We’ve all heard it before – buying a home for the first time can be nerve racking, overwhelming etc etc…
Now I’m not trying to downplay the seriousness of buying a home – but why does everything we read and hear always seem to be based on fear? There is so much information out there to educate ourselves with – this I believe is the first step to take when considering your first home purchase. Familiarize yourself with the different information available in the comfort of your apartment, parents house, or wherever you’re currently dwelling. By no means can anything you read on the internet or hear on the news be taken for face-value, but it is certainly prudent to familiarize yourself with what’s out there first.
Buying a home is of course the single biggest financial decision we can ever make, there is no doubting that . But I also currently feel that same statement should be followed with – it is also the best financial decision we can ever make! Especially for us lucky ones living in the Waterloo Region!
CMHC is a great jump-off point – here you will find unbiased information without the risk of bombarding ‘contact request forms’ asking for your email address to receive any further information. You can find consolidated information for buying a home here, dig a little deeper with a step by step overview, or if you prefer a hardcopy can be sent to you for free.
You are lucky to be a first time home buyer as there are quite a few incentives to be had…
Land transfer - with up to $2000 refunded
Home Buyers Tax Credit - claim up to $750 off income tax
Home Buyers Plan - withdraw up to $25,000 from RRSP towards home purchase
Energy Efficient Plan - qualify for up to 10% mortgage loan insurance premium refund
Instead of renting why not investigate the 5% down option as well? Even the not so prevalent but certainly relevant cash back mortgages are still available from our friends at the local credit unions for example.
Buying a home should be fun, exciting and not a stressful endeavor. Yes granted, there should be reservations and cautions but searching for a home should be fun – if this isn’t happening something is wrong.
Now to the meat and potatoes..Get pre-approved – many people confuse pre-qualified with pre-approved..a pre-qualify can be done over the phone and is merely completed with simple information you provide. Pre-approved actually sets the loan process in motion, you will know exactly what you can afford and are armed and ready to pull the trigger when you find something you really want.
“OK, I’m ready, so now what?”...
Get out and look at homes, lots of them – if your agent isn’t willing to take you around for an initial intensive look at homes to narrow your search – then you need to find one who will! Remember, this is your first home, you may think you know what you want but until you see what your budget can afford, your “must have’s” vs “wants” can change in an instant. Look at homes, take it all in and then narrow your search accordingly – a good agent will naturally do this for you.
Location location location - IMHO the most important for many reasons! Work, school, friends & family, transit routes, and recreation all need to be close. With the price of gas these days buying a house in a “cheaper market” and commuting doesn’t necessarily make sense financially (an entire blog entry can be dedicated to this)...let alone the stress and time-loss of battling traffic, weather, wear & tear on your car etc…
With the continuation of our downtown core revitalization a condo has never been a more viable option IMHO. But with that being said there are definite pro's and cons to a condo.
Next look at Bedrooms, bathrooms, square footage, age, condition, and mechanicals are all important pieces of the puzzle. You will rarely find the perfect place – even it comes down to simply painting, there will always be some type of work required to make it yours. Be opened minded about the homes you see.
Also look at house situational factors – steps up to front porch, walkout basement, neighbor window locations in relation to yours, parking and driveway access etc..
Is the neighborhood up to your expectations? Does everyone look after their yards? Are people out walking & biking? Is the house the largest or the smallest or in between?
All of the above is hardly an exhaustive list but certainly some of the most important focus points when house hunting.
Now before I go, please do not forget about closing costs - home inspection/lawyer fees/land transfer tax/property tax and utility adjustments/property insurance/moving costs/carrying or ongoing costs are all important to consider.
Now get out there, contact a professional and get into the market!
Good luck! And remember, Have Fun!
Lee
Now I’m not trying to downplay the seriousness of buying a home – but why does everything we read and hear always seem to be based on fear? There is so much information out there to educate ourselves with – this I believe is the first step to take when considering your first home purchase. Familiarize yourself with the different information available in the comfort of your apartment, parents house, or wherever you’re currently dwelling. By no means can anything you read on the internet or hear on the news be taken for face-value, but it is certainly prudent to familiarize yourself with what’s out there first.
Buying a home is of course the single biggest financial decision we can ever make, there is no doubting that . But I also currently feel that same statement should be followed with – it is also the best financial decision we can ever make! Especially for us lucky ones living in the Waterloo Region!
CMHC is a great jump-off point – here you will find unbiased information without the risk of bombarding ‘contact request forms’ asking for your email address to receive any further information. You can find consolidated information for buying a home here, dig a little deeper with a step by step overview, or if you prefer a hardcopy can be sent to you for free.
You are lucky to be a first time home buyer as there are quite a few incentives to be had…
Land transfer - with up to $2000 refunded
Home Buyers Tax Credit - claim up to $750 off income tax
Home Buyers Plan - withdraw up to $25,000 from RRSP towards home purchase
Energy Efficient Plan - qualify for up to 10% mortgage loan insurance premium refund
Instead of renting why not investigate the 5% down option as well? Even the not so prevalent but certainly relevant cash back mortgages are still available from our friends at the local credit unions for example.
Buying a home should be fun, exciting and not a stressful endeavor. Yes granted, there should be reservations and cautions but searching for a home should be fun – if this isn’t happening something is wrong.
Now to the meat and potatoes..Get pre-approved – many people confuse pre-qualified with pre-approved..a pre-qualify can be done over the phone and is merely completed with simple information you provide. Pre-approved actually sets the loan process in motion, you will know exactly what you can afford and are armed and ready to pull the trigger when you find something you really want.
“OK, I’m ready, so now what?”...
Get out and look at homes, lots of them – if your agent isn’t willing to take you around for an initial intensive look at homes to narrow your search – then you need to find one who will! Remember, this is your first home, you may think you know what you want but until you see what your budget can afford, your “must have’s” vs “wants” can change in an instant. Look at homes, take it all in and then narrow your search accordingly – a good agent will naturally do this for you.
Location location location - IMHO the most important for many reasons! Work, school, friends & family, transit routes, and recreation all need to be close. With the price of gas these days buying a house in a “cheaper market” and commuting doesn’t necessarily make sense financially (an entire blog entry can be dedicated to this)...let alone the stress and time-loss of battling traffic, weather, wear & tear on your car etc…
With the continuation of our downtown core revitalization a condo has never been a more viable option IMHO. But with that being said there are definite pro's and cons to a condo.
Next look at Bedrooms, bathrooms, square footage, age, condition, and mechanicals are all important pieces of the puzzle. You will rarely find the perfect place – even it comes down to simply painting, there will always be some type of work required to make it yours. Be opened minded about the homes you see.
Also look at house situational factors – steps up to front porch, walkout basement, neighbor window locations in relation to yours, parking and driveway access etc..
Is the neighborhood up to your expectations? Does everyone look after their yards? Are people out walking & biking? Is the house the largest or the smallest or in between?
All of the above is hardly an exhaustive list but certainly some of the most important focus points when house hunting.
Now before I go, please do not forget about closing costs - home inspection/lawyer fees/land transfer tax/property tax and utility adjustments/property insurance/moving costs/carrying or ongoing costs are all important to consider.
Now get out there, contact a professional and get into the market!
Good luck! And remember, Have Fun!
Lee