Buying a home, especially for the first time, is a daunting challenge. So in order to help you make the most out of the purchase, we will figure out what you must consider before buying a house, what you can expect from the purchase and also provide you important tips to make things easier for the post-purchase phase.
Important Considerations Before You Buy
Be clear about your long-term goals and how buying this house would help you to achieve them. It would put you in the right direction. So ask yourself these questions to get clarity.
- What type of home would best suit your needs?
When buying a residential property, you can choose from either a traditional single-family house, or a townhouse, or a condo, or a multi-family building with two to four units. Be clear about why you want to buy a house and then depending on that reason choose a house type. Different types of home have their own purchase price. You may also save some money by choosing one of the other.
- What amount of mortgage loan can you get sanctioned?
Before buying a house you need to be be sure about the amount of money you can get from your mortgage. You may get lesser of money than what you asked for. So have a good credit record. Mortgage providers would check if you have any debts, your monthly income and how long have you been working for a company.
- What exact features do you want in your ideal home?
Your own home would be the biggest purchase you have ever made till now. So, think of some specific features that you would like to have in your house. However, keep the list flexible.
- What is your budget for your new house?
Sometimes bank will give you loan for more house than you actually want to pay for. However, it is important to consider the monthly payment, the down payment you can afford, insurance cost, property tax prevailing in your neighborhood, maintenance cost for the house and closing costs.
- Who would you approach for help in finding you the house and guide you through the buying process?
Are you going to buy a property, it’s always wise to take help form an expert. A real estate agent is one who would help you to locate, find the right house to buy according to your needs and requirements, budget and then join you to see those houses. After you zero down on a particular house, the agent would help you to make an offer, getting a loan sanctioned and even through the required paperwork. A real estate agent ensures you can buy your house without any difficulty and help you to avoid any pitfalls.
The Buying Process
After you have decided to buy and chose a property you would see more offers and counter-offers coming your way and it creates a commotion. However, if you are ready for the paper-work then you can effectively avoid the hassle. Let’s take a look at the stage-wise progress of the buying procedure.
- Choose a house: This would involve quite some research work. Ask your real estate agent; look around your neighborhood for house-on-sale signs. You can also ask your friends, family members, office colleagues for referring a good house.
- Look for secure financing: First time home buyers can avail federally-backed loans, home buyers who don’t have the standard 20 per cent minimum down payment are also entitled for home loans. Besides, different states have their own program for first-time home buyers which ensure you secure financing.
- Offer: Take advice from your real estate agent for offering a buying amount along with any conditions that you would like to ask for. The seller would then either agree or propose a counter offer until you reach an agreement. After agreeing, you need to pay the seller a ‘good-faith deposit ‘after which the process the escrows. It is a brief period when the seller would take the house of the market with an understanding that you will buy the property, unless you find any serious issue while inspecting.
- Opt for home inspection: Even if the house seems to be in a good condition then also get a trained professional to inspect the quality of the house, safety and its overall condition. If there is any defect, not disclosed by the seller, you can decline the offer and get back your deposited amount, or ask the seller to repair, or offer a discount on the selling price.
- Close or move on: If you find something undesirable during inspection then move to another option. If you are satisfied with the deal then, then close it by completing all the legal formalities for purchases. This includes getting the house appraised, confirm none but the seller has ownership of the property, and get private mortgage insurance, or piggy bank loan, if you have a down payment less than 20 per cent. Finally, you will have to complete the mortgage paperwork.
What Lies Beyond This?
Mere signing of papers is not the end f the process but a recess only. You will need to incur quite a lot of expenses in the post-purchase phase. So let’s look at some tips to make things easier for you for buying a house and ensuring smooth transition and satisfying utilization of the property.
- Buying your home is not an end to expenses but something that increase your expenses. So start saving in an emergency fund.
- Houses too depreciate with time. Invest in taking care of your house to avoid sudden repair costs.
This detailed information can easily turn you into an expert with profound understanding in the real estate market. The satisfaction of living in a house you bought is unmatched and a common dream that almost all people strive to achieve in their life. So with own your own home!
So if you are a first time home buyers and looking for Top Mortgage Agents in Ontario then contact Tanmay Kelkar for a useful assistance.