The Ultimate Guide for the First Time Home Buyer
Buying your first home can be a bit daunting and you may not be sure of where to start. Read our step-by-step guide about buying a house in Canada. Across Canada, money-savvy millennials are taking the plunge into homeownership, knowing that it’s one of the best long-term investments that they can make. Whether you’re buying a house, condo, or townhome, the process can be a bit daunting and you may not be sure of where to start. Read our step-by-step guide about how to buy your first home in Canada, so you can close with confidence.
Step 1: Before You Start House Hunting, Know What You Can Afford
Before you start the process of buy a home or house hunting, you should know what you can afford. You don’t want to fall in love with a home that is out of your price range. This will only cause you stress and, in some cases, a missed opportunity when you don’t get the house you want. To figure out what you can afford, you need to crunch some numbers. Start by looking at your current monthly debt and expenses. You’ll want to add 10% on to your total debt, which includes your mortgage payments. This is a good rule of thumb to follow. It will help you make sure your debt is under control and that you have money set aside for emergencies.
Step 2: Get Pre-Approved for a Mortgage
As a First Time Home Buyer, before you start house hunting, you’ll need to get pre-approved for a mortgage. A pre-approval means that you have been approved for a certain amount of money for the purchase of a home. You can also get pre-approved for a mortgage at the same time that you are pre-approved for a car loan or credit card. Before you get pre-approved for a mortgage, you’ll want to crunch some numbers on what you can afford. Make sure you can afford the down payment, the mortgage payments, and all the other associated costs with buying a home.
Step 3: Find the Best Realtor, Real Estate Agent in Toronto, Milton, Georgetown, Burlington & Guelph! or Anywhere in the GTA
Step 4: Find Your Dream Home and Make an Offer
Now that you’ve found the best local reator, you’ll get out there housend, and soon find the perfec house, then next step is to make an offer, you’ll need to get your financing pre-approved. This is important because the lender will need to pre-approve your financing before you get to the closing table. Since you’ve already been pre-approved for a mortgage, you can expedite the process and close on your home much faster. Make sure you get pre-approved as soon as you put an offer in on the house so that you don’t fall behind on your timeline.
Step 5: Final Words
When you’re making your final offer on the home, make sure you include a mortgage contingency clause. This clause will let the seller know that you will only make the purchase if you are approved for a mortgage and that you are able to close on the home on the specified date. When you make an offer on the home, the seller has the right to accept or reject the offer. If they reject it, you can make a new offer, but you’ll need to be prepared to negotiate. The seller may also make you a counter-offer, which is when they make a new offer to purchase the home. You’ll then have to decide if you want to accept the counter-offer or make a new offer. If you follow these simple steps, you’ll be well on your way to closing on the home of your dreams.