Buying your first home can be both exciting and stressful at the same time. If you’re a first-time home buyer, you’ll have lots of questions about whether to buy, what you can afford, which type of mortgage to choose, and more. There is no simple answer to these questions as each situation is unique and there is no such thing as one size fits all in real estate market.
I remember getting excited and stressed when I decided to purchase my first house, I must say I was very set on certain things (front double garage) and also flexible on things that weren’t important to me at that time (proximity to Schools). It’s good to make a list of negotiable and non-negotiable, but before making this list……The first thing you’ll need to determine is what your long-term goals are and then how home ownership fits in with those plans. It could be that you’re simply looking to transform all those “wasted” rent payments into mortgage payments that actually lead to you owning something tangible. Others see home ownership as a sign of their independence and enjoy the idea of being their own landlord. Narrowing down your big-picture home-ownership goals will point you in the right direction. Once you have decided to embark on this exciting journey……you can ask yourself following questions.
- What type of home best suits my needs?
You have several options when purchasing a residential property: a traditional single-family home, a townhouse, a condo, a co-operative or a multi-family building with two, four or more units. Each option has its pros and cons, depending on your home-ownership goals, so you need to decide which type of property will help you reach those goals.
- What specific features will your ideal home have?
While it’s good to retain some flexibility in this list, you’re making perhaps the biggest purchase of your life, and you deserve to have that purchase fit both your needs and wants as closely as possible. Your list should include basic desires, like neighborhood and size, all the way down to smaller details like bathroom layout and a kitchen that comes with trustworthy appliances.
- How much mortgage do you qualify for?
Before you start shopping, it’s important to get an idea of how much a lender will actually be willing to give you to purchase your first home. You may think you can afford a $800,000 place, but lenders may approve you only for $600,000 depending on factors like how much other debt you have, your monthly income and how long you’ve been at your current job.
- How much home can you actually afford?
On the other hand, sometimes a bank will give you a loan for more house than you really want to pay for. Just like with the purchase of a new car, you’ll want to look at the house’s total cost, not just the monthly payment. Of course, looking at the monthly payment is also important, along with how much down payment you can afford, how high the property taxes are in your chosen neighborhood, how much homeowners insurance will cost, how much you anticipate spending to maintain or improve the house, and how much your closing costs will be.
- Who will help you find a home and guide you through the purchase?
A Real Estate Agent will help you locate homes that meet your needs and are in your price range, then meet with you to view those homes. Once you’ve chosen a home to buy, these professionals can assist you in negotiating the entire purchase process, including making an offer, getting a loan, and completing paperwork. A good real estate agent’s expertise can protect you from any pitfalls you might encounter during the process.
At this point you might be feeling excited and overwhelmed, and I can totally relate with those feelings as I was first time home buyer once and I had tonnes of questions. I can take that stress away from your shoulders and turn first time home buying process it into a pleasant experience.
Give me a call and let’s meet informally to discuss your Real Estate goals.
HAVE COFFEE WITH JAG WALIA.