Initial Steps for First Time Home Buyers

By: Joe Samson

If you get knots in your stomach at the thought of buying your first home, realize that it's normal to feel that way. Most buyers go through the butterflies-in-the-gut experience. It's thrilling and exciting to shop for homes but when the day comes to an end and you can't get a certain home out of your mind, that's when the dread drops to your feet. Here are five steps to help first time home buyers purchase their first home successfully.

Get pre-approved for a mortgage - In the beginning of our career, most of us will require financial assistance from a bank or a financial institution to help us with the purchase of our new home. The very first step you should take is to get in touch with a Mortgage Broker to find out how much you can afford and what amount of monthly payments will you be comfortable with. Keep in mind that there are many other miscellaneous expenses to consider along with a home purchase. Some of these include: legal fees, insurance, property taxes, condominium fees, inspection fees, utilities, etc.

Choose your REALTOR® carefully - The real estate agent you choose will play a major role in the home shopping process. Not only should you choose an agent that is reputable in the market, you should also make sure that you feel comfortable communicating with the agent. It is helpful to work with a REALTOR® that has experienced working with first time home buyers. Once you have selected a REALTOR®, be honest about your financial situation and carefully discuss the features your new home must possess. Most importantly, remain loyal to the REALTOR® you've chosen to work with, he will be able to save you a great deal of time and money.

Start the search - Naturally, you will want to get the most for your investment. Before you start thinking about the features of a house, you should do a preliminary search in the area that you want to live in. Selecting the location first will have the most impact on the type of home you are able to afford. Once you have a general idea of prices in the area, and then start focusing on styles, layout, lot orientation, etc. Many first time home buyers have difficulty making a decision about a home to purchase. After several days of home searching you may find yourself with several houses to choose from. You should narrow down your selection of houses as you go. As a matter of fact, it is a good idea to only have three houses in mind at any given time. Weeding out the houses will make the final decision much easier.

What to buy - A typical decision process involves weighting the pros and cons of the choices available to us. A common question that I am frequently asked is, should I buy new or resale? It's a great feeling to have a piece of mind about not having to repair things in the house. However, I truly believe that by the time you add up the cost of building the fence, deck and landscaping, you will be digging deep into your pocket. Some people might argue that new houses are cheaper than resale houses. We need to make sure that we compare apples to apples. For example, you cannot compare a 50 year old house to a brand new one, not only due to its condition but the land it's sitting on will have a different value for sure. If a house was built 50 years ago chances are good that it's located closer to the city core compare to the new construction which typically takes place in the suburbs.

Find a great lawyer - This step is equally as important as having an outstanding REALTOR®. Your real estate lawyer will make sure that everything will be seamless at the time when the property transfers from the seller to the buyer. The lawyer will make sure that you are getting what you have agreed to. He will check for any claims against the property, calculate adjustment costs, and register the new title and mortgage for you. To look after these steps is so critical that if it's not done properly if could put a dent into your financial future for the rest of your life and possibly to your children's life.

Being a first time home buyer can be a rewarding process, especially if you have the knowledge you need to make an informed decision. The next step will be to buy an investment property. There's no better way to create wealth and produce positive income. Did you know that if you have a strategy of buying a home every two years and moving into the new home that you could have a mortgage free home in less than ten years?

Thank you for your continuous support, feel free to call me anytime with your questions or real estate needs.

Posted by Calgary Realtor - Joe Samson

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