Need more tips from the experts on how you can buy your first home? You may feel overwhelmed by it because buying a home is one of the biggest purchases that a person can ever make. It is totally worth it so you don’t have to worry.
Here’s what you need to do when you’re buying your home for the first time.
- Get pre-approved for a mortgage.
Having a pre-approved mortgage can be an advantage when you plan to purchase a home. It is the first few things that you should do. Real estate agents will likely to work with you if they know that you have a pre-approved mortgage. Don’t go house-hunting if you’re not sure that you can totally afford it. Having a backup plan is a must.
B.C realtor Sarah Daniels said that “Sometimes people are just unaware that they may have a Sears’s card that they forgot to cancel and it’s caused a problem on your credit rating.”
- Find a real estate agent.
If you’re doing it for the first time, make sure to hire a reliable real estate agent to make it easier for you to go through the process.
- Set and stick to your budget.
Trisha Fineza Forbes with RBC said that “One of the biggest things you have to consider in this decision is your lifestyle and what that requires from a cost perspective.”
Sarah Daniels added that “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.”
Don’t spend what your bank approves you for.
- Be open.
Don’t expect to see a lot of houses with a gorgeous multi-million dollar value for the first time. Be open to what you can change.
Sarah Daniels said that “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.
What you should not do when you’re a first-time home-buyer:
- Stop thinking about it as your forever home.
Sherrod said “The reality is, on average, people only live in their first two homes for seven to ten years,” So remember that not everything has to be 100 per cent as you’d always imagined. They call it a “starter home” for a reason.
- Stop being too emotional.
It is common for first-time buyers to be too emotional according to the experts. Forget about it and just focus on what you should do next. Always remember that in real estate, you should consider location, location, and location.
“If you’re just going to buy something as a stopgap, then why are you buying it at all”, Sarah said.
- Stop making big purchases before getting approved for a mortgage.
You’ll get surprised but it is obvious why you need to stop doing it.
Sherrod said that “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 unfavorable or flat out deny them a mortgage. Remember, an approval is a contingent upon your current income, credit, and savings remaining the same. Do yourself a favor and halt on the spending until after you close on your house.”
- Don’t forget the closing costs.
It can always add up so put aside something like 1.5 to four percent of your purchase to cover up for it. Always save for the rainy day and unexpected expenses.
Source: http://globalnews.ca/
