Buying a home
Getting a mortgage - Fear of being rejected for a home loan is one of the main concerns for homebuyers. To lessen the stress, you may want to get pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage when there are multiple offers for a specific home. The fact that your loan has already been approved is of great value to the seller: because it shortens the purchase process and there is less of a chance that the buyer will back out of the sale.
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Mortgage Payments - The costs involved in the purchase of a home can be overwhelming to first-time buyers. However, with the help of a real estate professional or mortgage broker, you can calculate how much you will be able to pay each month in mortgage payments, and from there, what prospective homes offer a feasible payment plan.
Down Payment - The down payment amount varies depending on the value of the home you choose and your mortgage lender. And in some cases, home buyers can purchase a home with no money down. Although it varies from province to province, there are lenders that will finance 100%. Your mortgage broker will be able to explain the different options available to you.
Closing Costs - First-time buyers often forget to consider the closing costs when making an offer on a home. Property transfer tax can be quite significant. Add that to the down payment and you’ll have quite a sum to raise before the final papers can be signed. However, a smart buyer takes this into account before making an offer, and with some professional help, the costs can be estimated in advance.
Making offers - Don’t feel pressured into making an offer on the first home you see. This is a common mistake of many first-time homebuyers. Make sure you view different homes to get a feel for the marketplace. When you do decide on a home to make a bid on, work with your real estate professional to get all of your questions answered first before making an offer. But don’t wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.
Condition of the Home - Buying a “problem” home is another fear of first-timers. A home that needs major repairs can become a costly venture. And, unless the asking price is adjusted to reflect the hidden repairs needed, chances are the home is not worth as much as the seller is asking for it. To avoid unfortunate surprises, your real estate professional may advise you to hire a home inspector as a condition of the offer. That way, you know what you are getting into.
Above all - Remember that there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. Your real estate professional can be an invaluable asset in helping you make educated decisions so that your home purchase is a rewarding experience. |
