Ready To Buy Your First Home? Consider These Things First
Wednesday Jul 25th, 2018Share
The real estate market has faced rapid change in the last few decades, making it a much different market for first time home buyers. However, many young people are still actively considering whether or not now is a good time to buy their first home. It can seem overwhelming to begin your home search, but a good real estate agent can help you find listings that suit your budget and help you focus on finding a property that will work for you. Sue Heddle Homes works closely with first time home buyers across the GTA, helping them feel comfortable, empowered and informed. Our Buyer’s Guide will give you more details on what to expect during the home search and purchasing process.
Our best tip for first time home buyers is to make sure you’re prepared before you start your search. Not only will this help you get going on the right foot, but can also make the entire process much smoother and less stressful.
Five Things First Time Home Buyers Should Think About Before Buying A Home
1. Do I have a steady income?
Making a regular monthly mortgage payment is not possible without a regular income. Truthfully, getting a mortgage wouldn’t be possible either. So, if you don’t yet have much of a job history or current steady employment, it’s likely not the right time to buy a home. While you’re working to build up your job history, take this time to also build up a strong financial picture. Save for a down payment and put money away for legal fees, so that you’re fully prepared to apply for a mortgage when the time is right.
2. What’s my credit score?
Your credit score is another big part of your financial picture when it comes to buying a home. If you have any history of high, unpaid balances on any credit cards, or overdue bills, this can make it harder when it comes to buying a home. Get familiar with your credit score if you think you’re ready to buy. Equifax is a great resource for learning more about what makes a good credit score and how to find out where your credit score lies.
3. Do I have enough money saved?
In recent years, mortgages rules have changed. Buyers are required to have a more substantial down payment and are subject to a more stringent financial stress test. In addition, the down payment is not the only money that you’ll need during the home-buying process. There also are inspections, appraisals and titles, just to name a few of the fees associated with the closing process.
4. Am I ready to be settled in one location?
Many young people are just at the beginning of their careers. So, it’s important to think about whether or not you feel ready to buy a home in Oakville or the Greater Toronto Area and stay in that one location for a long period of time. You don’t have to stay in a home forever, but it may not be a wise decision to buy a home that you’ll need to sell in a year or two. If you aren’t sure where you want to be yet, home ownership may not be right for you just yet.
5. What kind of home do I want?
If you’ve got your financial situation in order and a location mapped out, it’s time to ask yourself what style of home you’re after. In the short term, it may seem like a high-rise condo in the city is the ideal option for a millennial buyer, but you may want to think a bit further out. Do you see yourself with a spouse or family in a few years? If the not-so-far-away future has you thinking about a single-family home in the suburbs, it might be worth finding a bigger space that can better suit your long term plans.
Find Your First Home With Sue Heddle Homes
If you’re a first time home buyer that’s considered all these questions and are ready to start your home search, contact Sue Heddle Homes. With more than 10 years of experience helping clients buy their ideal home, Sue Heddle will help you through the process with dedication and top quality customer service. We’ll make sure your first real estate experience is a positive one!