First Time Buyers

 

Buying your first home is very exciting because it holds the promise of independence, pride in yourself for having sacrificed to save, and perhaps even starting your own family. It’s exhilarating.

At the same time though, there is some trepidation because it is a very big decision and you have a million questions. What about financing? What can I afford, comfortably? What are the closing costs? Do I want a fully renovated home or a fixer upper? How do I find a reputable agent?

Let me try to answer some of these questions. The first stop you should make is to the bank or mortgage broker. They will go over the costs associated with buying a home including closing costs (lawyer fees, land transfer tax(es), and the cost of running a home including property taxes, heat, hydro, water. 

The mortgage broker will calculate these costs and determine affordability based on your income. Then they will pre-approve you and give you a price range. Remember, pre-approval does not mean approval. Everything hinges on whether or not the house appraises. You can decide what you are willing to pay for a home but the final decision rests with the lender. If the house does not appraise you would have to come up with any shortfall between what the lender will lend you and the price you agreed to pay. So be careful.

The kind of home to buy as a first timer should focus more on needs than wants. For example, if you have a small down-payment, you will not have much extra cash to do major repairs. Therefore, you should be mindful of the not so aesthetically pleasing stuff like roof, wiring, plumbing, and windows.  These are the items that you have no choice but to repair if something goes wrong.

Next stop is your realtor. I have a terrific list of questions you should ask your realtor before hiring them. The answers the realtors give to these questions will help you tremendously in making this very important decision. After all, the process should be enjoyable - it is your very first home. Just email me and I will send this list of questions to you. 

You should interview a couple of agents before making the decision. One way to find a good agent is to ask your friends or relatives if they have had a good experience with an agent. If I am fortunate enough to be your agent, I would ask to meet with you and I would assure you that there is no obligation. We would not sign paperwork until our next meeting so, no pressure. If  you decide to go ahead, I will go over the process in detail, step by step, from helping you select the kind of property you would like, to discussing the various legal forms (Agreement of Purchase and Sale, Agency Relationship) and, of course, outlining negotiating strategy. 

I hope this helps and please let me know if you would like me to email you my in-depth booklet on the buying process.

If you would like some thoughts and ideas about listing your home, do give me a call.

Carmel Kidd

Phone: 416-505-7513