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Buying your very first house is an exciting milestone, but it can feel overwhelming. There are so many decisions to make, complicated terms to learn, and numbers to add up. The good news is that with a little preparation and a clear plan, you can make the process go much more smoothly. Here are a few simple tips to help you get started on the property ladder.
Know what you can afford
Before you start looking at houses, take a close look at your finances. Review your total household cash flow, including income, monthly expenses, savings, and debts. Using a spreadsheet or budget calculator app, you can work out exactly how much you can afford to spend on your monthly mortgage payments, as well as the amount you can put down for a deposit.
A good rule of thumb is to choose a home that allows you to live comfortably without stretching your budget too thin. And remember, the cost of owning a home is more than just the mortgage. Your property taxes, insurance, maintenance, and utilities will all add up.
Speak to a mortgage broker
Researching mortgages early will help you understand how much a lender will be willing to loan you. Getting mortgage preapproval or a mortgage in principle also shows sellers that you are serious, which can be a big advantage in competitive markets.
Determine your criteria
When you start viewing houses, you’ll see plenty that you don’t like. Make the process more efficient by coming up with a list of your must-have criteria and some nice-to-haves. This may include number of bedrooms, off-street parking, or distance from work. This list will help you narrow down your selection and find your dream house.
Think about the neighborhood
A house is only part of the purchase. The neighborhood you live in is just as important. Consider factors such as your commute time, schools in the area, nearby amenities, and safety. Spend a bit of time walking or driving around the area at different times of day.
Get a home inspection
A home inspection can reveal issues you might not notice on your own, such as plumbing problems or roof damage. While inspections tend to cost quite a bit of money upfront, they can save you from surprise expenses later down the line. If problems are found, you may be able to negotiate repairs or lower the price. Resources like StreetSmart can also help you do your research on properties.
Plan for the long term
Think about how long you plan to stay in the home. Will it still work for you in five or ten years? Considering future needs, such as a growing family or a job change, can help you choose a home that fits your life for years to come.
Take your time
Finally, remember that buying a house is one of the biggest decisions you’ll ever make. Take the time to ask questions, consider your options, and think things through. Patience leads to better choices and a happier life overall.
