Buying your first home is exciting but may also feel overwhelming. Before making such a large purchase, you want to ensure you have a plan in place so the purchase process can go as smoothly as possible. If you’re looking to enter the market, congratulations! I’ve put together a few tips and things to keep in mind before taking a plunge into the real estate market.
Determine What You Can Afford
It is effortless to become emotionally attached to a home. But before doing so, it is essential to assess your financial readiness. Consider insurance, taxes, and utility bills when calculating how much money you'll need to purchase a home, among other expenses. Consider how much money you have to put towards a down payment. Keep in mind that if your down payment is less than 20% of the cost of your home, you will have to pay for mortgage default insurance too.
Consider Your Existing Debt
Your ability to save money for a down payment will be affected by the amount of debt you currently carry. Getting a handle on your debt will allow you to save more for your down payment. A reminder that this is not the time to purchase that new vehicle you’ve had your eye on or any other large purchase! This will impact the amount you will get pre-approved for when you make the trip to the bank.
Before you shop for a home, it’s essential to understand how much a lender will give you to purchase your first home. Getting pre-approved for a mortgage amount beforehand is crucial. This will determine your budget and ensure you aren’t looking at homes out of your price range. It would be awful to fall in love with a home only to find out you can’t afford it!
What Are You Looking for in a Home?
While in the process of purchasing a home, it’s natural to be excited. However, being realistic about what you want in a home is also important. You can start by asking yourself these questions:
- Can you comfortably afford this home?
- How long do you plan to live in this home?
- How long would your commute be?
- Is there room to grow in this home?
- Is this a neighbourhood you want to live in?
Let the House Hunting Begin:
This is the fun part! You’ve been pre-approved for a mortgage, have your list of wants and needs, and are ready to start house hunting. I would love to guide you throughout the process and provide professional advice along the way. Let me share my knowledge of the current market. If you have any questions before beginning the process of purchasing your first home, let’s connect.