So you’re looking to buy your first home. What do you need to know? The following covers the basics of buying your first property.
The first question you need to answer is: what can you afford? Putting together a budget and looking at your current, as well as projected expenses, is a vital first step. Take a look online at a mortgage calculator that can help you to get a grasp of what your potential mortgage payments will be. When putting together your budget, don’t forget that the cost of home ownership is greater than just the mortgage payment. Extra expenses, such as the cost of insurance, repairs and upkeep, can really make a dent in your budget.
The next step is to find a financing partner, someone who can help you get pre-approved for a mortgage. It’s important to remember that the bank or lender is going to pre-approve you for the amount of money that they’re comfortable with lending, this amount is not necessarily what you may be comfortable spending month-to-month.
Remember that mortgage documents are long and complicated. Ultimately, once you sign your name on the dotted line, you’re responsible for everything covered in your mortgage agreement. Make sure that you understand the terms and provisions before you sign. Ask your mortgage broker to explain anything that you don’t understand; that’s what they’re there for.
Purchasing a property is an exciting part of life, even if it can be stressful. Happy
house or condo hunting!
