Are you a first time home buyer, and not sure where to start? Here’s a few quick tips on how to get started on this exciting journey.
It can be complicated if you don’t know the process. Let’s get you on the right track, right from the very beginning. It will save you time and frustration in the long run.
The first thing you’ll need to do is ensure your finances are in order. As a first time home buyer, you will require a minimum down payment of 5% of the sale price. There are often incentives or programs you can access to help you get there. Check provincial and federal websites for available housing programs or incentives.
Be aware you will also need some readily available cash for your deposit when you put an offer in on a house. On an average home, usually five or ten thousand dollars is appropriate, though it can be more or less. The deposit is not in addition to the down payment; rather it makes up part of the down payment. The deposit serves as a show of good faith to the buyer, and proves that you are truly invested in the offer.
And of course, you will need to find a lender to work with. Don’t be afraid to shop around for a lender. You don’t have to stick with your current bank or credit union if you can get a better interest rate and terms elsewhere. A mortgage broker may be another solution for you. You want to find a lender you are comfortable with, and you want to find out what you qualify for. There’s nothing worse than finding out you’ve been looking for houses in a lower range than you need to, OR falling in love with a home you can’t afford. Nail down your house hunting budget first, to avoid disappointments later. And, this is important; obtain a mortgage pre-approval letter from the lender. This will give you credibility as a qualified buyer when it comes time to make an offer.
Now that you know what you can afford, decide exactly what you’re looking for. What area do you want to live in? Are you okay with a house that needs a little work, or do you want a home where you can just move in and unpack?
if your home search takes you to a fixer-upper, or a handyman special, I’ll be talking about the pros and cons of buying an older home in my next blog. Before you jump into a home that needs anything from a little TLC to a full reno, drop back in and see some quick tips on what to watch for.
Identify what’s important to you and your family so that your realtor understands what your needs and motivations are and can find you the perfect property.
And finally, choose a realtor. You want someone who will work with your best interests at heart. Recommendations are a good place to start, but just because a friend or relative loved a certain realtor, doesn’t mean you will too. Find someone you’re comfortable with because you will be doing a lot of critical communicating in the next little while. It’s so important that you can have an easy and frank conversation with your realtor with questions or concerns about homes you are looking at together. Your realtor also does the heavy lifting when it comes to the offer and negotiation process. This can be complicated, and its important that there’s a level of trust and comfort between you and your realtor.
First time home buyers, I’d be happy to work with you as you buy your first home. As your realtor, I can walk you through each part of the process, and make sure that you are comfortable with each step as it happens, and that you understand all of your options are along the way. I’ll represent you through the offer and negotiation process, and stay with you right to possession. My goal is to help you reach your goal – finding your dream home. Drop me a text or give me a call.
