The Road to Homeownership
If there was ever a time to dive into the world of homeownership for your first time, it would be now. Real estate is an investment into your future and the sooner you start investing in yourself, the better!
Think of it this way; you can either help someone else pay their investment off or you can start paying your own investment off.
The current real estate market favors you! These low interest rates pave the road to homeownership in shimmering gold. What if I told you that your mortgage payment would be less than what your paying now for rent? Well, that is not unlikely, in fact it’s very probable. Becoming a first-time home buyer is a goal for so many and what I just told you, combined with all of the great benefits that are available for first-timers, make buying your first home more than a far off vision or an un-reachable goal. It can be a reality. Your reality.
If you’re reading this, then congratulations, you’ve obviously been thinking about buying your first home. Thinking about it is a great first step. The jump between thinking about it and doing it is not as big and scary as it seems. It’s certainly is a big deal, but more so in an exciting way than a scary way. One thing that scares people away is the initial investment, aka the down payment.
We all know how hard it can be to save up a lump sum of money in today’s economy. This is why, the sooner you start, the better. Every little bit counts and before you know it you have the cash and you’re ready to start house hunting.
As a first time home buyer you probably have a million questions and you may not know the necessary steps to take to lead you down the glimmering path of home ownership.
The following is your itinerary for the next little while –
First and foremost: start saving until you have a solid down payment (minimum 5%). For example, 5% of $300,000 is $15,000. I usually say if you have a base amount of $10,000-$15,000, you’re on the right track. That being said, the more you can afford to lay down in the initial investment, the better. So if you can afford to save $20,000-$30,000, all the better! If you have an RRSP, congratulations! You are one step closer, To learn more about withdrawing from your RRSP for your down payment follow the link --> http://www.ratehub.ca/rrsp-home-buyer
Secondly, get pre-approved. Talk to a mortgage specialist to find out what you can afford, and to educate yourself on the different kinds of mortgages because yes, there are multiple kinds. Don’t forget to factor in other purchasing costs such as moving expenses, GST & HST (only on a new property), legal fees, and a home inspection. To see how you save on the Property transfer tax, follow this link --> http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/first-time-home-buyers (Property transfer tax is calculated as 1% on the first $200k & 2% on the balance)
To see how you can qualify for a first-time home buyers tax credit follow this link --> http://www.ratehub.ca/first-time-home-buyer-tax-credit
Third – Now that you’ve spoken with a mortgage specialist you may have two amounts – what you can afford, but maybe you don’t want to spend quite that much, so your second amount may be what you actually want to spend. As your REALTOR® I will now start to go through the neighborhood analysis with you. This is where we will discuss your favorite locations and what you like about them. Next, we will do a need VS. want analysis. Before we move forward, I will make sure I have a strong understanding of what you want, what you need, and why you need it. This is crucial, as it will enable me to show you houses that really suit you, your lifestyle and what you want/need. I will also take this time to walk you through what will happen when you find “the one”, the general process of buying a home and to answer any further questions (there will be questions, lots of questions), before we get started.
The fun part – It’s time to start looking at homes; together we will quickly and easily determine which homes suit your needs best, and when it’s time for you to make the final decision, you will feel the excitement, as I guide you through the closing process, one step closer to home ownership.
I always get people contacting me telling me that they’ve started saving for their down payment, or that their goal is to buy a house in the next three years! Honestly, nothing makes me happier than seeing the people around me learn how important this step in their life is and seeing their motivation to fulfill this goal that they have. Everyone has questions about it, that’s something I’ve learned, so please don’t be afraid to ask. Becoming a first-time home buyer can be scary, and at times overwhelming. My goal is to make the process as simple and fun as possible, because this really is an exciting time for you and it’s a milestone, so enjoy it! I’ll be there right from that initial contact when you tell me that you’ve started saving for your down payment, or that you want to start looking at houses, up until the keys to your first home are in your hand and even after, to see how life is going for you as a first-time home buyer.
I’ve sourced out a lot of information to help answer some of those inevitable questions, my Pinterest board is overflowing with helpful tips and tricks for all the first-time home buyers out there! Please check it out ---> https://www.pinterest.com/alburden/advice-for-first-time-home-buyers/