4 tips buying your first home!
Thinking of buying your own place? It’s normal to feel a little overwhelmed. After all, it’s the biggest purchase you can make.
- Get pre-approved.
Some real estate agents won’t even work with you until you’ve been pre-approved for a mortgage. This is an important first step in the home-buying process. You don’t want to start house-hunting and fall for a home you can’t afford.
Plus, there may be problems with your credit that you don’t know about. Sometimes people are just unaware that they may have a credit card that they forgot to cancel and it’s caused a problem on your credit rating. Your credit is one of three factors that will be considered before you get approved for a mortgage. The other two are income and your down payment.
Of course the bigger the down payment, the smaller your loan (and overall interest charges) will be. One way to help boost your down payment is to borrow money from your RRSP.
- Find a real estate agent.
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.
A good agent will more than likely have a network of individuals, such as…inspectors, mortgage advisors etc.
- Stay mindful of your budget.
One of the biggest things you have to consider in this decision is your lifestyle, And what that requires from a cost perspective. 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.
Ask yourself if you lost your job and weren’t working for three months, would you be able to afford your home? Or are you stretching yourself too thin? You should also keep that in mind during your search. Just because a bank approves you for a certain amount, doesn’t mean you have to spend it all. You don’t want to be house poor
- Be open.
You may walk in and it may have horrible wallpaper and the kitchen needs updating. But the fundamentals are there and you can add to it down the road…So just have an open mind. 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.
OH BY THE WAY, I’M NEVER TO BUSY FOR YOUR REFERRALS!
Sutton Group Grande Prairie Professionals