Buying your first home is one of the most exciting times in your life and may be your most expensive purchase also. This is why our Anne Winch Real Estate Team would like to help you with everything you need to be ready to buy your home. Here are some questions you should be asking:
What is your budget?
The first rule of thumb is to crunch some numbers. What can you afford? This may seem like a logical first point of attack but often we fall in love with a picturesque older home and forget the numbers game involved. Remember you always have to keep in mind the resale value of the home even if you don’t plan to sell right away. Get some advice from your real estate broker about the purchase of a fixer upper especially if you need financing.
What is the difference — pre-qualified vs pre-approval?
If you are a first-time home buyer many real estate terms can get confusing. You think if you get pre-qualified that all is done for getting a mortgage. Not really, there is a big difference between pre-approval and pre-qualified and final approval when it comes to your lender. As a future home owner, you should make sure that you are familiar and comfortable with these terms before you step further. Check with your mortgage broker for further information on how to get these approvals.
Why are they selling their home?
Check with your real estate team to find out why the sellers are moving. It could be they have outgrown their home or they are downsizing. This information can be important when buying as you will know the motivation of the seller and you may be able to be more appealing when you present an offer.
What’s included when I buy?
You should not assume all appliances are included or the lovely chandelier in the foyer is yours too! Check with your real estate team and they can discuss with you what is included in the sale of the home. Some sellers opt out certain items when they are selling.
What is the home buying costs?
- Closing costs can be between 1.5 to 4% of the home’s purchase price
- Legal costs can be anywhere between $400-$2500 (depending on your lawyer/notary rates)
- Land transfer (percentage of the cost of the home)
What are some tax breaks/credits for first-time buyers?
To help offset some costs as a first-time buyer, there are some tax breaks or credits that you may not be aware of. Here are some that we know can help:
- Land transfer tax – some or all of the tax may be covered
- RRSP withdrawal up to $35,000 for first time home buyers as a tax credit
- GST new build rebate
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 Ottawa Real Estate and Home Staging 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 and we know our market and can help you find the best place for you and your family.