Nothing is more exciting than deciding to buy your first home. What we sometimes forget is the other information that we wish we knew before we purchased our first home. Our Anne Winch Real Estate Team has put together some very valuable dos and don’ts for first-time homebuyers to think about before you decide to purchase your first place.
DO:
- Use a trusted real estate company
The best advice for buyers or sellers is always to get a credible real estate company. A lot of first-time buyers believe they have to pay a commission to a real estate company. The sellers pay the real estate commission, not the buyers. Our Anne Winch Real Estate Team can help you with any questions you may have on purchasing a home for the first time. Our name speaks for itself as we have had many years of experience in the real estate business, we know our market and can help you find the best place for you and your family.
- Have a budget and get pre-approval
When you first start out, you need to have a budget and stick to it. As this is your first home, you don’t have equity from a previous home to rely on so you need to be careful. Get pre-approval from your bank to find out how much home you can afford. Always keep a bit in reserve for closing costs including legal fees and build in a bit of extra money as a cushion.
- Take advantage of tax credits
Often first-time home buyers are not aware of tax credits they may be able to use. Check into your RRSP withdrawal for first-time home purchasers. You may also be eligible for a GST rebate, home business tax breaks etc.
- Get a mortgage broker
Don’t feel you have to settle with one lender. A mortgage broker will work with you to get the best lender for your circumstances.
DON’T:
- Apply for new credit
You may think this is ok to add more credit when you are buying a home but it can cause some havoc if your credit score takes a hit. This can cause problems including adjusting the interest rate higher on your mortgage.
- Pay off all your debt
Paying off all your debt may seem like a good thing to do when you are getting a mortgage. This in fact can deplete some of your cash reserves. You are pre-approved on certain assets and if this changes you could be denied your mortgage.
- Let your credit score take a hit
Maybe you were scrambling around for your down payment and let a couple of bills lapse or you maxed out your credit card. Either way, your approval was on a certain credit score and if that is now lower, it can be a concern for your lender and for your approval.
- Co-sign a loan
When you are trying to get approval from a lender you should not co-sign a loan. This is also considered a debt for you even if you are not making the payments.
We hope this information will help qualm some of your worries when buying your first home. Our Anne Winch Real Estate Team can help you through the home buying process and we are here to help negotiate the purchase of your new home with the least amount of stress for you. Give us a call for any of your real estate needs.