Buying your first home can be an overwhelming experience. From all the paperwork to the nitty gritty details, your stress level and questions can pile up quickly. These five steps will help get you started in the home buying process.
Ask Tough Questions About Your Budget
An important first step before buying your first home is establishing your budget. This process requires more than a visit to your bank. You’ll want to sit down and ask tough questions about what kind of lifestyle you’ll want as well. Factor in things like; monthly expenses, your savings plan, travel desires and leisure activities.
Get Pre-Approved for Your Mortgage
Before you start house hunting, go to your bank and get pre-approved for your mortgage. Doing so will make your home buying process move more quickly and smoothly.
Aim for a 20% Down Payment
When you’re putting a down payment on your first home, experts recommend placing at least 20 per cent down in order to qualify for a conventional mortgage, giving you the benefit of affordability and comfortable living.
Keep Closing Costs in Mind
Closing costs are dues paid at the end of a real estate transaction. These costs add up and can range from 1.4 to 3.6 per cent of the total cost of your home. A brief snapshot of your closing costs will include; legal fees, property transfer tax, interest adjustment, property insurance and other standard fees.
Enjoy The Process
Don’t forget to enjoy the home buying process when you can. Buying your first home can be daunting but it’s also a very exciting time and something that only happens once. Find joy in this new phase of your life and the smart investment you’re making.
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