May 18, 2021
Buying a home for the first time is quite challenging and thrilling at the same time. You’re excited because you’re making a critical decision in your life. And you’re frightened because of a significant investment you’re about to make.
Worry not! I will share some tips for first-time homebuyers to make the entire buying process smooth and easy so you’d plan wisely.
Before we go into details, I’ll share some necessary information about the incentives offered to first-time homebuyers:
Let’s start learning the tips to buy your first home!
You may laugh at this tip, but it is a question you must answer before buying your first-ever home.
Do you plan to buy a condo for living, rent or sell?
All three buying decisions follow a similar process (almost) but have different outcomes.
So, if you plan to buy and occupy, you need to answer the below:
And if you plan to buy and rent, your questionnaire would look like this:
If you plan to buy and sell, you must consider the following:
Let’s assume that you plan to buy and occupy.
So, now that you have decided to buy a principal home instead of investing, you need to start managing your finances:
Based on your current monthly income, prepare a monthly budget with a hefty portion set aside as your savings.
Your budget will also help you decide if you can afford a condo or a single-family home.
The down payment is your significant contribution in the beginning. The law says you need at least 5% of the total house price as a down payment. But 20% is the optimal value. With 20%, you secure yourself from taking mortgage loan insurance.
The simple rules to maintaining good credit scores include:
Read more if you plan to buy a condo: 3 Key Elements to Consider When Buying a Condo
The most common types of mortgage are:
A pre-approved mortgage doesn’t mean the lender will approve your mortgage, but it helps refine your search for the right one.
It helps you in:
One challenging part is down, the other to go – selecting your dream home.
Home shopping is best done when you initiate your search on the internet. Technology is taking over, and we can’t deny its importance.
Start your research by visiting several realtors’ websites. For instance, if you plan to buy a condo in Toronto, you need to search for condos for sale in Toronto. Refine your search by applying filters based on requirements and budget.
You could also read different blogs from these professional real estate agents and learn about the country’s housing market.
Once you have a good knowledge of the real estate market, you now need to call the real estate agent near you. These professionals would further advise you on the best option you need to consider.
Don’t miss this tip to save a few hundred (or less) dollars. The professional home inspectors would help you identify the house’s problems and may guide you if you should fix them or look for another home.
You might need some renovations or fixes for build-to-occupy homes (or condos). However, for ongoing (pre-construction) projects, you’d rest assured that no renovations or fixes would be required.
These tips are essential when you plan on buying your first home. So, review all the central elements, and revise the content if something is missing: