Buying your first property, be that a sprawling country manor house (check you out!) or a humble city apartment, is a process that is both hugely exciting and somewhat nerve-wracking in equal measure.
Amongst the wealth of information flying at you from all directions, it can be hard to stay focused and with this in mind, continue reading for some important information for first-time buyers.
Start Saving for a Downpayment Immediately
The amount of money you are hoping for and indeed, will be offered, by your mortgage lender will determine the amount you need for a downpayment, which is why many first-time buyers choose to apply for a mortgage in principle before looking for houses.
The current economic climate means that saving any amount of money, let alone enough for a downpayment or deposit on your first home, is even harder than it has been in the past, so you must start to save as much money as you can as soon as possible.
Choose the Right Mortgage Broker for You
It is absolutely essential to choose the right mortgage broker and payment plan to suit you. This reputable and renowned mortgage broker Penrith, for example, serves thousands of happy and satisfied first-time mortgage customers every year.
Some key tips to help you include the following:
- Trust your instincts and how you feel in initial conversations
- Read reviews from different sources
- Ensure the availability and enquire as to how you can contact them and when
- Compare what is included in the service
Always Have a Mortgage Preapproval Letter
Essentially, a preapproval letter from your mortgage lender is an official document outlining the amount of money you intend on borrowing and the specific details and terms of the loan.
As soon as you are ready to start looking for a home and are absolutely committed to the entire process, you will be taken far more seriously by prospective realtors and private sellers when your preapproval letter is present and correct. Approaching a mortgage lender that is offering the best mortgage rates in Canada (or elsewhere more relevant) will likely mean you can get pre-approved for a mortgage with more favourable terms, which puts you in a stronger position when looking at potential properties. Using a reputable lender will ensure that all the details are accurate, which is key if you want the house buying process to be stress free. Especially in the case of first-time buyers, you also need to ensure you keep all documents in order and updated through every step of the process.
Consider the Different Types of Homes
When looking for your first house or apartment, it may well help to consider the different types of homes available and cross-reference the pros and cons with your budget (which you must never go over).
Townhouses or condominiums are often more affordable and even more practical than self-contained houses, but they do come with adjoining walls, which are thinner than the average wall. Additionally, they also usually incur homeowner association costs.
Existing homes, rather than new builds, are usually cheaper than newly constructed properties but obviously may require additional and possibly even expensive renovations and maintenance tasks in the future.
New-builds are, as you might expect, not only brand-spanking new, but are also often designed to the buyer’s preferences. For example, you may well be given the chance to choose the paving slabs for the backyard, the space taken up by the lawn, the style of splashback in the kitchen, or even the bathroom tiles.
