Well what an exciting time this is! You have decided it’s time to buy your first home. Recently, my 25 year old daughter asked me the question: how will I know when I’m ready to buy a home? It dawned on me that buying a home, is a lot like having a baby! Unless you go through it yourself, you really don’t know what to do. I decided to write a blog on common questions and then give simple tips for first time home buyers.
You are in the everything era. You can learn almost anything on the net and buying a home is no exception. Buying your first home can be completely overwhelming if you are unprepared. BUT if you are prepared, it will be an awesome journey. Here are some hard hitting questions and tips for first time home buyers that will help to see if you are ready to buy your first home.
Questions: Are my finances in order? Tip – Do a credit check on yourself. If your score isn’t great now is the time to clean it up. Consider consolidating debt, and limit the number of credit cards you have. Remember to pay bills on or before they are due.
Do I have enough for a down payment? 5% is really the minimum. You need 20% to avoid having to buy mortgage insurance. Tip– use the know your numbers affordability calculator.
Can I realistically afford to make the payments? Tip -Please take into account all your other current expenses such as car payments, insurance, gym and streaming memberships. It is amazing to see how quickly bills add up!
Am I ready to settle down and buy my first house? Tip – make a pro and con list for your current situation. Ask your parents, about the true cost of home ownership. Trust me, they will give you the goods!
What other daily, weekly, monthly and yearly maintenance is required for home ownership? Tip-If you buy new you will need to consider paving the driveway or adding landscaping. If its a resale home you will need to budget for that roof or appliance replacement etc.
What incentives do I qualify for? Good news you qualify for a variety of incentives for fist time buyers. Tip- Canada Mortgage and housing offers incredible resources for those first time buyers in one spot that will help you understand. Click here for step by step guide.
I hope these tips for first time home buyers have been helpful. Once you are ready to buy you will need a great real estate agent so see my blog on questions to ask your potential real estate agent.