First Home First Hints
Congratulations! You're about to move out of an apartment into your first home. What a great move, but you need to know a few things and buy a few things. Remember there will be no "building manager" to take care of things for you - you're it!
First things first. Let there be light, but where is the fuse box? Does it use fuses or just switches? (Hint: Label each switch with white tape and black letters so you can see them easier in the dark.) It's a good idea to turn the switches off and on a few times so you're used to how stiff they can be. Today's home buyers face what can seem like a bewildering array of questions. How do you find a trustworthy agent? Which mortgage is right for you? Is remodeling a worthwhile investment? But making the right decisions for your situation doesn't have to be an overwhelming experience. Like millions of people, you too can efficiently work through the process with ease and reach your dreams of homeownership.
Tips On Buying Your First Home
- Make a list of all the features you want in your new home such as number of bedrooms, bathrooms, proximity to schools, shopping and workplace.
- Be sure you can afford your home. Your monthly housing costs should not be more than 32% of your gross monthly income and your entire monthly debt load (which includes other debts such as car loans and credit card payments) should not be more than 40% of your gross monthly income.
- Calculate your other monthly living expenses such as food, clothing, transportation, personals and childcare to ensure you can afford your mortgage payments.
- Obtain a pre-approved mortgage form the lender of your choice. This will help you determine the price range you should be looking in. With a pre-approved mortgage, your lender will guarantee the interest rate for up to 60 days.
- You may wish to have an independent appraisal done of a property before you offer a price. It can keep you from paying more than the market value.
- Ask your REALTOR for a copy of the Property Condition Disclosure Statement. This document is completed by the sellers and ensures the buyer gets complete information about the property they are about to purchase, and alerts buyers when they need to do more research on a property.
- If buying a new or existing condo, look beyond style and amenities and investigate whether the construction is of good quality. You can ask for a copy of the minutes to Strata Council Meetings to determine what kind of problems the condominium has had in the past, and the expenses.
- It is always a good idea to have the home inspected from a professional home inspector. An inspector's written report should include how well-built the home is and whether any repairs are necessary and the estimated costs.
- Don't forget about other costs when you buy your own home such as legal fees, (property taxes and the GST (if purchasing a new home).