Buying a home, particularly your first home, is exciting and a significant undertaking. Given the amount of money involved, it’s essential to take this decision very seriously. Not sure if you’re ready to purchase your first house? Here are some criteria you can use to assess your readiness, along with some tips on buying your first home if you choose to do so.
Do you have any Major Expenses Coming Up?
Any major upcoming expenses you have could affect your ability to save for a down payment or make your monthly mortgage payments. These expenses include paying for a wedding, going on a big vacation, or having a baby. So if you have an event like this coming up, you may want to hold off on buying a home until your spending is more stable.
What’s your Income and Employment Status?
As you can probably guess, it’s not wise to move when you’re unemployed or in the middle of changing career paths. Monthly mortgage payments are no joke, and you’ll need secure employment to make these payments.
Your income level is also relevant to a degree. People of most income can afford a home of some sort, though the homes within your budget may not have all your wants and needs. If you suspect that your income may not be sufficient to purchase your ideal home, you may need to take more time to save, pursue a promotion, or consider a career change.
How much Debt do you have?
You can purchase your first home while having debt. However, the amount of debt you have could affect your ability to acquire a mortgage loan with a decent interest rate.
If you have significant amounts of credit card or student loan debt, it may be wise to focus on paying down these debts for a few months. These efforts can improve your credit score significantly, which will help you acquire a good mortgage loan.
Tips for Purchasing your First Home
If you’ve decided that now is the right time to start looking for your first home, here are some tips.
- Be Wary of Fixer-Uppers: Found a cheap home that’s within your budget but has some significant problems? As tempting as it may be to jump on the opportunity, be wary. Putting your money into a property that requires substantial repairs that you may not have the time, funds, or skills to manage may not be ideal for your first home.
- Take Your Time: Having a good job, little to no debt, and a clear idea about what you want is excellent. However, that doesn’t mean you should be purchasing a home now. Taking things slow will give you more time to view potential properties, all while saving up more for your down payment.
- Budget Carefully: There are many costs and fees that come with moving. It would be best if you were financially prepared for closing fees, future mortgage payments, and the utility costs that come with your new home.
- Hire the right REALTOR®: If you want the best possible deal on your first home, it’s essential to hire the right REALTOR® that knows the Grey Bruce and Simcoe communities. They’ll use their market knowledge and negotiating skills to get you a great deal on your dream home.
Ready to Purchase your First House? Contact a REALTOR® that knows the area.
If you know how to buy a home, practically speaking, you may try to go it alone. Taking a DIY approach to purchasing a home may save you from paying a REALTOR®, but it could cost you more in the long run if you do know the local communities and the real estate markets for each one.
The experience a REALTOR® brings is precious. They’ll be there to advocate for you every step of the way, taking on tons of paperwork and tasks that you may not have the time or desire to manage. They’ll guide you through the process and find you a home that suits your wants, needs, and financial budget.
Hello I am Christine Smith a Real Estate Agent based out of Collingwood Ontario. I service areas such as the Blue Mountains, Collingwood, Thornbury, Meaford and Wasaga Beach as well as every wonderful community across the Southern Georgian Bay area.
If you are looking to buy or sell and not working with an agent, let me be your Lifestyle Specialist to real estate and homes for sale across Collingwood.
As a professional REALTOR® with over 15 years of experience, I enjoy making the process of buying and selling real estate a simple process. By the end of the sale my clients end up becoming my friends.
This article was published on August 14th 2021 by Christine Smith - Collingwood Real Estate.