As first Time Home Buyers, your first home is an exciting, if not nerve racking experience. You will find yourself juggling many balls in the air, and it’s not as simple as they portray it on tv real estate shows. There are many moving parts happening at this point. You are excited, yet inexperienced. You have an idea of what you want, but you’re not entirely sure if you can afford it, and so on. Furthermore, you then decide that you need to further educate yourself, and look for some tips for first time home buyers, which leads you here, to this blog.
Advice For First Time Home Buyers
Do A Deep Dive Into Your Financials
As we all know, housing prices are going crazy right now, and nobody really knows if or when it is going to end. This means that there might be a home that you can afford today, but next week it is out of your price range. It’s that intense right now.
You will need to truly understand your financial situation by doing a complete breakdown of what you have available to you, and how much you spend every month. For example, do you have 3-6 months of emergency funds available in case you lose your job, or there is a medial emergency? How much are you spending per month on things like car loans, bills, other loans, personal spending and so on. How much have you saved for a down payment? How much you can reasonably put towards a mortgage each month including the associated costs with owning a home such as utility bills, property taxes, and insurance?
You will need to factor all of these things in before you can seriously begin looking for a new home.
Search For A Mortgage
Unless you are sitting on an inheritance or trust fund, you will probably need a mortgage, like the ones we at AG Mortgages provide.
Our team of dedicated mortgage professionals will take a look at your current financial standings, and work one-on-one with you and secure you a mortgage that you can afford on your budget, and get you one step further to being a first time homeowner.
When you have secured a mortgage, you are now able to have a complete understanding of how far your dollar will go, and what type of home you can afford. You will have a solid plan moving forward, less stress, and can concentrate on the excitement of searching for your new home.
Where do you see yourself in the future? Look 5-10 years down the road and ask yourself if you plan on staying in your new home for that long. You may be considering having children, and don’t want to move them from their schools and friends, so your new home will be a place where you put down long-term roots. Conversely, this may be the first of many steps on your home buying journey, so you may be inclined to look for a home in an up-and-coming neighbourhood, where your home will increase in value quickly, allowing you to flip it for a good profit.
It goes without saying, there are many more moving parts in the process, but these are the three most important details you should address when it is time to begin seriously looking for your new home.