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First Time Home Buyer Niagara

First time buying a home? Well, you’ve come to the right place! I’ve helped so many people get their first mortgage! Through my experience, I developed a “first-time buyer’s guide” to clarify the process for beginners and set expectations. If you’re able to understand everything that’s involved with the home buying process, it will help me serve you better and ultimately get the best deal done for you.

FIRST TIME HOME BUYER'S GUIDE

STEP 1

Select a partner that works for you.

Ever been in a relationship where your partner didn’t act with your best interests in mind or didn’t pull their weight, or fight for you? Chances are that the relationship didn’t make it very far. Before you take on what will probably be the biggest loan of your life, make sure you select the right partner to work with. Don’t just accept the first offer from your bank. If your bank won’t even give you an offer, no problem, because you don’t need them! I work for you, not a bank. Come to me for unbiased advice and a genuine desire to get a deal done, regardless of your situation.

STEP 2

Buy within your means.

What you can afford and what you might pre-qualify for are two different things. You must consider the total cost of home ownership. Along with your mortgage payment, you’ll have to pay for things like property tax (unless it’s built into the mortgage), utilities (electricity, gas, and water), home insurance and repairs/maintenance. If the home you’d like to buy needs renovations, you’ll need to consider where that money is coming from and how you’ll pay for it. Last, but certainly not least, you should think about how your mortgage and all the associated costs of home ownership fit into your big picture financial plan. If the total cost of home ownership depletes your bank account every month, then you’re really not buying within your means and should look for something less expensive. Don’t forget about other important life expenses like investing for retirement or savings for emergency situations.

STEP 3

Prepare to get me the info you need.

The mortgage application process is strict. Many years ago, there was a time you could apply for a mortgage with a pay stub and get a deal done, but not anymore. Tougher lending rules have created a more complicated process. Since you’ve gotten this far, hopefully you’ve got me in your corner advising you on exactly what information I require to submit your application. The faster you can get me this info, the faster we can get a deal done. Rules have also tightened around down payment sources so please be ready to prove the source of your down payment.

STEP 4

Understand ALL the terms of the deal.

We all want the lowest possible interest rate, but it’s important to understand the finer details of your mortgage and how it affects your particular circumstances. Sometimes, you pay for a low advertised rate by way of harsh penalties if you ever need to make changes to your mortgage or pay it off early. Before you accept the deal, I’ll take you through ALL the details to ensure you understand what you’re getting into and if it doesn’t work for you, we’ll re-negotiate.

STEP 5

Understand the difference between variable and fixed rates.

Do some research on your own regarding the difference between variable and fixed interest rates. The lowest rates will always be variable, but that means they’ll go up when the prime rate goes up. If you are already at the affordability breaking point with a variable rate, it might be too risky for you. Depending on general economic conditions and your overall financial picture, choosing a higher fixed rate might cost you less in the long run. This is what we’ll discuss as we get to know each other.

STEP 6

Pre-qualify to reduce stress.

Since the mortgage application process is not always an easy one, don’t get discouraged or give up. Rounding up all the necessary information can be a challenging process, especially if you have a lot going on in your life. There’s no way to avoid this, so you only have one option – push through it! Pre-qualification will make the home buying experience much less stressful. It will prevent losing your dream home after making an offer conditional on financing because we couldn’t get all the necessary information together in time.

STEP 7

Don't skip the home inspection.

Always make offers conditional on home inspections. The cost of a home inspection will pay for itself with the knowledge it provides for long term ownership of the home. Information about immediate problems can be used to negotiate the asking price of the home, while information about medium to long term issues can be used to budget for future repairs.

STEP 8

Don't buy with emotion.

The home buying process is long and often filled with ups and downs. Stay positive and try to leave your emotions out of it. If you don’t get the first house you make an offer on, there will be another one, don’t worry! Whatever you do, don’t let your emotions trick you into buying a home you can’t afford. That’s why it’s so important to establish your affordability early in the process and buy within your means. If you do your part, I’ll do mine – keep the wheels of the deal moving right through to closing day.