The purchase of a home is an exciting time. If you are a first-time home buyer in Burlington, the process is even more thrilling!
Whether you have been saving for years to buy a home, are a recent college or university graduate, or are newlyweds, being a homeowner for the first time can be intimidating. Questions such as “how much do I need to have to buy?”, and “what other costs are involved in buying a home?” are just two common ones we see frequently as mortgage brokers in Burlington.
Fortunately, we have identified a few key factors that all first-time home buyers must keep in mind before embarking on the home buying journey.
How much can you truly afford?
Don’t beat around the bush here or identify an amount that is based on a future event happening, such as a job promotion. Brokers can help you identify how much you can really afford on a home and will operate with your best interests in mind. If you’re on a tight budget, there is nothing wrong with finding a great, smaller home to begin with before eventually moving to a bigger home.
What’s the most important thing to you in a home?
A big backyard? A large kitchen? A basement that is fully finished? Identify what your key values are before looking at homes. The truth is that you are unlikely to find everything you want in your first home, so it’s important to rank what is most important. You are more than likely going to have to compromise on a few of these.
Get a mortgage pre-approval
This is a big one because in today’s real estate market many sellers will not take your offer seriously if you do not have a pre-approval. Plus, if you’re already approved for a mortgage, you can make an offer and not have to act with the expectation that you will automatically get approved. Once you and a seller come to an agreement, you can sign the deal and start the closing process much quicker if you have a pre-approval.
Put as big of a down payment as you can afford
The general rule is that a down payment on a home is 20% of the selling price. However, this doesn’t always happen, especially for first-time home buyers. The more money you put down up front can significantly reduce your monthly mortgage payments and help you get off to a solid start. That being said, you also don’t want to sacrifice your finances and not be able to afford closing costs, so it’s important to find a nice balance.
With this information in mind, a first-time home buyer in Burlington now has an idea of what they can expect when they meet with a broker or real estate agent initially.
For more information and guidance on how we can help set you up for success when buying a home for the first time, reach out to our team today!