As a first time homebuyer there is a lot of excitement but it’s important not to get too wrapped up in the excitement and ensure you do your due diligence to ensure it’s the right decision and the right home for you.
Being a first time homebuyer can be one of the major accomplishments in the life of any person, no matter how young or old. This is why you need to look at this process with enthusiasm. Getting a house is an amazing thing, however many of us are wondering things such as “is buying my first home right for me?”. This is why we have to pay extra care in regards to the steps we follow.
First Time Homebuyer
As you already know, buying a home can be a hard and demanding thing to do. Renting a new place just won’t cut it, instead you will need to get your own home, but this does require a lot of attention. First of all, you need to study your income and see what house you can afford. This is when it’s important to engage a Mortgage Broker. A licensed Mortgage Broker can help you determine what income you need or what debts need to be paid down, to qualify for the purchase price you want.
Then you will need to create a list with all the requests that you have from your future home, so write them down, as this will serve you as a guide in the process of purchasing your dream house.
As a first time homebuyer, ensure you’re being realistic about what you can afford and be prepared to make sacrifices in order to ensure the new mortgage fits the budget. Your first home is likely not going to be your last, simply a stepping stone to your financial dreams.
What To Know Before Buying Your First Home?
Buying a home requires you to produce a down payment, but alongside that you also need to borrow some money from the bank. In order to do that you will need to contract a mortgage, and you will have to payback that money gradually, usually in around 25 years. The lower the interest rate you can find for the mortgage, the lower the monthly payments will be, so the interest rate is definitely a concern, but ensuring you are familiar with all of the terms, not just rate, may save you thousands of dollars in penalties down the road. This is where we, Mortgage Brokers, ensure that you are educated about the choice you are making and the restrictions and features that come with the product you choose.
You can also, try to opt for a shorter or variable term to keep payments low. Remember though, as Prime increases, so will your monthly payments and if you choose a shorter fixed term, rates will likely be higher come renewal time so this is where I come in, a licensed Mortgage Broker. I will walk you through all of this to ensure you’re making an educated decision.
Next you will need to work closely with a licensed Realtor, as buying a home is quite complicated so you do need his help in order to get things done quickly and with great result. Tell the agent all the info and requests that you have, and he/she will make sure that you get a house that you want.
When it comes to choosing your Realtor, make sure you interview more than one and don’t just take the first recommendation that comes along. You’re going to be spending a lot of time with this person and you need to know that they are working hard for you.
Buying A Home
Visiting the home is essential before you purchase. If you do like the house, most Realtors recommend that you have the house inspected by a home inspector to make sure that there’s no need for significant repairs after you purchase.
The lender you work with will appraise the house just to make sure they support the purchase price (ie. value) and once you’re able to remove the financing condition it’s about packing, meeting the lawyer and taking possession.
As a first time homebuyer, you need to get your team in place early on. Your team is your Mortgage Broker, Realtor, Real Estate Lawyer and depending on the property, an inspector and an appraiser. Luckily, I have many professionals that I work with around the city of Calgary and can recommend individuals who will do a fabulous job for you.
I look forward to helping you finance your dreams!
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