Being a first-time homebuyer can be the most joyful experience or the most stressful, depending on how you manage the process. For most, it’s somewhere in the middle. Here are some tips to get you started and to make the situation less stressful to navigate.
Get The Mortgage Pre-Approval
Meet with your bank or financial institution, mortgage specialist or other lender to get pre-qualified for a mortgage. The lender will review your finances, down payment amount, income levels and make a determination based on all of these, and other factors for how much of a mortgage you can secure. This is important when starting your search for a home as it keeps you on-track budget wise.
Have A Clear Wishlist
Once you know how much money you have available, it’s time to figure out what you want in a home. The number of bedrooms and bathrooms, open plan or not, rancher or two storey, basement or crawl space, and the size of yard you want are all great starting points. But keep an open mind because you may see features in a home that you haven’t previously considered.
Hire A Professional Real Estate Agent
Working with an experienced real estate agent will pave the way to a smooth transaction. A real estate professional will source homes within your budget range. They can provide expertise on locations and the types of homes that may be within your budget. They can recommend an appropriate price for a particular home, and point out any areas of obvious
concern within the home.
Once you find the home you want to buy, they will prepare the Offer to Purchase and negotiate on your behalf with the sellers’ agent. Keep in mind that buyers don’t generally pay any fees or commissions as these costs are borne by the seller. So it only makes sense to use someone qualified and experienced to help you through the process.
Be Willing To Compromise
Once you’ve found the home and your agent has submitted the Offer, you may need to be prepared that the seller might not accept your offer. Knowing your bottom line beforehand is beneficial during negotiations as it helps you to know when it’s time to walk away. Can you compromise on repairs that may be needed? Are you willing to take on some of the work that may be needed to secure the home? What about the price? Is there any wiggle room on your offer and are you willing to meet the seller halfway?
Get A Home Inspection
Being a first-time homebuyer, you’ll want to make sure you obtain a professional home inspection. The cost is usually a few hundred dollars and is well worth the expense. The professional home inspector will review the home, top to bottom to determine if there are any defects or issues visible within the home that you may not notice. This includes the electrical and plumbing components, structural condition, roof, appliances, flooring, and everything in between. If any major problems are discovered, you can use this to either re-negotiate with the seller, or decide not to pursue the home after all. The last thing you want
in your first home is to find out after you’ve bought it that it’s a money pit.
Review Strata Documents If Applicable
If you’re contemplating the purchase of a Strata Unit, you must review a number of items
before committing to the purchase. These are:
- Two years of minutes
- Financial statements and budgets
- Bylaws
- Rules and regulations
- Depreciation report
- Special assessments or levies
If any of these documents reveal items of concern, make sure you question it before moving forward. If you don’t like the rules and bylaws or there’s something that isn’t in line with your lifestyle, carefully consider whether or not to proceed. If, for instance, you love to barbecue, but barbecues are prohibited, is that something you can live with. Likewise, items such as pet restrictions, age restrictions, or other limitations that may hinder your enjoyment of the unit, should be given careful consideration before you make your final decision.
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