Things to consider when Buying Your First House

Tips to consider before Buying Your First Home

Buying a home can be very exciting and even somewhat confusing as to
the steps that should be followed, especially if it is your very first time! Lots
of young people in Canada are getting ready to buy their first house, and
here are some tips to consider before buying your first home in Canada:

1. It’s a good idea to get pre-approved for a mortgage
So, now you have started to check out all the ads for homes for sale in the
area you want to live. When you finally find that dream home, being pre-
approve for a mortgage will increase your chances of getting the home you
desire. That’s because the realtor will see that you are very committed to
purchasing a house since you have gone to the trouble of getting a lender
to preapprove you up to a certain amount, so the realtor will know they
don’t have to worry about the sale going through.

Plus, if you get preapproved, you will also already know how much you are
allowed to borrow on a mortgage based on your income, debts, etc. This
means you won’t have to worry about falling in love with a house you
already know is out of your price range.

2. Plan on saving up a down payment
It can be quite expensive buying a house in Canada, so the majority of
people don’t buy a house without saving up for the down payment. Usually,
they make some sort of down payment and then the rest is borrowed from
a mortgage lender.

If you are able to save up enough to make a 20 percent down payment,
then not only will it make your final mortgage payments lower, it will also
make it easier for you to get that preapproval talked about in the
aforementioned tip.

3. Find a knowledgeable real estate agent.

It is often advisable to use your own real estate agent when searching a
house for sale, however, it can be very helpful for first time buyers, as they
likely aren’t knowledgeable about all the ins and outs of home buying.
Many home buyers tend to search listings online and contact the listing
agent. This isn’t always the best idea. It is strongly advisable to get your
own personal real estate agent who is dedicated for your benefit and not for
the seller or the listing agent. Its always helpful having someone who can
lead a buyer through this sometimes confusing process can make the
whole thing much less stressful. For instance, a real estate agent will not
only know which houses are available in the neighborhood you desire in
your price range, they would also be able to help buyers with house
evaluation, understanding property prices & having someone negotiate
your best interests.

4. Remember that owning a home has more expenses than just a
mortgage payment

When you buy a house, don’t forget to include all the expenses involved.
It’s not just a mortgage payment that you have to budget for! You also have
to include things like interest rates, property taxes, cost of homeowner’s
insurance, cost of your monthly utilities, cost of commuting to and from
work or school, and the cost of maintenance or future repairs and
upgrades. These and other expenses must be taken into consideration
when you are a new home buyer so you won’t get in over your head.

5. Make a checklist
Buying a home can be a very emotional timeframe. It’s vital to not get too
emotional when you are deciding on a house to buy. The best way to keep
your emotions in check is to make a list of the must-have items you want in
your new house, as well as the nice to have things. This could include
things like the distance the house is from your work or school, if it’s close to
amenities like grocery stores, gas stations, doctors, etc., or anything else
you deem important.

Make a copy of this checklist and take it to each of the houses you go look
at. Then, if the house meets an item on the list, check it off. This way you
can compare houses for sale by using this checklist and you won’t fall
victim to emotions and end up falling in love with a house that doesn’t
actually meet your needs in the long run.

6. Beware of tricks of the trade sellers use
Like it or not, a seller is going to try every trick in the book to sell their
house. It’s not that they will be dishonest, but they may not answer
questions you don’t think to ask. For instance, if you notice a stain on the
ceiling, it’s probably a good idea to ask if there has ever been any leaks
anywhere in the house.
Another thing to watch out for is home staging. This is when the seller has
employed professionals who stage the house with perfect furniture,
accessories and even do things like bake fresh cookies to make the house
smell inviting. Staged houses sell faster and for higher amounts than
unstaged homes, so you have to be able to see around it and determine
the realities regarding the home. For instance, in one case a stager set up
a bedroom with matching lamps on the sides of the bed. It was very
appealing until the potential buyer noticed that there weren’t even any plug
sockets! So, beware of staging tricks to make you want to buy a home.

7. Find out about the area demographics
Prior to buying a home, it’s a good idea to check out the amenities and the
demographics of the neighborhood. For instance, if there are a lot of
renters in the area, it could make your property value go down if the homes
chance hands often. Or if you have children, do you want to live in an area
where there are mostly senior citizens who may not be so glad you have
noisy kids playing in the backyard? Or what about pets? It’s a good idea to
see how pet friendly things are or if there are any dangerous pets in the
area.

____________________________________________________________________
Annie Yu – 1-(905)-999-7774
Please feel free to give me a call
Local Licensed Realtor at SKYHUB Canada.