Buying your first home can be an exciting and, potentially, permanent experience. Not only will it become the center of your identity as a family but it will also become a source of comfort and family bonding. It is one of the most important financial investments you will ever make. Thus, there are 5 basic things you should be aware of:
- Don’t get carried away
Most of the times, there will be a couple of houses that we will have set out mind on because we view them to be our dream house. We overlook the price, the state of the house and the cost of repair because we want to adhere to the visual we have created in our mind. It is in this moment you have to stop yourself and re-evaluate. Think about your goals in the longer run, the status of you job, potential family expenses, the quality of the mortgage and such. Don’t make hasty decisions.
- Contact a realtor
The best thing you can do before buying your first home is to contact a realtor who you can trust.They will be able to help you through the process of buying, picking the right house, it’s inspection and fighting for a mortgage that suits you. There is a common belief that realtors drive up the price of the house but that is, in fact, false. The seller of the house is the one who will be paying commission.
- There are more factors to consider beyond the price of the house
The mortgage company will give you a rate that they believe you can afford, based on your finances. This rate is only applied to the price of the house and nothing more. There are other factors that come into play when you buy a house; taxes, insurance, repairs and such. Thus, the amount of money you spend can come out to be more than you can afford. Thus, always take everything into account before coming to a decision.
- Think about repairs
In majority of the cases, you will have to make changes and repairs to the house you have just bought. If there are basic cosmetic issues like worn of wallpaper or chipped paint, then those ca be fairly cheap to fix. However, if it requires a new makeover, including new cabinets, bathrooms, kitchens and the like, then you may want to consider whether you should invest in that particular house. Look at your finances as well as the amount of time and effort you want to put in and make an informed decision.
- Evaluate your level of commitment
When buying your first home, you should consider how long you plan on living in it. If it’s the house you want to spend the rest of your life in then its okay to spend a little more than you anticipated. Additionally, you should also consider the relationship with the person you are buying the house with. Dividing assets can become messy in the future so you may want to make an agreement that all parties find satisfactory beforehand.
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