So Christmas is over and you are getting itchy feet to start looking around at some homes. Getting tired of your current accommodations and you need a place to call your own. Why not? Interest rates are still low and you’ve plopped some numbers into a handy mortgage calculator online and it appears that you should be able to get into something cheaper then you currenlyt have!
So, you hop in the car and start driving around the neighbourhood looking for something that catches your eye. You see an open house sign in the distance, so you quickly drive over in anticipation to look at what this home has to offer! Wow!! Okay.. this is a cool house and it is so big and has a great sized yard with a POOL (albeit, all covered with snow)!! Now you know you are definitely hooked and your pursuit to make this happen begins.
The picture, that i’ve painted, is how most new home buyers begin the course of looking for a new home. But if this is all that you have done to prepare for this day then you may be in for a huge disappointment. Buying a home can be described as an “INTENSE & EMOTIONAL ROLLER COASTER” and what we typically find is that most first time home buyers haven’t started the process to prepare for this day.
What do you mean “PREPARE” for this day?
According to a 2012 Nanos Research1 study, commissioned by CREA (Canadian Real Estate Association), found that more than 63% of respondents indicated a “major need” for more information about the financial details of buying a home. Does it surprise you to know that this number rose to over 70% when considering respondents between the ages of 18 and 29 only.
Buying a house requires a well laid out plan including an intense look at your finances. This roller coaster ride is felt by both the buyer and seller and as Realtors we attempt to mitigate the causes of the ups and downs. We engage the proper professional at the proper times to ensure a positive outcome. Teaming up with the right mortgage professional can make the difference between you getting your home or not!
“With credit, it is something most people do not check on a regular basis. As such, there could be a number of issues with their credit history and/or score that could negatively affect their mortgage application with potential lenders. By meeting with a mortgage professional early, these issues can be identified and rectified
As for the costs associated with buying and financing a home, First Time Buyers may have saved just enough for their 5% downpayment, but did not realize how much more they needed to save over and above their 5% downpayment. These costs include but are not limited to: legal fees, property tax adjustments, land transfer tax, title insurance, inspection costs, utilities set up, any many more. A mortgage professional can outline all these fees and costs to allow for proper planning and savings. This avoids the stress associated with having to come up with money last minute that the buyers did not plan or save for. “prior to the start of the buying process.
As a realtor, we can certainly help to minimize the train wrecks and recommend a team of professionals at every step of the way. As a buyer, your first step (if not your second) should be to find and talk with a mortgage professional that will take the time to map a plan to home ownership.
HomeBuyers Road Map – CREA
It Pays to Know – Federal Consumer Agency of Canada
Buying your First Home: Three steps to successful mortgage shopping – Federal Consumer Agency of Canada
1 Survey conducted by Nanos Research and commissioned by The Canadian Real Estate Association. The survey was a random national telephone survey of 1000 Canadians aged 18 and over and is considered accurate ± 3.1%, 19 times out of 20.