Buying your first home is a big step. It’s a very exciting one, but it can also be quite overwhelming. However, this is something that plenty of people have done before, and you’ll be able to do it, too. This guide will let you know where to start when buying a house for the first time.
Before You Start Your First Search …
You need to look at the financial side of buying a house. Understanding your finances and how big of a mortgage you can afford will determine your budget for your home, so it’s important to do your research here.
The first thing you’ll need to look into is mortgages. There are multiple ways you can get your mortgage, such as from banks or mortgage brokers, so it’s essential to shop around and get the best interest rate you can. Different places will be able to tell you how large of a mortgage you will qualify for, which will let you know how much you can spend on a new home. These assessors will determine the amount of your mortgage based on factors like your credit score and employment.
One of the biggest hurdles for new home-buyers is the down payment. The down payment is the amount of money you need to pay for a home upfront and is something you will need to save up for before you can purchase your house. In Canada, the absolute minimum down payment for a house is 5%, but that can go up depending on the property. So if you’re buying a $100,000 home, for example, you’ll need to have at least $5,000 saved up for the down payment. However, you can always pay more than the minimum down payment if you have the money, which will lower your required mortgage.
Finally, you need to look into home insurance, as you’re unlikely to get a mortgage without it. On top of that, it’s just a good idea to have insurance in case something happens.
There are various ways to get insurance, and just like with your mortgage, you should shop around to ensure you’re getting the best deals.
Once you’ve got your financials covered and you know your budget, you’re ready to start house hunting!
Hiring a REALTOR®
The first step you’ll want to take at this point is to hire an experienced real estate agent. While you can look for a home on your own, a REALTOR® will make the entire process much easier. If you’re a first-time buyer who’s unsure about where to start when buying a home, a real estate agent can easily guide you through the whole process.
Finding the Right Home
Once you’ve found the home that seems perfect for you, it’s time to gather more information. With your real estate agent, you can ask the current owners plenty of questions to ensure the house is in good condition and meets your requirements. You should also get a home inspection done so that there aren’t any surprises when it comes time to actually purchase.
If everything is looking good and there aren’t any reasons cropping up to not buy the place, all you need to do is put in your offer, which your real estate agent can help you with. From there, your offer can be accepted, rejected, or you can enter negotiations.
Buying a new home for the first time may seem like a lot, but the process can be simplified, especially when you have professional help. Good luck on your search for your first home, and congratulations on reaching this milestone!
Contact a Fully-licensed REALTOR® today!
Looking for an experienced REALTOR® that specializes in real estate across Southern Georgian Bay? At Locations North we are focused on helping you unlock your future.