First-time homebuyers should follow these strategies to ensure a smooth ride to their new home.
1. Are you financially stable? Have you been working in the same industry for at least one year? Or have you been self-employed for more than two years? That’s what lenders look at. They also consider the amount of your down payment.
2. Meet with a mortgage professional to get pre-approved.
3. When you know what you can afford, figure out where you want to live. Is being on the subway line important? How about near restaurants, nightclubs, a gym, parks, cultural amenities and friends and family?
4. Learn the lingo of the housing industry. Bone up on mortgage and real estate terminology. Know what a blended payment is, as well as a fixed mortgage versus variable. Learn the characteristics of a stacked townhouse, a semi-detached house and a duplex.
5. Find a reputable realtor. Ask a friend or relative for a referral or contact an agent who specializes in the neighbourhood you want to live in.
6. Research the area you’re considering. Look for schools, shops and specific features nearby that appeal to you.
7. Figure out what type of property you want. An older house with ongoing maintenance-and-upkeep issues or a nomaintenance turnkey condo?
8. Be prepared—and don’t be too slow to bite the bullet. In a hot market, you might run into multiple offers on a property. How will you handle that? Remember that the house may no longer be available if you wait a few days to consider your options.
9. Don’t get caught up in a bidding war. Know the maximum amount you’re willing to pay and stick to it. If you miss out on one house, there will be others.
10. Speak to a lawyer to find out about closing costs and property taxes. Understanding the process and its associated fees will make you a more informed buyer.
