Things might not be as easy as they seem for the first time home buyers. Real estate looks like an easy market but it can be very tricky. You can expect to bump into all sort of mean people and make all sort of foolish mistakes while choosing a house for yourself. Here is a list of things that a first time house buyer should keep in mind while going for the purchase.
- Type of home. First thing you need to understand what kind of home you want. Either you want to live in Downtown Condo like Axis Condo or 75 Esplanade Condo or you want a house in suburb remote cities. There are pro and cons for both. You need to decide beforehand.
- Know your range. It is wise to know how much you can actually afford. The banks and money lenders will give you the figure after getting through the complete calculation but those numbers cannot be true. You need to think about all the incurring expenses you might come across until your mortgage term matures. You must not get overwhelmed and spend too much on your first home. It is advisable to go easy the first time.
- Make a wishlist. You should make a list of things you want in your new house. Make a list with your priorities at the top. This will help a great deal in knowing what is best for you.
- The closing costs. Done forget about the closing costs which may be something from 1.5 to 3.5 percent of your actual cost. This may include the inspection fee, legal fees, transfer tax, insurances and interest adjustment.
- Get a pre approval after having decided how much you have in your pocket, having calculated the closing costs and deciding what you want the next step is to contact the bank or money lenders for mortgage plans. It is very important to get a mortgage approval. Most of the real estate agents don’t entertain clients who come before getting a mortgage approval.
- Different payment options. It is very necessary to know all the payment options available to you. Many payment plans might look appealing but they may have hidden catches. It is important to know all the options and study them in detail.
- Calculate the moving expenses moving is expensive if you have hired professionals to help you out in this regard and if you are required to travel a great distance. It is important to add moving costs to your budget and know all the hidden moving costs and be prepared for them.
all these tips are very useful for a first time house buyer in Canada.