5 Steps for First Time Home Buyers

Getting ready to purchase your first home is an exciting time, albeit intimidating and even overwhelming. These top five tips for first time home buyers will help make your real estate journey an enjoyable one. 

Make a Pre-Approval Your First Fist Priority 

Exploring your financial options will provide you with the clarity needed to start shopping. You can reach out to your bank, a mortgage broker or even a private lending institution for quotes on interest rates and borrowing capacity. This process often requires providing tax information, pay slips and employment history to determine your eligibility for a mortgage. Start early and give yourself lots of time to complete this process so that you can begin your home search feeling confident in your financing. 

Plan your Monthly Projected Expenses

Once you have an established pre-approval, you can begin budgeting for your projected monthly expenses. Each home will vary in the day to day living costs, so knowing how much you can afford on a monthly basis is essential for being successful in your new home. The type of heating, the cost of property taxes and the energy efficiency are just a few of the factors that can influence your monthly costs. Check out this online affordability calculator to crunch the numbers on homes you are interested in or download a copy of our monthly expense estimator to start crunching the numbers.

Understand the Process  

Have a conversation with your real estate agent about what to expect when the offering process begins. Real estate deals often happen quickly when the ball starts rolling, so you want to be prepared for what lies ahead. You will want to discuss your options for conditions, the level of risk you feel comfortable with and your expectations for a timeline. 

It’s also important to be learning about the housing market where you are hoping to live. Each location will have it’s own buyers or sellers market with unique traits. In some areas, you have more time to construct your offer, whereas other markets may be moving quickly. The ability to leverage conditions will also vary depending on how competitive the market is in your ideal location. 

Lay out your Priorities 

Take time to reflect on your “home buyer’s wish list”. What aspects of a new home are most important to you? A few examples of key considerations include the location, the number of bedrooms, the monthly payments, the proximity to schools and community amenities, the size of the backyard, a finished basement, a garage or the potential for additions and renovations. The more information you can provide to your realtor about your expectations and priorities, the more effectively they can narrow down your search. Further classify your list into the negotiable and non-negotiable elements to help weed out the properties that won’t work. 

Be Prepared to Make an Offer

If you have followed the tips above, you will be ready to execute when the right home comes along. Being timely and efficient in the offering process can be the difference between getting possession of your dream home or getting passed over. Clear and timely communication before and during the offer process will prevent any unnecessary delays in negotiations. You can expect that there will be a number of documents to sign, which means you want to be ready to provide your signatures either electronically or in-person on relatively short notice. The good news is that your new home isn’t far away by the time we reach this point!

If you are interested in learning more about purchasing your first home or if you are ready to get started, reach out to learn more.