First Time Home Buyers Guide

Being a first time buyer, you might be confused with all the process of home buying, and major being related to the financial know how. Being actively working in real estate market, I have seen that first time home buyer tend to get anxious with things and I will try to cover all the aspects and tips here that can help you get maximum information here at just one single place.

Check credit score / Pre-Qualification
Even if you are considering buying a home in Brampton in next few years, you should regularly monitor your credit score as this plays an important role in qualifying for a mortgage with the best rate. In the beginning, the costs breakdowns may seem small, but if you calculate yearly costs, you might seem to be paying a huge sum of money that could have been avoided in first place. There are many factors effecting your credit score, not just paying bills on time but also your credit limit utilization ratio. Sometimes, a damaged credit can be repaired in a few months time, so have a good knowledge of credit score numbers can really help you to be future proof.

Evaluate your average savings and spending’s / Cash Flow
By know exactly of how much your saving-spending ration is, your can have a good idea of how much your budget is for buying your dream home and its future affordability. While your do this, make sure your also calculate your future expenses, that will not only include mortgage cost but also taxes, hydro, cable, minor repairs and other bills. Do check our Mortgage Calculator to find your monthly home loan payments. Once you acknowledge that your are comfortable with the total calculated expenditures, also make sure to have a little backup money with you that can help you in case of any job or other uncertainties. Incorrect budgeting can be disastrous for home ownership plan so we always that its better be on the safe side than being sorry.

Keep an eye on recently listed properties
May be that seem to be irrelevant, but sometimes, have a right knowledge of the homes being sold and what those houses have to offer, things like – parking spaces, lot size, yearly taxes, separate entrance to basement, building age, recent renovations etc, as these things can have a major role to differentiate two houses of same size to have major value difference.

Evaluating hidden costs
Take some advice from friends about their hidden costs they discovered while buying a new home. Examples of hidden fee are closing fee, new appliances, moving costs, initial repairs, property insurance etc and its best to get a home inspection done before finalizing the buying process.

Zeroing on a highly professional Real Estate Agent
Real estate market is vast with lots of realtor’s available to help you out but the end decision relies upon your proper consideration of a professional that not only will get you a home, but will be pro-active during his/her overall process and being working full time as a real estate agent with all the efforts being put in. Have a realtor that has ample of time for you and is not just over busy to deal with.

A serious approach
Finally you and your agent should be zeroing on only the exact match properties and not making offers to not so relevant available options. Spending time on properties that you potentially wont end up buying will be a huge constraint on your available time. Also make sure, your don’t end up being over-emotional during the bidding, as going over your spending range can do more harm than good.

If you have any other question that you this has not been answered on our website, please do call me at 647.533.5000 and I will try to help you in my best possible way.