Just the thought of buying your first home is enough to make you feel anxious and stressed. At LJM Developments, we understand: purchasing your first home is one of the biggest purchases of your life and shouldn’t be taken lightly. Still, the purchase of a home is a great investment opportunity – not to mention the pride that comes with owning your own home. If you’re tired of renting and you know it’s the right time to invest in Hamilton real estate, take a look at a few of our best tips for first time home buyers.
Know your finances
Before you even think about searching for potential homes for purchase, learn the details of your finances such as your annual income and how much you pay in bills. This is where a good mortgage broker will come in handy, as they can help you to determine how much you can realistically afford to spend on a mortgage every month. Once you have a general idea, learn to budget appropriately. This will help you to ease into home ownership and allow you to save a few extra bucks if you need additional money for things like a down payment.
Get pre-approved ASAP
If you know that you can realistically afford a home in the Hamilton real estate market, get pre-approved as soon as possible. Not only does this set you up for the next steps of the home buying process, it also tells home sellers that you are serious about buying and have the means to purchase a home – in other words, it lets all parties know that you are not wasting anyone’s time.
Understand closing costs
Many first time home buyers completely forget about paying closing costs. If you’re going into the process blindly, it’s easy to overlook this part of the buying process. These costs include hiring an attorney that specializes in real estate law to close the deal as well as hiring home inspections, appraisers, etc. In some instances, these costs can be negotiated; even so, go into the process expecting to pay them. Ask your realtor how much you can expect to pay in closing costs and budget accordingly.
Drive around neighbourhoods
Whether you want to live in a condo or another type of housing, drive around neighbourhoods to look at the Hamilton real estate for sale; get a feel for the vibe of each neighbourhood and choose certain neighbourhoods where you would like to live. When buying your first home, the price isn’t the only thing to consider: the location, nearby amenities, ease of using public transportation/driving, and beyond should all be taken into careful consideration. After all, it doesn’t matter how good of a deal you get on you first home if you’re not happy living there!
Don’t be afraid to walk away
If you go choose a home only to learn that you’ve made a mistake, never feel pressured to go through with the sale! It doesn’t matter how deep you are in the process (though before you commit to buying a home, you need to know if it’s right for you). As stated earlier, buying a home is one of the most important purchases you will ever make: if a home doesn’t feel like a suitable purchase, do not be afraid to walk away. Speak to your realtor and explain the situation, and take the appropriate measures to walk back your offer.
We’ll repeat it once more: never settle for a home! Just because you are ready to purchase your first home and you wish that it would be done sooner rather than later, it doesn’t mean that you should purchase any home that’s in a competitive price range among the other Hamilton real estate available first, and technically looks good and sound. If the home doesn’t feel right, don’t purchase it; look elsewhere and find something that’s perfect for you. Patience is key when buying your first home: while you want the process to be over and moved into your new place, it’s crucial that you take the process slowly and find the right home for you.