As the season start to become cool and damp, there is five quick tips to get your home ready for fall/winter and help with heating costs and potentially larger maintenance work and
First Time Buyer Steps To Take
Dated: April 2 2021
If you’re thinking of buying your first home? Here’s what you need to know and steps to take when you’re first starting out.
STEP 1: FIGURE OUT HOW MUCH YOU CAN AFFORD.
Falling in love with a house you can’t afford can be heartbreaking. It’s best to avoid disappointment by first getting a pre-approved mortgage, before you start looking for your new home. That way you know your budget and what you can afford.
- First, decide how much you can afford for your down payment. The Home Buyers Plan lets you withdraw up to $25K per person (or up to $50K per couple) from your RRSPs – tax-free – to be repaid over 15 years. The bigger the down payment, the less principal you will owe, and the less interest you will pay.
- Don’t forget about closing costs, like insurance, legal fees, home inspection costs, land registration and land transfer fees. Add those to your moving expenses and service hookup fees, and they can add up surprisingly fast.
- Monthly housing expenses (mortgage, taxes, heat, etc.) shouldn’t use up more than 32% of your income. (If your combined monthly income is $5000, for example, 32% of that is $1600.) If you have car payments or credit card debt, the rule of thumb is that debt repayment shouldn’t be more than 40% of your income.
- 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. How many bedrooms do you need? Bathrooms? Do you want a home office? A garage? How about a big backyard? Hardwood floors? Eat-in kitchen? Consider your lifestyle and your stage of life. If you’re planning kids in a year or two, the studio loft might not be your best bet.
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? Would you like to walk to work or are you okay with a longer commute? Do you need to be close to good schools? Recreational facilities? Shopping? It’s all about decisions you need to make.
STEP 4: START LOOKING.
Go to open houses and ask the right questions. Visit mls.ca. Check the classifieds. Drive around the communities you like looking for For Sale signs. Talk to your REALTOR® about your needs and start looking at properties. Being a first time buyer you want to take your time to research.
STEP 5: BUILD A TEAM.
Put together the right group of experts to help you buy. 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.
You’ve found the perfect place – now it’s time to make an offer. An offer to purchase includes the purchase price you’re offering, chattels to be included in the purchase (like appliances or light fixtures), the amount of the deposit, the closing date and any other conditions.
As your REALTOR® I help you prepare your offer, and present it to the vendor. This offer is either accepted it or countered with another 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: GET A MORTGAGE.
Once you’re approved, you’ll need to decide what type of 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!
Real estate is about service first "this is your journey". Buying or selling a home with Kim, you can expect excellent professional & personable service. ....