Buying a home is a huge ordeal. You have to find the home that you are interested in, then find the funding that is going to cover the cost of the home. And there are several factors that go into getting you the funding that is going to cover the home. How can you ensure that you have financial success when buying a home? There are several tips that can ensure you do have financial success. For those who are considering buying a home, it is worth looking into how these tips could help your situation.

Financial Tip 1: Be Careful What You Spend Your Money On

Around three to six months before buying a home, be sure that you are not making a major purchase or taking chances with your money. If you decide to take a risk with your money during this time frame, you may find that the lender views you as a financial risk. Some things that can red flag you include opening up new lines of credit, buying large items like cars and the like, and even getting a loan for personal use can throw you out of the running for getting a home loan.

Financial Tip 2: Get a Home Loan that is Pre-Approved

Why should you aim for pre-approval? This is going to help you in the process of buying a home. A pre-approval means that the lender has looked at your individual case, and they know how much they are going to give you for a home. This can be a great bargaining chip when finding a home that you love and there are other competing offers on the home.

Financial Tip 3: Avoid Timing the Market

Don’t obsess over when is the best time to buy on the market. Timing the market can mean missing out on the best house for your funds and your personal preferences. Those who try to time the market often end up on missing out on the time to buy the home of their dreams and regret this decision for several years to come.

Financial Tip 4: Bigger Doesn’t Mean Better

When you walk into a neighbourhood with the intent of looking for a home to buy, you may see the biggest home on the block and think that this is the best option for you. However, bigger is not always better. Remember, from a financial standpoint, when you buy the biggest house in the area, you are not going to make more money back later. Your home is valued at the same as those that are around you, regardless of the fact that your home may be double the size.

Financial Tip 5: Remember the Hidden Costs

Remember that when you are buying a home, there are other fees that are included with your mortgage in most cases. Many people are surprised to find that they underestimated just how much their monthly payments would be since they did not think about including property taxes, insurance and other fees that they may not have paid when they were renting a home.

Financial Tip 6: Emotions and Finances Don’t Go Hand in Hand

When you are buying a home, this does mean that you need to let emotions rule your decisions. In fact, it is better to look at this from a financial standpoint rather than emotional. From a financial standpoint, you want to go with the best home that fits your budget and gives you the most bang for your buck. You do not want to focus on the backyard aesthetics.

Financial Tip 6: Be Sure to Get the Home Inspected

You are going to be spending a lot of money on this home, so be sure that you are getting a home inspection on the house. You want to ensure that you are getting the most bang for your buck, but also that you are not buying a home that is going to be a financial blunder later. In fact, most lenders are going to want to have a home inspection done before they lend the money.

Financial Tip 7: Check out the Neighbourhood

Before purchasing a home, be sure that you are checking out the neighbourhood. You want to ensure that the home you buy is in an area that is going to have a good resale value later. If the neighbourhood is questionable, chances are the home is not going to sale later, for even what you paid for it. Plus, this can give you just one more reason why this house may be the best option for you!

Financial Tip 8: Get Ready to Bid

If you find a home that you love, that is in a great neighbourhood, that is also in your price range, be prepared for a bidding war. However, be smart about this. Check out what other homes have gone for in the area and base your offer on this information. Do not allow emotions to get the best of you and offer more than what the home is worth.

Financial Tip 9: Prepare for a Down Payment

Remember, in Canada you have to have a 5% down payment on any home that you buy. However, the more that you can save, the better you are going to be! The more down payment you pay, the lower your monthly mortgage rate.

Financial Tip 10: Remember Fixes in a Home May Mean More Money

When you are buying a home, you may have big dreams of what you want this home to look like. However, this may not be something that you can do until you have been living here for a while, as renovation projects take money to fund!

Remember, when buying a home, be sure that you are working with a real estate agent you can not only have help with finding the right home to buy, but they can also be full of financial tips that can help home buyers. Contact us today and we’ll help make your next real estate transaction a successful one!

Buying your first home is an exciting moment! It shows that you are being responsible, and you may even have dreams of what this experience is going to be like upon moving into a home. For many of those who are ready to buy their first house, having a handy checklist to use as a guide for what you need is invaluable. There are many first-time home buyers that find they do not have everything that is needed, and the process is delayed. This delay could result in losing that perfect dream house you have already picked out, or the delay could make you question whether buying a home is a good option for you or not.

What can you Afford?

The first aspect on the checklist is to consider what can you afford! Before you even start looking at homes to buy, you must know just how much you can afford when it comes to a mortgage. What monthly payment are you comfortable at for the next fifteen or thirty years? Along with knowing what you can afford, be sure that you are factoring in those costs that are not related to the actual cost of the home, such as:

— Inspections and legal fees

— Taxes for the property

— Insurance for the property

Remember the Down Payment

Do you have a down payment? In Canada, a down payment of at least 5% is needed to purchase a home. However, remember that the larger the down payment you make the less you will be having to pay on your mortgage payments. A few helpful tips for saving for this down payment are:

1. Consider an automatic savings plan
2. Save in a Tax-Free Savings Account
3. Look for programs that you may be able to take advantage of that are designed for first time home buyers.

Know your Mortgage Options

There are numerous mortgage options that you need to consider. A mortgage is not simply a one size fits all solution. There are mortgages that include a fixed rate, variable rate, open and closed mortgages and the like. The best advice is to talk with someone about your options and what each will entail. From there, you can choose the best one and get pre-approved for this. Pre-approval is preferred for most home purchases as those who are selling their homes want to know that the potential buyer is serious about the property and will follow through on the offer that is made.

What are you Looking for in a Home?

The next item on your checklist once financial aspects are taken care of, is what are you looking for when it comes to a home? For example:

— Is there a certain neighbourhood that you are looking to move into? What type of feel do you want in the neighbourhood that you do choose? This can help to narrow down locations for the home of your dreams.

— Do you want to be close to certain main roads for accessing work easily? Do you have issues with travelling more than 20 minutes to get to your job? Know what you are willing to give up and refuse to live without.

— Do you have several bedrooms that are a must-have? For example, many people know that they must have a personal office in their home if they are working from their home, so this is a must-have, not just a want.

— Are there any housing amenities that are must-haves? Or those that you simply do not want? Do you want a backyard that is ready to go? Or maybe you are okay with a backyard that you have to make into what you desire.

For those who are having trouble with answering these questions, they are going to find that one of the easiest ways to do this is to envision yourself in a home. Look around, what feel does this home have? What are the characteristics that make you feel at home? You can then relay this information to the real estate agent that you are working with to help narrow down what homes on the market may fit these qualities.

You may also want to consider your future plans. There are those people who decide to buy their first home with the intentions of moving again in a few years once they decide to start a family. Others decide to purchase a home that is going to fit into their future plans. Of course, which course of action you take is going to greatly depend on what type of budget you have for your home and the like.

Why You Need a Realtor

Be sure that you are working with a REALTOR® on finding a home that fits all your requirements. A realtor is going to provide you with knowledge of the market and may even show you homes that you are not even aware of as being for sale on the market. Do not try to go at this home buying process on your own, especially when this is your first time. Realtors® are accustomed to working with those who first-time buyers are, and they can answer questions you may have, along with answering those that you had not thought to ask about yet.

A few tips on finding a realtor to work with:

• Be sure that you are comfortable with him or her
• Find someone that is ready to help you since you are a first-time homebuyer
• You want a guide in the realtor so that he or she can guide you on what the best option would be

Buying a home for the first time can be nerve-racking, but it can be exhilarating as well. The key to buying a first-time home is to be prepared, know what you want and know what you can afford to pay. Knowing these aspects makes the process much easier and less stressful, and working with a professional is going to help out tremendously. Contact us today!

For those who have purchased their first home, they may have thought that the process of buying their home was one of the most difficult that they have ever done. However, selling your first home can pose its own stresses and be an issue. There are tons of mistakes that can happen when selling your first home that can come back to haunt you later. For example, if you sell your home at a lower rate than what you should, you may lose money in the deal. Other people may find that they made a mistake in selling their first home too soon before they had found a new home to move into. The mistakes that can be made are endless.

However, for those who are selling their first home, knowing what mistakes that are out there, can help you to avoid these later!

Mistake 1: Selling Your Home Before You Are Truly Ready

There are several people who simply put their home on the market before they are ready. If you are not ready to do this, you are not going to be happy with any offers that you may get. In addition, you may unconsciously sabotage the deal when any buyer shows an interest. Be sure to sit down and talk with the family about selling a home and be sure that you are in the right mindset.

Mistake 2: Entering the Housing Marketing Blindly

Is the market low right now or high? If you have no idea of what is going on the real estate market, then you have no business putting your home up on the market just yet. You need to know what is going on, so you have expectations that are realistic. Know what type of area that you are living in- whether this is in high demand or you can expect to sit on your listing for a while.

Mistake 3: Going at This Sale “By-Owner”

Many people think that they can make more profit if they sell the home themselves. However, for those who are first time sellers, going at this on your own could be a huge issue. You may find it impossible to get the home sold and you may have no idea what you should be doing to get your home seen by as many people as possible. It is always best to work with a professional who knows what they are doing.

Mistake 4: Hiring the Wrong Realtor®

When you are looking for a Realtor®, be sure that you trust your gut instincts. Too many times first time home sellers go with the realtor that looks great on paper yet is not a fit for them. Do not forget to trust your feelings. Find the right realtor!

Mistake 5: Hiring a Realtor® as a Personal Favour

Too many first time sellers are bullied or coerced into choosing a realtor that the family may know or someone who is a close friend. Remember, when it comes to working in real estate, you cannot let your personal feelings about someone be the main reason that you choose them. You want to choose the realtor that is going to be looking at your best interest and who has the knowledge to get your home sold.

Mistake 6: Over Customizing the Home

One of the biggest tips that you hear when selling a home is that you should try to make changes in your home that are going to make it more appealing to the buyers. However, over customizing a home is just as bad as trying to sell a home that needs a ton of work. Remember, when it comes to customization of your home, what you put into the renovation does not mean that this is going to increase your asking price of the home. Be sure to stick to those customizations that will pay off in the long run, do not overdo it and end up losing a ton of money when the house is sold.

Mistake 7: Pricing Based on Profit

Pricing a home is a tricky decision. You want to get more out of your home than you owe since you want to make some profit. However, you should never price your home on what type of profit that you want to make. Remember that buyers often do not pay the asking price that you list. You need to look at homes that have sold in the area that are comparable to what you have and make your price based on this information.

Mistake 8: Letting your Emotions Rule your Thinking

It can be easy to let your emotions get the best of you. Your home is where you have had some great memories and events. However, remember that buyers are not going to buy based on your sentimental attachment to the home. Our home is a commodity that is for sale, nothing more.

Mistake 9: Not Disclosing the Problems or History of the Home

Never keep the history of a home a secret. This can come back and hurt you later. Be sure to be open and honest about any major repairs that have been made in the home so that potential buyers can see your honesty up front.

Mistake 10: Trying to Sell Your Home Before the Home is Ready

You may be eager to sell your home, but is the home ready? Too many people put their homes on the market when they have not cleaned the home, decluttered or the like. This can make it harder to sell. And when your home is not ready for the market, you may have it sitting on the market for several months before you get it sold. The market is competitive, and you need to make sure that your home is sticking out to potential buyers, do not put this on the market before you are ready.

Remember, working with a real estate agent can help you to avoid many of the mistakes that first-time sellers make! Contact us today to help you get started out right selling your home …