First-Time Home Buyer Plan
June 14, 2018 | Posted by:
Navigating the World of Home Buying
Don't rush and fall into love with a house you can't afford. It can be heartbreaking if you don't prequalify for a mortgage.
Step 1: How much home can you afford?
- Get pre-approved for your mortgage. It’s a good way of finding out how much you can borrow – and it speeds up the process once you’ve found the home you want to buy.
Step 2: Figure out what type of home is right for you.
- Sit down and make a list of must-haves and nice-to-haves. Be realistic, but be clear about the features you can’t live without.
Step 3: Decide where you want to live.
Living in an area you like is as important as buying a home you love. Do you want a busy urban lifestyle, a house in the ‘burbs, or a quiet place in the country? Do you want to walk to work or are you okay with a longer commute? Do you need to be close to good schools? Rec facilities? Shopping?
Step 4: Start looking.
Talk to your REALTOR® about what you're looking to buy. They will have you looking at dream properties in your price range in no time at all.
Step 5: Lean on professionals.
Start with a REALTOR® you trust, then look for a reputable lender or mortgage broker, a lawyer, a home inspector and an insurance broker. Your REALTOR® works closely with all of these professionals, and will be happy to recommend people you can depend on.
Step 6: Make an offer.
Your REALTOR® will help you prepare your offer, and will present it to the vendor, who will either accept it or make a counter offer (which asks for a higher price or different terms). You can accept or reject the counter offer. If everyone agrees, the home is yours. If not, you can make another offer, or you may have to keep looking.
Step 7: Secure your mortgage.
Once you’re approved, you're mortgage broker will help you decide what mortgage works best for your needs. Will you go with a fixed or variable interest rate? Will your mortgage be closed or open? What will your amortization period be? Will you make payments monthly, biweekly or weekly? Your mortgage broker or lender can help you find a mortgage that suits your needs – and saves you the most money in the long term.
Step 8: Move in and enjoy!