard by the “other” costs of buying a home. There is a lot more to pay for then just the down payment on a new home. You also need to factor in lawyer fees, land transfer tax, mortgage insurance, home insurance, moving costs, and more. Learn more by reading Hidden Costs of Home Ownership to be Aware of and 10 Additional Costs Of Buying A New Home You Must Account For In Your Budget
Find a real estate agent that meshes well with you
No two real estate agents are the same. Interview a few agents to find one that you are comfortable with and are confident can help you find your perfect home.
Know what you are looking for
Do you want a home with a picket fence? Looking for something large and modern? How about something quaint and cozy? Want a big yard? Is a garage a deal breaker? You can make things easier on yourself and your real estate agent if you know the type of home you want. Make a list of must have’s, nice to have’s, and deal breakers to help guide your search.
Be realistic
Let’s repeat this. You need to be realistic. Before you go house shopping learn about the real estate market to understand what you can expect to pay for a house given where you live and the features you want. Also, understand that you will likely have to make some concessions. It’s rare to find a house that will give you everything on your must-have list, especially if you are working with a limited budget.
Take advantage of the first time homebuyers plan
Take advantage of the first time home buyers plan offered by the government. Learn more about it here: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html
Get a home inspection
Getting a home inspection is one of the most important things you can do when buying a home. There are plenty of people that were ready to buy, only to walk away from a home after they received the results of the inspection. Failure to get a home inspection only increases your risk when buying a home.
Understand your responsibilities
Make sure you are crystal clear about what you are signing and your responsibilities as a homeowner. Know your financial and legal responsibilities before signing off on documentations
Ask questions
If there is anything you are confused about or do not understand, ask for clarification. Between your real estate agent, mortgage lender, home inspector, lawyer and your friends and family, you should have no problem getting answers to your questions.
Was there anything that caught you off guard when you bought your first home? What is the best piece of advice you received when you were shopping for your house?