The Ultimate Checklist For First-Time Home Buyers

Buying a home for the first time is a nerve-wracking process that no one should dive in headfirst without the proper preplanning and real estate knowledge. Considering that this might be the most crucial investment made in your life, due diligence is advised.

The current real estate market standing should not serve as a deterrent that will hinder your path towards your goal and that’s why we have decided to help you on this home-buying journey.

Grab a pen and paper and check away as we go over some important points in our article.

Equip Yourself With Knowledge

Nowadays, the internet offers us a wealth of information that can be used to our advantage and house shopping is not excluded. You might not think that there are many pros to being a first-time buyer, however, there are lots of state programs and mortgage options, both government-issued or conventional that can ease your financial burden.

All you need to do is look up this information online. For example, if you choose to buy a house in Ontario, you can head over to Wahi and adorn yourself with the knowledge that will serve you through the home-buying process.

Here’s a short list of things you need to pay attention to:

• Rent or buy? What’s the right choice for you?
• Mortgage type and mortgage preapproval
• Hire a real estate agent or make a private purchase?
• House showings tips and tricks
• Possible red flags

Start Saving Early

House buying comes with a lot of expenses – down payments, closing costs, move-in expenses and much more. The funds spent mustn’t leave you in a difficult situation. This is why we advise new buyers to have a substantial amount kept aside in their saving accounts.

Many people associate saving with something impossible during a time of economic uncertainty, but with a little bit of fun factor to it, you can save up valuable money that can aid your future. Set a 6 months savings challenge and watch as the savings pile up and the money cushion eases your stress.

Decide on the Budget 

When buying a house, it’s always recommended to use the 25% rule. The 25% rule means that the monthly expenses for the mortgage don’t exceed that mark as anything above that can be dangerous to your financial health.

Of course, if the situation doesn’t allow for a purchase, you can always opt for the rent option. 35% of American families are renting as some people like to change houses every few years, don’t like to get saddled with mortgage payments and sometimes, rent costs less than a complete purchase.

Take a close look at your finances and make a decision that’s going to shape your future positively.

Mortgage options

First things first, take some time and calculate how much mortgage you can qualify for. Of course, remember that if your loan is granted, the bought property will serve as collateral. 

Now that you have calculated the estimated mortgage number, let’s take a look at some mortgage options below.

Avoid the Adjustable-Rate Mortage 

If possible, avoid this mortgage option as the low-interest rates can lure you in at first but the lenders can adjust the mortgage rate to transfer the rising rates risk on you, making you go over the 25% allocated mortgage budget.

Go for a Conventional Loan

If you have a great credit score and the funds for a slightly larger down payment, conventional loans are lifesavers. Less costly than the federal mortgage but harder to get due to the credit score requirement and large deposit sum.

If you qualify for this loan, we strongly suggest that you pursue this path.

Don’t stop browsing and investigating

When you decide to put the online catalog down, it’s time to go visit open houses. Online catalogs are great but you need to experience the house’s aura and environment and also check out the neighborhood too. 

Open houses are a great way to inspect all the nooks and crannies of the house. Sometimes, buyers overlook the HVAC system which is responsible for heating and cooling the house. To evaluate the HVAC system start by listening to some irregular noises like clanging or hissing. Also, pay attention to any damage done to the HVAC equipment itself, indicators being: water stains, rust, dents, etc.

In addition to that, establish a great connection with the seller and see whether they agree to a full professional house inspection before you shake hands. If problems like the above mentioned exist, try to negotiate a discount price so that both parties are satisfied with the deal.

Final Thoughts

The home buying process is not an easy one and proper research is always required. Always review your options regarding mortgages and carefully handle your finances and opt for time savings. When you decide to take the plunge and buy the house, make sure that everything is in order by asking for a professional inspection. That being said, we hope that the house you choose is the house of your dreams and we wish you the best of luck.