The purchase of your first home is an exciting experience; yet, it also has the potential to be an intimidating one, particularly if you are unsure of how to get the process started. Because of this, we have put together a simple checklist for first-time buyers looking for real estate in Ontario.
1. Think about what you can afford
You should have a rough estimate of how much you may be able to afford and how much your mortgage payments would be before you start looking for a property. This will help you focus your search. This can help you define a realistic price range so that you may strike a balance between the demands of home ownership and the requirements of your lifestyle. Look at a range of options – would it be better to buy a condo rather than a house as a first-time buyer?
2. Cast your eye over your credit score
Not all home buyers are totally free of financial obligations at the time that they purchase their first property. Extenuating circumstances, student loans, and vehicle payments are all things that are a natural part of our life, and as a result, there are instances when we do bring some debt into our very first house purchase.
However, if it is at all possible, you should aim to clear all or as many of your debts before you purchase a home.
Pay off any outstanding balances on credit cards and any modest loans you may have.
3. Make sure you have enough for the down payment and closing costs
When you first start looking for a house, it will be to your benefit if you can put aside twenty percent of the total cost of the home you want to buy. It is quite fine if you are unable to! You can purchase a home with a smaller down payment, but you should still save as much money as you can before doing so. In addition to this, you will need money to pay for the closing charges. These figures are based on the price that your home was purchased for, so for the time being, just put aside as much money as you can.
4. Get pre-approved for your mortgage.
After you have completed all of these steps, it is time to start looking for a lender who will pre-approve your mortgage.
If you get pre-approval before you start looking at houses, you will be able to determine exactly how much house you can afford. You are able to shop around because you are able to speak to a number of lenders in order to obtain the best possible interest rates and the loan that is most suitable for your requirements. You will be able to determine how much house you can afford if you get pre-approval before you start looking at houses.
5. Look for a real estate agent
A good real estate agent will help you understand contracts, make sure you’re not being taken advantage of, give you great advice, do a lot of the research for you, handle all the paperwork, help you negotiate, and do a lot more.
6. Make appointments for home tours, and go to open houses.
This is the portion that a lot of folks look forward to the most! This is also the point at which all of your hard work and pre-approval will truly pay off. You will be in a better position to hunt for homes that meet both your requirements and your financial constraints if you have been keeping a detailed list of your goals and needs for the past few months. You won’t waste any time or effort, and you’ll make a lot of progress toward buying your first home.