Buying a home for the first time is one of the crucial points in anyone’s life. If they are getting their desired home then the feeling will be doubled. However, buying your home for the first time isn’t always a smooth walk. The procedure of buying a new home involves too many considerations. If you are browsing our MLS London page then you are more likely to get some of the best properties in town but just before settling for one, here is something that you should be reading to avoid any confusion regarding buying a home for the first time.
Start to Save Early
When it is time to buy the house for the first time then instead of browsing homes, first of all, you should be working on your saving. If you are wondering what is included in saving is:
- Down Payment:
The amount you require for the down payment depends on the mortgage type you have chosen and the lender. There are several conventional loans that offer as low as a 3% down payment if you have an excellent credit score and you are going to buy a home for the first time. But don’t underestimate the percentage because a 3% down payment of 400,000$ is 12000$. So, you should start to save earlier for your dream London Ontario real estate by opening up a dedicated savings account and automat transferring a small amount of your monthly savings and even any Govt incentives and tax refunds or bonuses. For a better idea, you can use a down payment calculator to find the right amount of down payment you need to save for.
- Closing Costs:
The term closing cost refers to the expenses you will need to pay at the end once your mortgage is finalized. Usually, they are 2-5% of the total amount of loan. You can also ask the seller to pay some portion of the closing cost as well and you can save expenses on the home inspections, by shopping around.
- Move-In Expenses:
These are the expenses related to the house move in that you may need immediately once you have moved to your houses such as emergency repairs and installation of anything broken or new so set aside some money for it.
How Many Homes You Can Afford
You can find several great options for houses for sale ST Thomas but before you browse, you will need to figure out how much you can spend on a house safely. You can find several home affordability calculators that help you understand to set a price range that is truly based on your debt, income, credit score, down payment, and the area where you are planning to live.
Mortgage Rates and Fees Comparison
According to the Consumer Financial Protection Bureau, it is recommended for first-time homebuyers to opt for the loan estimates for the same type of mortgage from different lenders and compare them; this includes any possible origination fees and interest rates. You can also get the opportunity to buy discount points from some lenders which is a fee that the borrowers can pay upfront to reduce the interest rate. Buying points can be hugely beneficial for those who have planned to live in the house for longer.
Carefully Choose a Real Estate Agent
When you start to browse for homes for sale Strathroy then you will need to contact a real estate agent who can guide you through the negotiation and process of closing. You will need to find a proficient real estate agent in that area to make sure that you are going to end up with success. Only a skillful real estate agent can help you find the home that you love in the area. You can look for agent referrals from your friends, family members and also go online and find specific platforms such as Realtown where you can look for a professional real estate agent. Interview the potential agents with the right questions and don’t settle without a referral. Ask about their experience with first-time buyers and how much they can help you to find the home you always dream of.
Stay Under Your Budget
You can get financed by the lender with enough amounts that you can afford or you may need to spend out of your comfort zone. If you don’t want to have any stress regarding this then you can simply stick to the budget you have set. You can browse our MLS listing for the properties that are priced lower than your price range as this will help you to save on buying your first home while going through the competitive market.
Have a Home Inspection
If you have found your dream house then you should perform a thorough home inspection which includes the assessment of the problem in the structure and mechanical systems as this will help you make a practical decision before settling for the property. Keep in mind that the normal inspections don’t provide information about mold, pests, and radon. When you are about start inspecting, make sure you know what you are paying for. The inspector should have access and should visit every part of the house, such as crawl spaces and roofs. You can follow the inspector around as this will allow you to understand any problem with the home and as questions about this. Though it is crucial to attend the inspection if you can’t for any reason then you should review the inspector’s report carefully.
Sufficient Home Insurance
Your lender will ask you to buy the home insurance before closing the deal. Home insurance usually covers the cost of repairing the damages caused by the incidents that are in the policy. You should buy enough home insurance policy that will be fulfilled the cost of the house damages if it gets destroyed by any means possible.