Real Estate Agent in East York - Better Homes And Gardens Real Estate

10 Tips for First-time Home Buyers

31 August 2018
Kevin Hartley

After months – maybe years – of preparation, you’ve decided to finally go for it and purchase your first home. Congratulations! This is a very exciting time for you, but it is important to never let the anticipation of being a first-time home buyer get in the way of making crucial decisions in the buying process. 

10 Tips for First-time Home Buyers - bhgrelife.com

1. Determine your budget

The very first thing every first-time home buyer needs to determine is what he or she can afford. That will make your search significantly more effective. When calculating your budget, include all additional costs, such as insurance premiums, homeowners insurance, property taxes, HOA fees (if applicable), etc. Once you have determined your budget, you will know which homes are within your reach.

 2. Determine where you stand with lenders

 

2. Determine where you stand with lenders

To make the buying process easier, know where you stand with lenders. If you have a credit score of 720 or above, you can shop around for a loan with the lowest interest rate. However, if you have a lower credit score, you may be restricted to higher rates. There are still many promising options available, but this could certainly increase your budget.

3. Consider cost-saving moves

As a first-time buyer, you want to get as much bang for your buck. There are several potentially cost-saving moves you may be interested in. Look for properties that are in foreclosure, or shop in neighborhoods with a high number of properties for sale to get the highest value for your dollar.

 

10 Tips for First-time Home Buyers - bhgrelife.com

4. Determine your requirements

You are likely going into the home buying market with an idea as to what you’re looking for. Carefully consider the kind of home you want, and separate the needs from the wants. This will narrow down your search for a more effective home buying process.

5. Consider your potential down payment

As a first-time buyer, you probably have some funds set aside to make a down payment on your dream home. It is recommended to have approximately 20% of the purchase price available. However, there are several loan and mortgage programs that can help you make a down payment for significantly less. Know your options before you get started.

10 Tips for First-time Home Buyers - bhgrelife.com

6. Hire a local agent

If you’re interested in owning a home in a specific area, connect with a local real estate agent that is familiar with that area. He or she will have invaluable experience and knowledge about the neighborhood and local matters such as schools, new developments, and any issues.

7. Assess your preferred neighborhood

A neighborhood may be beautiful on the outside, but it is highly recommended to actually find out more about it before deciding whether it’s for you. Assess your preferred neighborhood by visiting it at different times, such as the weekends, late evenings, and rush hour. This will provide you with valuable information on a variety of factors such as traffic conditions, safety, proximity to grocery stores, and more. 

10 Tips for First-time Home Buyers - bhgrelife.com

8. Have your credit ready

Purchasing your first home is one of the biggest financial decisions you will make, and you want to be prepared. Gather necessary documents, such as your credit report, and identify any problems with your finances so you can fix them ahead of time.

9. Wait on any large credit purchases

As a first-time home buyer, it’s important to hold off on any large credit purchases, such as a lease or car loan, as it can impact your debt-to-income ratio. This number will directly affect whether you qualify for a loan. So, if possible, wait to make any large purchases with credit.

10. Season down payment funds

Some lenders require a seasoning of your funds, which means that your down payment must be in your account for a set amount of time. It’s crucial to know these conditions to ensure that the closing on your dream home isn’t delayed.

Now that you have these top 10 tips under your belt, it’s time to check out the housing market and find your dream home!

Thanks for reading. Questions or ideas for a future blog? Feel free to contact me here. 

TorontoMLS, realtor_toronto, real_estate_agent_toronto, Top_real_estate_agents_in_Toronto, best_real_estate_agent_toronto, top_10_real_estate_agents_toronto, ipro-Realty, Houses_for_sale_east_york, east_york_homes _for sale, east_york_real_estate, houses_for_sale_in_east_york_Toronto, TorontoMLS, Toronto_real_estate, Toronto_housing_market, Toronto_real_estate_market, realtor_toronto

Kevin Hartley, Broker is a Toronto based real estate Broker with Better Homes & Gardens Real Estate | Signature Service, Brokerage. @Home is his lifestyle blog, an expression of his passion for home keeping though MAKING (Recipes), DOING (DIY), BEING (Health/Wellness) and DWELLING (Home Ownership, Sales & Maintenance).  Content not intended to solicit clients under contract.

Partner with @home for client, blog, social media, advertising, sponsorship or contest opportunities. Learn more here!

Adapted from Better Homes & Gardens. © Meredith Corporation. All rights reserved. Used with permission.