Do’s and Don’ts of Buying Your First Home

When you plan to purchase a house, it involves a lot of running around to get the best of everything. There are many things you need to look for before a deal can be struck. The house you have your eye on needs to be financially within budget and as well as satisfy a range of requirements.

If you happen to be a first-time buyer, then one of the first things you would have to do is get a pre-approval from the lender. The lower the mortgage rate, the more the buyers waiting to purchase. In Canada, a real estate agent will guide you only if you have a pre-approval for a mortgage. This also raises your confidence that funds can be received immediately if a deal is struck.

Good credit scores help in getting easy pre-approval. So, keep your credit rating high, otherwise, you will not be able to get the pre-approval from a financial institution. Keep your down payment money of about 20% ready. If no down-payment is given, then you might have to pay more for getting CMHC’s mortgage default insurance.

The calculation of how much you must pay will depend on the mortgage amount and the down payment. The higher the down-payment, the lower the loan amount required. To increase your down-payment, you can borrow from RRSP. This will reduce your loan amount. First-time buyers can get some tax-free benefits.

DO’s

• Look for an estate agent: Get hold of a good agent on whom you can rely upon. Leave it to them for getting you a good house within your budget. The agent will help you with everything from inspection to getting credit and looking after the insurance.
• Check your budget: Get control over your budget and savings. Otherwise, things will get out of hand later. Always investigate your future capabilities before taking the decision of buying a house.
• Be frank: Always go with an open mind to see the house. Be realistic in your approach and ensure that you only visit the houses that fall within the range of your budget.

DON’Ts

• This may not be your first or the last home. So, don’t be too calculative for you are going to move some years later or at least let it out as an investment.
• Don’t be emotional: Don’t allow your head to be ruled by emotion. Think of the pros and cons and the resale value. If the location is nice, naturally, the resale value will be high. This should be one of your major concerns.
• Never go for big expenditure without getting a pre-approved mortgage. Your loan will depend on your income, savings, and credit ratings. So, it makes sense to save as much you can to avoid issues later.
• Closing costs: Always be careful about closing costs as it increases your loan amount significantly. The CMHC advises you to keep 1.5% to 4% of the cost as a backup. Apart from this, it is better if you can make provisions for emergencies as well. For instance, some repair work might need your immediate attention.

Whether you’re looking to buy or sell in the Kamloops area, for a greater probability of success you need a dedicated professional. I can guide you through the process and be counted on to protect your investment!

Categorised in: Buyers, Kamloops, Real Estate

This post was written by kamloopshomesearchcom