TIPS FOR FIRST TIME HOME BUYERS
Thinking of buying your first home? Is the timing right? A home is usually the largest single investment an individual makes in his or her lifetime. The pros and cons of such a decision should be thought out and weighed wisely. If you have decided that NOW is the time for you to take the leap there are certain things you should take into account:
HOW TO CHOOSE AN AGENT?
Chose someone who knows the area you are interested in. Meet with him or her and discuss your needs and your price range. He or she will recommend you meet with a mortgage advisor and get pre-approved. That way you will not have the disappointment of falling in love with a home that is out of your financial reach at this time. Remember your first home is often a stepping stone to what you really want to end up with. It may take a few moves and some time. Be patient. Make sure your choice of agent is knowledgeable in the current Market Place. Talk with him or her and make sure your personalities are a good fit. It makes all the difference in the world and takes all the fear away. Your agent has to have your best interests at heart. There has to be a mutual trust. He or she will help you decipher your requirements. Do not be fooled by the FISBO'S out there, that is "for sale by owner" On the surface it may look like you are getting the property for less money since you do not have to pay commission. Real Estate Agents have been trained to protect you, the client. There are so many legal issues which may arise after the sale that could make the transaction VERY EXPENSIVE if you decide to go it alone without a Professional.
WHAT CAN YOU AFFORD?
Remember your agent is not a Mortgage expert. He or she will recommend some guidelines. Your GTS (gross dept service) should be within 28-32% and your TDS (total dept service) should be within 32-40%. Your Mortgage Representative will go through the details with your personally and in private. Always keep in mind that there are WANTS and NEEDS. WANTS are what everyone would like and NEEDS are what will be best for you at this time according to your present income. The Mortgage Representative you chose will do this preparation work for you to earn your business.
WHAT TYPE OF PROPERTY SUITS MY NEEDS?
There are certain criteria that you should consider:
a) Am I single or married?
b) Do I have children and if so how many?
c) Do I have special needs such as a single story with no stairs or a basement for a children's playroom?
d) Do I want a rancher, a side or back split, 3 or 4 level, bi-level, 2 story or story and a half?
e) Do I want a garage and should it be a one car or a two car? Should it be attached or detached?
f) Do I want a pool or no pool?
g) Fenced yard?
h) Most important is Location, Location, Location!
HOW DO I GET A MORTGAGE?
Your Real Estate Professional will probably recommend 2 or 3 sources for you to meet with. It is up to you to decide what is best for you based on their recommendations. Remember they are experts in their field but always make sure the rates and terms are best for you. They may differ and the final decision is yours!
WHAT MORTGAGE IS BEST FOR ME?
Again, the decision is yours but be sure to educate yourself so that there are no surprises Make sure you ask a lot of questions of your Mortgage Broker:
a) Check fixed rate variables
b) Make sure you can pre-pay each year.
c) Ask about weekly or bi-weekly payments versus monthly payments.
e) Ask about Government plans for First Time Home Buyers.
A fact most people are unaware of is that if you double your mortgage payment you can pay off a 25 year mortgage in 7 years.
Knowing all the facts can save you a lot of money.
Now, after all this is done ENJOY the process. It can be fun and exciting and does not have to be scary. This may sound complicated but it is really a very simple process when you allow the experts in the different professions involved to do the work for you! Call me, Wayne Liddy 519-436-4810 Royal LePage Peifer Realty Inc. Brokerage in Chatham-Kent today. Put my experience and expertise to work for you!
Wayne Liddy 519-436-4810 Royal LePage Peifer Realty Inc. Bokerage Chatham-Kent's Real Estate Expert. Deeply Rooted in Chatham-Kent!