Being a first-time home buyer in today’s current market can feel intimidating, however, there are a few things you can do to make the process more exciting (as it should be) and less stressful;
• Knock off as much of your current debt as possible with mid-high interest rates so you can save for your down payment and have more flexibility in your budget.
• Ensure that you can afford monthly payments of your mortgage and/ or maintenance fees, contact a mortgage broker to find you the best rates. It also helps to have an emergency fund in case times get tough.
• Aim for a down payment 20-30%, this ensures you have enough equity in the home where you don’t end up owing more than it’s worth, this will also likely eliminate the need for paying mortgage insurance.
• Don't forget that a deposit is required upon acceptance of the offer which is typically 5% of the total purchase price for the property you plan on buying. You whill have to have this deposit ready to hand over to the listing brokerage upon acceptance of your offer. If there is no deposit then there is no deal.
• Save enough for closing costs (land transfer, lawyers, etc.) and moving expenses.
• Find yourself a trusted real estate agent who represents you and your best interests in finding a home that fits as many of your needs as possible. As a first time homebuyer you may not know that the seller pays both the listing (seller’s) and cooperating (buyer’s) agents commission.