Are you looking to buy a house? Here are 10 tips for first time home buyers
10 Tips for First time home buyers
Buying a house for the first time can be an intimidating yet exhilarating experience. Decision making is a daunting process and since it is a high involvement purchase, 1 out of 3 first time home buyers always face some level of dissatisfaction or regret after making the purchase. Thus having a strategic approach towards home buying is the best way to protect your interests.
Here are 10 tips for first time home buyers that can help you choose the right property –
- Start by setting a budget: As a first time home buyer, it is important to define the amount that you are willing to and capable of spending on a house. Many first time home buyers get attracted to properties which are exceptionally well located, beautifully designed and come with a host of amenities. But after purchasing such a property, they often find themselves house poor. To avoid such a situation, set a budget within which you can buy your first home, decorate it, maintain it and still manage your current lifestyle.
- Identify your non-negotiables and trade-offs: While for some buyers location of the property could be of paramount importance, others may be unwilling to compromise on the number of rooms and baths. Depending upon your preferences and lifestyle, define your non-negotiable home selection criteria very clearly as well as things you are willing to trade-off. This would save you a lot of time and energy at the time of search.
- Research online and offline: It may be the most tedious step in the process, but certainly an indispensable one. As a first time home buyer, you must research your preferred neighbourhood, home options available for purchase and their price range; before actually beginning the search.
- Find a realtor you can work with: Getting a buyers representative or realtor who understands your needs, can make the entire house hunting experience very smooth for you. Find a realtor with whom you can share your budget constraints and specific requirements without any inhibitions.
- Save up for the down-payment: As a first time home buyer, it may take you several months to finalize a place to purchase. During this time, refraining from making any high ticket purchases and saving up for the down payment is important to reduce your mortgage liability.
- Check and improve your credit score: To avoid getting a back-breaking mortgage interest rate, you must check and improve your credit score. All lenders rely on this information to offer you a low risk interest rate.
- Identify low cost credit options: If you are buying your first home on credit, then you need to find low cost credit options and schemes like subvention to reduce your liability.
- Shortlist and assess: Finally, once you have entered the open market and have started looking at options, start preparing a shortlist and conduct a pros & cons analysis of the properties before settling on one.
- Conduct a thorough home inspection: Many first time home buyers hesitate in doing this, but conducting a thorough inspection of property and even asking for certain things to be fixed by the owner before purchasing can save you a lot of grief in the long run.
- Read transaction documents carefully: It’s the final step and it requires as much vigilance as the rest of the process. Read all purchase and loan documents carefully to ensure that you know what you are getting into.
At Toronto Condo Only, we are passionate about new land developments and since 2007, we have helped clients get the best deals and the properties. Clients trust our industry knowledge of the real estate investment market throughout Greater Toronto, which is the foundation of our success to buy low and sell high. With our broad vision and innate ability to understand real estate properties, including pre-construction low-rise and high-rise condos, resale homes and commercial properties, we have achieved continued success for our clients and ourselves.
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