What First Time Home Buyers Should Know

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Real estate broker Sol Kahane has dealt with many first-time home buyers in the many years he has worked as a realtor. Some individuals are so daunted by the prospect of buying their first home that they just continue renting or buy the first home that they find in their price range. Ease your nerves as here are some crucial tips that a first time home buyer should take into account before making a purchase.

What To Consider Before Buying A Home

When buying one of the homes for sale in Springfarm Yorkhill it is crucial to think of this investment in the long term. Buying a home allows you to increase your net worth over time rather than throwing your monthly rent payment down the drain.  Whatever your reasons for wanting to buy a house, here are four questions you should ask yourself:

Which kind of home am I looking to live in?

There are many kinds of Thornhill homes for sale, from townhouses to co-operative housing, as well as single family or multi-family properties. You should choose the type best suited to your lifestyle and needs, and within your budget. You can also opt for a unit that needs remodeling work and upgrades to save on initial costs.

Which features are must haves?

When buying your first home you may need to be flexible in your requirements, but you always want to try to get what you want first. You should put together a list of the basic amenities you want your ideal home to have, such as the distance to schools and public transport, along with the less important features you desire such as the layout of the rooms or what kitchen appliances it has.

How Much Can You Afford?

Before buying your first home you will need to qualify for a mortgage. It’s always best to do that before you start house hunting, and always talk to a number of lenders and mortgage brokers no matter what anybody tells you.  For their own reasons some lenders may be more willing to lend than others at this particular time.  They will look at your credit rating, the total amount of your debt, monthly income, the amount of down payment you can make, and your job stability. You may also need to take into account potential maintenance and the costs of upgrading the home if it will be difficult to live in it without some repairs.

It’s best not to increase your debt just before applying for a mortgage.  It may hurt your chances.  After you get the mortgage lenders don’t care if you incur more debt as long as you can make your monthly payments.

Should I hire a real estate agent?

Buying a home, especially for the first time, is not an easy job. The paperwork is massive, legally binding, and different in different parts of the country.  Professional help is always needed. An experienced real estate agent will almost certainly save you thousands of dollars, and help you avoid a disastrous decision.  A good agent will safely guide you through the entire process from finding something you’ll be happy with, to making an offer, to closing the deal.  They’ll guide you every step of the way.

Tips For Purchasing Your First Home

Your real estate agent should tell you what to expect from the home hunting and purchasing process at every stage. Here is what you should expect:

1.   Home Searching

Your agent will listen carefully to everything you say, and even repeat it back to you to ensure he understands what you want, and to manage your expectations correctly.  He will have access to internet search tools that you might not, to private listings only available through other agents he knows, and probably even be aware of homes that aren’t on the market yet, but could be for the right buyers.

2.   Making an offer

If you find a property you want that is priced correctly your realtor will suggest the first offering price.  He’ll recommend conditions of sale you should include in your offer, and perhaps even suggest items you can ask the seller to do before completion.   Your agent will also tell you whether the sellers are likely to accept your offer, and possible counter offers they could come up with.  If the sellers agree to your offer you are legally bound to buy the home.

3.   Closing the deal

If the sellers come up with a counter offer you can back out of the deal for any reason as long as you have a condition of sale like “obtain satisfactory financing”.  You can always say the financing wasn’t satisfactory.  If you want to continue negotiating you can go back and forth until agreement is reached.

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