The 4 Essential Things First-Time Homebuyers Should Know.

Real estate professionals and clients discussing home purchases, insurance or real estate loans. Home sales agents sit at the office with new homebuyers in the office.

You’ve worked hard and saved enough to buy your first home finally. Regardless of whether you’re in your twenties or finally taking the plunge in your forties, buying a house for the first time is exciting and a little intimidating at once. But if you make sure you know the basics of home buying, you’ll be a homeowner before you know it. 

Budget And Mortgage

Before you start saving for a deposit, you need to figure out roughly how much you can realistically spend on a house and what percentage of that you will need to have for the down payment. Be sure to also factor in the additional closing costs that you will have to pay at the time of purchase. Once you have your down payment saved, it’s time to apply for a mortgage. Having a mortgage pre-approval before you start house hunting puts you in a stronger position than waiting to apply once you’ve found a property to make an offer on the house.

Choose A Real Estate Agent

Finding a local real estate agent to help guide you through the local real estate market has many benefits. It’s easy to search for properties online nowadays, but you can access their local knowledge by talking to a person. They will also let you know of any new listings before they come on the market, which is a serious advantage for Real Estate in Canada as the market moves fast. 

Decide On The Best Areas For You. 

Before you start looking, spend a bit of time researching the areas you want to look in, even visiting neighborhoods if you are unfamiliar with them. This way, you will have an idea of which areas have the amenities you are looking for (e.g., proximity to nightlife and public transport, or if there are good schools) while being affordably affordable to your budget. It is essential to be realistic and perhaps make some compromises. If you don’t get a large mortgage, setting your heart on an expensive suburb will cause you problems and unnecessarily drag out the process.

Get All The Help You Can

Many areas offer help and incentives to first-time buyers to help more people get onto the property ladder. Be sure to thoroughly research what is available to you in the area that you plan to buy in, as there is the potential to save a significant amount of money. Check also with your financial institution if they have any schemes of which you can take advantage. Also, don’t forget to use your Tax-Free Savings Account (TFSA) when saving up your deposit, which will help accrue it faster.

By sticking to these four simple things, you will be able to secure your place on the property ladder with as little fuss as possible (leave that for the house warming party!) and maybe leave extra money in your pocket for decorating and furnishing too.

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