What to do when you’re a first-time home-buyer:
1. Find a REALTOR® that works hard for their clients such as DEZ MAHAL
- While having a real estate agent is not necessary when buying a home, it is recommended — especially if it’s your first time going through the process. Having someone who is knowledgeable about the market leading you through the process could take a big weight off your shoulders.
2. Stay mindful of your budget
- You may be able to afford your own home but you’re also going to have to realize that you might be giving up going out for drinks after work or out for dinner with friends because you’re going to be paying a mortgage now. Consider your lifestyle when deciding how much of a monthly mortgage you can afford.
3. Be open.
- Wallpaper can be removed, walls painted and cupboards changed. The things you should be more concerned about is the size and layout, along with the condition of the roof, plumbing and hot water tank.
What not to do when you’re a first-time home-buyer:
1. Don’t think you’ll be in that home forever.
- “The reality is, on average, people only live in their first two homes for seven to ten years,”
2. Don’t be too emotional
- Experts say this can be quite common with first-time buyers. Check the emotions at the door and think with your head.
- Always keep in mind the re-sale value of the home you want to purchase, and remember that in real estate it’s all about location, location, location. “If you’re just going to buy something as a stopgap, then why are you buying it at all?”
3. Don’t make big purchases before getting approved for a mortgage.
- That may seem fairly obvious, but you’d be surprised.
- I’ve seen it happen time and time again where buyers run out and finance a car or spend a large amount of their savings and then the bank will adjust their loan terms unfavourably or flat out deny them a mortgage,”
- “Remember, an approval is contingent upon your current income, credit and savings remaining the same. Do yourself a favour and halt on the spending until after you close on your house.”
4. Don’t forget about closing costs.
- Closing costs can add up. The CMHC recommends putting aside anywhere from 1.5 to four per cent of the purchase price to cover them.