Home-Buying Questions: First-Time Home Buyers Edition
Being a first-time home buyer is an exciting time in one’s life, and one that comes with many questions. Making sure that you’re informed and well-researched each step of the way can help you to avoid stress, heartbreak, and let downs. Continue reading to gain insight on some of the most commonly asked questions from first-time home buyers in Canada, so that you’ll be equipped with more answers than questions when you’re ready to start your search!
How much can I afford?
The first and foremost question when it comes to home-buying, this answer should be ranked near the top of your research list. Seeing as this is one of the first steps taken in the research process, using a mortgage affordability calculator is a helpful tool to get started and gain some insight before seeking professional help. From here, it is commonly recommended to inquire about pre-approval for a mortgage from the bank; helpful later in the process when it comes down to working alongside a realtor.
What should I look for in terms of property value?
The value of your home is determined by your individual values and what you’re looking for in a house. For instance, lifestyle attributes are crucial to consider when it comes to a big purchase like this one. Proximity to schools, commute time to work, and affordability may be more important to a new family with children in comparison to a young couple at the peak of their careers. In the end, it’s very important to evaluate your needs and wants, so that you can have a clear understanding of what’s most important to you when starting your home search. Need further assistance? A realtor is a valued asset when it comes to identifying your top values and which neighbourhoods would be best for you.
Mortgages, credit scores, down payments… help!
Although they may sound intimidating, we’ve got some easy tips to help you navigate through these steps. Your credit score should be one of the first things to make sure is in good standing before purchasing a house. Need a place to start? Try Equifax Canada to get a credit report and get things going!
You’ve found the perfect home, now what? The down payment. Typically ranging from a minimum of 5% and up to 20% of the purchase price, your down payment will be dependent on the home you wish to buy. Seek out a bank you trust to help you determine the exact cost of your downpayment so that it can be added to your budget.
Thinking about getting a mortgage? It’s recommended to shop around for options at your personal bank and other major banks, then to contact a broker to see what offers are out there. You want to make sure you’re getting the best deal around, after all!
What is a closing fee, and when does it come in to play?
An important aspect of the home-buying process to take note of is the closing fee. This is a cost that will not make its way out of the dark until your house has been purchased, therefore it’s something you will be glad to be prepared for. Typically a smaller percentage of the overall home price, closing fees exist to cover costs such as utility instalments, moving costs, lawyer fees and other costs depending on your home of interest and several other factors. Make sure to ask your realtor for an estimate on these fees to ensure they are included in your budget.
Looking for a friendly, well-located and affordable neighbourhood? McConachie Edmonton is a great place to start. Sign up for our newsletter to learn more and stay up-to-date on the latest news and events.