First 3 Steps for the First Time Buyer

By Angela Nolan / April 25, 2014 / Buying a Home

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FIRST TIME HOME BUYING

Buying your first home can be both exciting and terrifying all at the same time. It will be far more exciting if you are armed with knowledge about the home buying process. Before you start going out and viewing homes, there are some steps that you should take first.

Get Pre-Approved for a Mortgage

The first step in the buying process is to find out if you qualify for mortgage financing and if you do, what is the maximum mortgage amount that you can afford. One of the things that a lending institution will examine is your credit score. If you do not have a credit card or a loan of any kind, you may not have a credit score. This is a very important part of the financing process so if you have always paid in cash for your purchases, now is the time to apply for a credit card. Make sure you use the credit card and always pay off the balance when due. Another factor that the lending institution will take into account is your annual salary, the number of years at your current employer and what debts or loans you are currently carrying. Once the financial institution has given you pre-approval for a mortgage, you will know how much you can afford.

Know where you want to live

My advice to you as a new buyer would be to look at homes on the internet, advertised in your local newspaper, etc. so that you have an idea of what homes cost, what type of homes are typically available, and what neighbourhoods are attractive to you. Take a walk or drive around to the different neighbourhoods or communities that you are considering. What are the amenities that you want nearby such as public transportation, shopping, highway access, schools, or trails? Another factor worth considering is the type of home that suits your lifestyle best. Are you a busy single person that works long hours and is hardly home? Perhaps a condominium apartment or townhome would be a great purchase for you. Considering all of these variables will provide you with a reasonable expectation of what you can afford and where you would like to live

Find a Realtor

Again, do your research. Look on the internet; ask friends and family that have recently purchased a home and attend Open Houses where you can meet local realtors. Find a realtor that will take the time to explain the buying process, educate you on the different neighbourhoods (especially if you are from out of town) and that will be patient with you as you embark on one of your biggest investment purchases. Take the time and do your homework. You will be spending a lot of time with this person and it will be a much more pleasant experience if it is someone that you like and trust.