Buying a home for the first time ever is quite challenging and thrilling at the same time. You’re excited because you’re making one important decision in your life. And you’re frightened because of a big 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 a question you must answer before buying your first-ever home.
Do you plan to buy and live OR buy and rent OR buy and 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 below:
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 setting aside as your savings.
Your budget will also help you decide if you could afford a condo or a single-family home.
The down payment is your significant contribution in the beginning. The law says that 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 maintain 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 that the lender will approve your mortgage, but it helps refine your search for the right mortgage.
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 the importance of it.
Start your research by visiting several realtors’ websites. For instance, if you plan to buy a condo in Toronto, you need to search 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 just to save a few hundred (or less) dollars. The professional home inspectors would help you identify the house’s problems and may guide if you should fix them or look for another home.
For build-to-occupy homes (or condos), you might be needing some renovations or fixes. 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: