Looking to buy your first home?
One of the most exciting moments in someone’s life is purchasing their first property! There are several things you should keep in mind when you’re first considering ownership which will make it easier to buy your first home and make it a valuable investment for the future.
Savings
The first thing to keep in mind is your savings. You will need to save up for your deposit and down payment if you want to purchase a property.
Ways to build your savings include cutting down on expenses, setting aside portions of each paycheck, selling unwanted items, being cautious of not overspending on things you don’t need, and even depositing any gifted money from your birthday or Christmas.
It’s essential to have enough funds set aside for a down payment, covering the cost of the mortgage, the general upkeep and maintenance of the property you wish to own, and enough to keep going in case something unexpected happens.
Mortgage
Most buyers will need to get funding in order to qualify for a mortgage. You will need to talk to a mortgage lender or a mortgage broker. Start by setting up an appointment at the bank you wish you deal with. It doesn’t hurt to ‘shop and compare’ the different interest rates. Be sure to read the fine print, as these are legal agreements and, as such, have consequences if the terms are not fulfilled.
Pre-Approval
By speaking with a mortgage lender, they will help you understand the value of a property you will be pre-approved to purchase. Depending on factors including your income, savings, co-signers, and credit score, you’ll be able to get a different level of pre-approval. It’s always a good idea to understand what you qualify for before you start looking at houses, or you may end up writing an offer for a home you can’t afford and will be unable to go through with your purchase.
Offer to Purchase
An Offer to Purchase is a legal agreement between yourself and the current owner of the home. This document will form the legal framework around the transaction. The final offer, signed by both parties, will agree on details such as purchase price, possession date, the terms and conditions of the offer, etc. The Offer to Purchase and its supporting documents are essential to set out the expectations and responsibilities of each party.
Homeownership is truly an exciting and rewarding experience. Feel free to reach out to any Real Estate Professional or Mortgage Lender with any questions you might have, and they will be happy to guide you through the process. I am looking forward to seeing you at my next open house!
