What to Know When Buying Your First Home

Posted by Justin Havre on Tuesday, August 7th, 2018 at 9:44am.

A Short Guide to Buying Your First HomeWhether it's a first home or the first home in a few decades, new Canadian home buyer may not know or fully understand the stages of finding and purchasing their own property. Using this short guide can make it easier for everyone to clarify and work through each step to fulfill their dream of homeownership.

For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.

Defining the Budget

A home buyer's budget is determined by a variety of different factors, and buyers are often shocked at what they can or cannot afford. No matter how much a buyer is pre-approved for though, they'll need to visit a variety of lenders to get a true idea of their purchasing power. A good mortgage broker or bank lender can be a true asset in finding out how much of a home buyers income should go towards the purchase of a home. A mortgage lender can also lend assistance with how much money will be needed for a down payment and at closing as well.

Searching the Area

There are a few things to keep in mind before a home buyer prioritizes their neighborhoods:

  • Future goals: Home buyers need to consider their current needs as well as their future goals. For example, a home in the country may not remain in the country for long if the city continues to expand in the direction of your new country home.

  • Shifts in the economy: When job security isn't always as secure as home buyers would like it to be, it helps to pick a central location in a city. This way, the commute doesn't become a burden on homeowners who may need to change jobs (or even careers) while residing in the property.

  • Hassles and convenience: From late-night noise to the proximity to restaurants and grocery stores, homeowners need to consider what it will be like to really live in a neighborhood day after day.

Reaching Out

As soon as a buyer knows their approximate price range and which areas they'd like to see, it's time to reach out to a real estate agent who can help take buyers the rest of the way. A real estate agent knows how zoning regulations, title companies, and home inspectors relate to the needs of their clients. They can make recommendations on mortgage brokers and lenders. Finally, they make recommendations about how much to offer for the new home and what contingencies a buyer may want to include within their offer.

Wrapping Up

A real estate agent helps buyers take care of the paperwork and gives helpful advice about the best type of mortgage for the home. However, it's up to the buyers to settle their financial affairs with a lender. They'll need to account for not just the cost of the home, but also the real estate agent fees, closing costs, and any necessary repairs that must be done on the home. Closing costs include everything from home inspection costs to lawyer fees, and can add up to 4% of the total cost of the home to the final price. Once everything is in order, a lawyer typically receives the funds from the lenders before the buyer puts down their deposit. It's only then that the seller receives the funds so the property can be transferred.

Homeownership is a responsibility and it's not always easy to coordinate the details. However, with a little extra planning on the part of the home buyers and a lot of help from the right East Calgary real estate agent, the process can be a lot smoother.

For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.

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