Can you believe over a million Canadians take the plunge and purchase their first home every year? Being a first-time homebuyer is both exciting and scary. The real challenge is in what you know and what you don’t.
If you fear making a mistake when it comes to getting your first property, you can breathe easier since you were able to stumble across this article. Keep reading to unveil a quick checklist you’ll need.
Save in Advance
Every smart homeowner knows it’s wise to have a good chunk of money aside to put towards a home. In Canada, you will need to put down at least 5% of the value of the home as a down payment.
Aside from the down payment, you also want to think of closing costs as well as move-out expenses. You may need additional funds for repairs or furniture upgrades.
Know Your Credit
It is important to know where your credit stands, as those with bad credit will not be able to buy any home even if they have the money. That is unless you purchase a home with cash.
A majority of banks in Canada require that you have a score of at least 550. This is a bad credit score, but it’s still possible to get a house. However, it’s a better idea to wait and fix your credit score, and have at least 500 in order to get the best rates. Otherwise
Work with a Realtor
The real estate market is huge, and you may miss out on great finds without the help of a professional. The Lucas Group is an excellent real estate company with knowledgeable realtors who can help you during your house search.
Although working with a realtor is optional, teaming with an agent will benefit you in every aspect of the home-buying process. Realtors have your best interest at heart and will help you through the lending and pre-approval process.
Never Skip on Home Inspection
A home may be beautiful from the inside out, but that doesn’t mean there are no problems with it. Conducting a home appraisal is smart as it gives an accurate estimate of the value of a home. You can also renegotiate the price should there be problems requiring repair.
Closing on the House
Following the inspection, you will need to close. This involves signing all paperwork regarding the interest rate and the final terms of the mortgage.
You can expect a 1-4% fee with closing costs. It’s a good idea to ask if the seller can pay all or most of the closing costs to help you save money.
Feel Confident as a First-Time Home Buyer
Being a first-time homebuyer doesn’t have to be difficult. You can buy a home you can call your very own the smart way. Having a checklist and following it will prevent mistakes, losing money, or passing your budget. It’s more than possible to find your perfect home at the right price by following these tips.
If you found this article useful, you can find additional home tips on our website.
