Buying your first home? Consider this:
For most people. buying a home will be the most significant investment they will ever make in their lifetime. So before you take the plunge into home ownership make sure you have the answers to these questions:
Do I have steady income?
You won't even get approval for a mortgage if you don't have a steady income and a reasonably steady job history. So if you've just started working it might not be a good time to apply for a mortgage. But that doesn't mean you can't start preparing. Build up other parts of your financial portfolio so that when the time is right you are fully prepared.
Have I saved enough money?
For some mortgages, buyers need as much as 15-20% of a home's price. Some down payments are less, depending on the lending institution, but many potential buyers need to bring a considerable down payment to the table before they can purchase a home. And this isn't the only money you will have to come up with. There are commitment and lawyer fees, appraisals and fees associated with the closing process, to name a few.
What kind of home do I want?
If you've got your job history and finances in order, then you can ask yourself what type of home is right for you? A condo or town house might seem like the perfect fit for a single buyer. However, if you can see yourself with a spouse or family in a few years consider something more family friendly. Make sure you look at the big picture before picking the right home for you.
What area do I want to live in?
Once you've decided what type of home you'd like, find yourself a good real estate agent that is knowledgeable about the area you're interested in. Most homebuyers use a real estate agent that was referred to them by a family member, friend or colleague. A good real estate agency, like Island Living Real Estate, can provide you with helpful information about the area, and inform you of what similar properties have sold for. Working with a good Realtor will make the process much easier for first homebuyers.