5 Quick Tips for Buying Your First Home
Tuesday Aug 02nd, 2022
Planning to purchase your very own home but confused about what you shall do? Purchasing your first house is one of the most significant financial choices you'll ever make, but it can also be one of the most confusing. What factors should your clients consider before purchasing real estate?
Well, worry not, as you are in the right place for a consultation that will give you tips on what you shall consider in buying your first home.
Tip #1. Get Pre-Approved
You can do that with a mortgage lender, a mortgage broker, or your bank. There are many options when you’re getting your pre-approval. And if you’d like some guidance just reach out to us, the contact information is available below.
Tip #2. Hire a reputable Realtor®
We all know that realtors earn a percentage of the sale price of a property, which makes some buyers wary of using one: they feel it raises the entire cost. Keep in mind that the commission is paid by the seller, not the buyer. A knowledgeable realtor® can help you through the whole purchase process, from price negotiations to house inspections.
Tip #3. Needs and Wants Assessment
It can be done virtually. Assess the needs and wants.
You’ll go through some consultations and eventually find out that you may need three bedrooms but you want four bedrooms. Maybe you want a swimming pool, but maybe you don’t need a swimming pool.
Now, why do we need to do needs and wants assessment?
One of the reasons we do the assessment is to narrow down (out of the thousands of properties that you might be scrolling through on the internet) what fits what you’re looking for because finding what you’re looking for is the ultimate goal.
Tip #4. Take notice of your priorities
While you are out searching for a home, take notice as you drive around to friends’ houses, or you’re going through a neighborhood – take notice, does the house that you’re looking at have sidewalks?
Maybe it does, maybe it doesn’t.
Does that house that you’re looking at have a metal roof? Does it have a shingle roof? Or a tile roof?
Start to take notice of things that might be of interest to you.
Here’s an example:
Some people don’t think about it but there are homes with self-closing cabinets. To some people, that’s very important, but for one particular client, it is a need. They will not buy the property unless they have self-closing cabinets, and that might be the same for you! There may be some things that you feel you absolutely must have because ultimately, this is your future home that we’re looking for.
Tip #5. Purchase the house you know you can afford.
This may differ from the amount that your mortgage company believes you can afford. Some lenders suggest that you can afford mortgage payments totaling about a third of your gross income, while others suggest closer to a quarter of your gross income for housing-related costs such as a mortgage, insurance, and taxes. There are several factors to consider, including your projected income, interest rates, mortgage type, and the market. Request assistance from your mortgage broker in understanding what is at stake.
There are lots of things to consider when buying a property, the process might get overwhelming. There are many factors to consider. Think about the type of home that will best meet your needs, what you can afford, how much financing you can obtain, and who will assist you in your search. When you have a moment, contact us to start the home buying process. We will guide you through each step.