Essential Tips for First-time Home Buyers
Buying your first home is a big deal. You’ve saved your down payment and you’re ready to make your homeownership dreams a reality. You’re taking an exciting step ― and an important one. From securing financing to settling on must-have features, you have a lot to think about. But, don’t fret! Our tips for first-time home buyers will lead you straight to success.
Set Your Budget
To figure out how much you can afford to spend on your home, start with your down payment. In Canada, you need to put down at least five per cent of your home’s purchase price (for homes $500,000 and under). So, if you’ve saved $20,000, your maximum budget is $400,000.
And the number-crunching doesn’t end there. It’s equally important to calculate what your expenses will be, such as your mortgage payment, insurance payments, property taxes, utilities and even moving costs.
Secure Your Mortgage
Visit your bank or credit union to gain pre-approval on a mortgage before you start searching for your new home. Knowing exactly how much of a mortgage you qualify for from the start will help you avoid any surprises. With your financing in place, you can make realistic decisions about your budget and the kind of home you’re looking for.
Size-Up Some Neighbourhoods
Once your budget is set, it’s time to start exploring neighbourhoods with homes in your price range. Narrow down your search by considering some key questions:
- Does the neighbourhood fit your lifestyle (and your future goals)?
- What are its amenities? Does it have parks, playgrounds or bike trails?
- Is it convenient? Is there shopping nearby? Is there easy access from a major roadway?
- What about local schools or daycare options?
Start a List
When it comes to selecting the features you want in your new home, start by making a list. Your new home not only needs to fit your lifestyle now, but also needs to align with your future goals and plans.
Include all the features of your ideal home on your list. Then, set your priorities. Separate your must-have features from your nice-to-have features. Decide what compromises you are willing to make when choosing your new home and be realistic about your deal breakers.
Keep your list with you when you are viewing show homes or considering floor plans to help you stay on track.
With these four essential tips, you will be able to start your journey to homeownership on the right foot with a clear understanding of the investment and your goals.
Specializing in modern, affordable luxury, Averton has many options perfect for first-time home buyers. For more information about our layouts or design options, contact one of our sales associates today.