The overall process of purchasing your first home can bring about numerous emotions ranging from excitement to stress, anxiety to comfort. Here are my recommendations to anyone thinking about buying a condo or home for the first time.
1. ARE YOU IN THE MARKET OR JUST BROWSING?
This is not a decision to be made on the fence, you must be definitive about buying. This allows for a clear vision and understanding of what you want and helps you deal with the stressful process. Don’t rush into anything, but do not drag your feet either.
2. DON’T BITE OFF MORE THAN YOU CAN CHEW!
Its ever so important to qualify yourself before you begin prospecting properties. It is vital you know exactly what you can afford and what your comfortable borrowing. CAUTION – because you can afford monthly payments now, doesn’t mean you can afford the home, allow for a buffer that maintains your current lifestyle, theres no point in being “House Poor”
3. HIRE A REAL ESTATE AGENT…008!
As a buyer aligning yourself with an agent who’s willing to educate you on the market and allow you to make the best decision, is the way to go. There is no cost for a buyer/agent agreement, the seller is required to cover the agent fees. Building a solid relationship with an agent makes your life easier as you choose to sell your home down the road or embark on investment properties. Let an agent work for you!
4. UNDERSTAND ALL THE COSTS IN ADDITION TO THE PURCHASE PRICE!
You need to be aware of certain closing costs associated with a home purchase.
- LAND TRANSFER TAX
- BANK APPRAISAL FEE
- MORTGAGE BROKER or APPLICATION FEE
- LEGAL FEES
- MORTGAGE INSURANCE FEE
5. MAKE AN OFFER!
This is the reason your due diligence is important, if your in the market, understand what you can afford, know what you want and fully educated, what else is there to do, but make an offer!