Buying a house for the first time can be exciting. At the same time, it’s not uncommon for people to feel overwhelmed seeing as there are so many steps involved as well as requirements that need to be fulfilled. Anxiety is normal when a person is making one of the biggest financial decisions of his/her life. But no worries, as long as you keep certain things in mind –
First Time Home Buyer
- Your Financial Health – Owning a house is much more expensive than renting one. Maintenance and upkeep costs will only add to these expenses. Do a serious audit of your finances and see whether you are truly ready to get a house. Pay off all your debt and start saving for the down payment as well as the closing costs.
- Review your expenses and know your credit score. To be qualified for a loan, a good credit score is necessary. A history of timely bill paying and a maximum debt-to-income ratio will prove helpful.
- How much house can you actually afford? Keep in mind the additional monthly expenses other than the monthly payment like property taxes, insurance, closing costs among others. You should borrow only the amount you can pay for.
- Find out how much mortgage you qualify for. You may not qualify for the amount you think you qualify for. The things that factor in this process are your debts, income, and whether you have a steady job. You may want to get pre-approved for the loan before making an offer. Shop around and compare interest rates for lenders to find the best deal for yourself.
- You may find yourself the Perfect House, but making the decision based on just whether you like the house is not enough. Do your research and find whether the neighborhood is a good fit.
- A real estate agent will help you find a house and guide you through the process of purchase. Agents work for commission, but a reliable agent will save you any from pitfalls you may encounter and provide assistance with several things.
- A (general House) Inspection is one of the most important steps. An inspector will check the house for any issues, defects (major and minor), and whether the home is safe or not. Problems that come up in the report can later be discussed with your agent and seller, or used to renegotiate the price. Finding a qualified Home Inspector is therefore vital. (visit home inspector in calgary to find the qualified professional you’re looking for).
It’s good to remember that the more research you do beforehand, the less of a hassle the process will be. Be prepared for any additional costs that may come up and don’t hesitate to ask questions.