The top 10 checklist for first-time home buyers
- Are you financially stable? Have you been working in the same industry for one year? Have you been self-employed for more than two years? Do you have some savings for your down payment
- Ready to shoulder the costs of home ownership? Remember that in addition to mortgage payments there are repairs, maintenance and unexpected costs. Do you have the time and money to devote to home maintenance? What if your furnace dies? How much is a typical water and sewer bill? What do you mean, there’s dry rot in the attic?
- How much is too much? Add your debt payments to your household expenses. The Canadian Mortgage and Housing Corporation (CMHC) recommend your monthly housing costs should not exceed 32 per cent of your gross income.
- Your credit rating. Before getting a mortgage, lenders will want to see how well you’ve paid past debts and bills. If you have no credit rating, start building one. Apply for a credit card with a good interest rate, make small purchases and pay the bill in full when it comes in.
- Get pre-approved for a mortgage.
- Understand your terms. It’s a good idea to research mortgage terminology prior to meeting with a mortgage specialist so you understand commonly used words and phrases such as variable rates and amortization. Ask friends or family for help or go online.
- Find a realtor. Ask trusted friends or family members. The other option is to select a realtor who specializes in a certain area or type of real estate such as first-time home buyers or condos. If that’s not doable, take notice of the for sale signs in the neighbourhood you want to live. Whose name continues to pop up again and again?
- Figure out where you want to live. Do you want to be near Go Transit, highways, schools or are you looking to live near restaurants and nightlife?
- What kind of a house are you looking for? Know the difference between a stacked townhouse, a semi-detached house and a duplex. Bone up on the language of buying.
- Speak to a lawyer. Know your closing costs. Get a quote from two or three lawyers on what fee they charge and what they bill for disbursements. Closing costs can also include land transfer tax, mortgage insurance and a home inspection. Budget 3 to 4 per cent of the purchase price for closing costs.
This entry was posted
on Thursday, September 26th, 2019 at 9:07 pm and is filed under Buying and Selling a Home, Featured Articles, Freeman Magazine, Uncategorized.
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