5 Tips for First Time Home Buyers

Figure out the true cost:  Buying a home will be one of the biggest financial decisions of your life, so you  need to consider the cost of home ownership versus your lifestyle. Can you comfortably carry your mortgage, and still live the life that you want? 

Make sure to leave yourself with enough wiggle room to enjoy what’s important. 

Related: Why it’s still a good time to buy a home 

Get your  house in order:  It is important that you understand the long-term costs and choose the right mortgage. Before you start your search, get pre-approved for a mortgage, remembering that just because a bank says you can afford something, doesn’t mean that you actually can. Run the numbers to see how much home you can realistically afford. 

Budget for extra costs:  A rule of thumb is to save between 1 and 3 per cent of the purchase price which will apply towards closing costs. But don’t forget to factor in the extra expenses that we sometimes forget, like utility hook-up, house insurance, renovations, and furniture. The real cost of closing on a home might be more than you think. 

Related: Never buy a house without a home inspection 

Create an emergency fund: Repairs and maintenance – or even an increase in fees or taxes – can catch you off guard. Having an emergency fund in place before you buy a home will give you peace of mind, and the financial buffer you will need to tackle most unexpected expenses. 

Add more revenue:  You can put a dent into your mortgage if you keep an eye out for opportunities to manage housing costs. Consider renting out part of your home, or having a roommate to help offset expenses. You could even rent out a spare room occasionally using AirBnB, or rent out an extra parking space if you have one.  

Shelby Wilk

Shelby Wilk

CENTURY 21 Broadway Park Realty
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