Buying your first home is one of the first large investments you make in your life. It is important to make sure that you are set up to succeed.
Here are 5 Key Steps that will guarantee your success.
1. Start looking for a home early.
Even when you're just dreaming about your perfect home; It's important to figure out what features are the most meaningful for you. You want to find a home that meets as many of your requirements as possible. By doing this, It will also help you start to figure out if your desired amenities are considered a luxury or a later upgrade. These home features can attribute to an increase in the cost of the home.
2. Narrow down the area you want to live in.
You want to make sure that the areas you are looking at buying your first home are going to fit your lifestyle for years to come. So you want to take into account things like what's the commute like to your work? Where is the grocery store? If you have a family or are planning to have a family, what are the schools like? Are there parks or green areas if you have a dog? The area your new home is in is almost as important as the home it's self. The area partially dictates the type of life that you get to live.
Another thing to take into consideration is that the price of homes fluctuates from area to area. By nailing down the area, you are going to be buying your first home in you can get an idea for how much a home is going to cost you.
3. Take Care of Your Credit Score!
Your credit score is one of the most important things to keep in mind when you are buying your first home. It is what determines your eligibility for receiving a mortgage. It also affects the amount of the mortgage and the interest rate. According to ratehub.ca "A credit score above 700 proves you manage your credit well, meaning a lender should feel comfortable letting you borrow money. A lower credit score shows that you have mismanaged your credit, making you more of a risk to the lender, which means you may be required to pay a higher mortgage rate."
When you are buying your first home, don't make any large purchases that will increase your debt load. Like buying a car, or maxing out a credit card.
4. Find a Mortage Broker.
A mortgage broker is someone who will look at your credit score. They take into account other factors like your employment and figure out how qualified you are. Then they will take this information and look at all of the mortgages offered in your area. This way they can find the best rate for you. When you are buying your first home, having someone who can help guide your financial decisions is indispensable.
When you are first talking to a mortgage broker, one of the most important things you can do is establish a budget within the amount you have been qualified for. It may be exciting to qualify for a $500,000 mortgage, but what do those monthly payments look like in the long run? If you get laid off or have to take a lower-paying job how much of a hurdle would those monthly payments be? Buying a house is a long term commitment, so you have to think outside of the excitement of right now.
5. Find Your Perfect Realtor.
An ideal realtor is someone who knows the area that you are looking for homes in well. They may have lived there themselves, or specialize in that part of the city. By choosing someone who specializes in the area you are interested in, you are choosing someone who knows the real value of homes in that area.
A good realtor will have your best interest in mind. They will be able to guide you through the complicated process of buying your first home. As well as communicate with you in a way that you feel the most comfortable with to make this process as painless as possible.