Buying a home can be a scary process, especially if it's your first time. There are many things to consider and it can be a very stressful process. Thankfully, there are a number of things you can do to ensure everything goes smoothly. Here are four things you should consider when buying your first home.
Be Sure to Get Pre-Approved for A Mortgage
It can be hard to find a Real Estate Agent who is willing to sell you a home if you're not pre-approved for a mortgage first. Plus, you don't want to risk finding the perfect home only to discover you can't really afford it. No matter what your yearly salary is, if you have dings in your credit, it could affect the mortgage approval process. When you're being approved for a mortgage, your credit is one of the main things considered, along with your income and the amount you will be putting down. Most first-time homebuyers aren't able to put down the typical 20 percent when purchasing their first home, but the bigger the down payment, the smaller the loan you need to take out. Many young homebuyers may be able to pull money out of their Registered Retirement Savings Plan as a way to increase the amount of their down payment.
Find a Good Agent
Once you've been pre-approved for a mortgage and are aware of how much you can afford to spend, it's time to look for a REALTORŪ. This isn't something you need to do when buying a home, but it's certainly recommended. A real estate agent will be able to guide you through the process and use their knowledge and contacts to get you the best deal on your perfect home. Not to mention, you can't go wrong by having someone in your corner to be your advocate during the home buying process.
Be Willing to Compromise
You may be going into the home buying process thinking that you'll get your dream home right off the bat. But in reality, you may need to make sacrifices. Remember, you can always renovate, and a first-time homebuyer, this likely won't be your forever home, so everything doesn't have to be perfect. Make sure you're not focusing on cosmetic things, but instead considering the location, layout, size of the lot, and the condition of the home.
Closing Costs Shouldn't be Forgotten
The Canada Mortgage Housing Corporation (CMHC) suggests putting aside an extra 1.5 to four percent of the purchase price of your home just to cover the closing costs. These extra costs at the end of the buying process can really add up. You should also be sure to put aside a little extra dough in case you need to make a major repair later on. It's never a bad idea to think ahead.
Buying a home for the first time can be an exciting and terrifying process, so it's important to consider all of these things before you dive right in. Be sure to do as much research as possible and consult with a professional throughout the process. Having as much information as possible will help you ensure you get the home of your dreams at the right price.
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