Are you ready to buy your first home? I am arming you with tips so you can get that home you want and can afford without losing your shirt. Read these tips so you don’t delay the sold sign on your new home.
1. Get a Pre-Approval:
What you can afford and what the bank can lend you might be 2 different amounts. Make sure you talk to your Mortgage Specialist and see what you can be pre-approved for. Just so you know when out there looking for a new home you know what you have been pre- approved for and you can stay within the budget. But just keep in mind even though you have been pre-approved your loan can fall through anytime even up to the minute. This maybe because you altered your beacon score, for example buying a new car.
2. Do you know what you can afford:
Have we learned from the sub-prime mortgage fiasco? The bank tells you that you can afford this price, you think you can afford this price, or what you think maybe be comfortable payment, are not all the same. If you don’t have a budget in place all you need to do is make a list of your monthly expenses minus the rent. Subtract your total expenses with your work pay, and right then you will know what you can afford as a monthly payment or for whatever payment terms you have for your new mortgage.
3. Why be so picky:
Make a list on what you wish your new home will have. You do know that not all homes are alike. A first time home buyer has to compromise on something as funds are limited. If you become so inflexible you might be stuck paying rent for a longer period than you expected.
4. Make sure you know the condition of your new home:
Would you buy a used car without your mechanic inspecting it? I wouldn’t as I do not want to continue the head ache the past owner had with the car. Why would you not want to inspect your home? You don’t want to buy a home that will break your bank account because it needs fund to repair. You don’t want to buy a money pit, or a head ache of performing unexpected repairs. Always get your home inspected before you buy so you don’t get surprised 2 weeks after move in.
5. Consider other additional costs:
Your a new home owner now. You might think that you only have your mortgage payment. Not true, you own a home now. You will have other costs after the move in besides your mortgage payment. You will be responsible for: Property taxes, home insurance, repairs the home needs. If you purchased a condo you will be paying a maintenance fee regardless if anything needs fixing, your part of the building strata.
6. You must settle on important things:
You know you would like to have kids in the future, so why not get a 3 bedroom for your future kids. Kids are an important thing in our lives. Why would you buy a new home that will be small for you in the future? If you know you would like to have a bigger family in the future you will need a 2 or 3 bedroom and not a 1 bedroom.
7. Hire an agent or selling agent:
If you are seriously in the market to buy a new home for yourself you should hire an agent. As they are the people who must act for both the seller and buyer. Its their ethical rule.
8. Don’t be fooled, and fall in love:
Falling in love feels great, doesn’t it. I remember when I fell in love with my wife. Wait a minute I’m talking about mortgages and homes here. Sellers want you to fall in love with they’re homes. Just so they can put a much higher price tag on that home. But really all they did was minor upgrades, and cosmetic fixes (Rehab spaces). They want to play with your emotions just to get that high price tag. Know your budget, look for homes whose full potential that hasn’t been realized yet. The first time buyer should always be looking for homes they can add value to it, this will help boost equity to help you climb the property ladder.
9. No vision:
Lets say you don’t like the wall paper in the bathroom. Is that enough to dismiss the home? If the home meets all your requirements: location and size, why would you dismiss the house only because the washroom wall paper. Its OK that you can’t afford after the purchase to fix that wall paper. Sometimes its OK to live with ugly wall paper for a while just so you can get into a home that you can afford. Do not let little imperfection ruin a good home for you.
10. Never stop thinking of the future:
Can you predict the future? I know I can’t. So it would be unthinkable to predict the future of your new neighbourhood. Paying attention to to information avaliable to you now steer you away from unpleasant surprises in the future.