Being a first-time homebuyer anywhere is difficult, but first time homebuyers in Richmond Hill are playing a high-stakes game of real estate thanks to the high property values here in our city. The high price tags of homes here means mistakes can cost you tens of thousands in dollars over the long-term, which is why you need to get it right the first time.
To help first time homebuyers in Richmond Hill with a smooth and financially-sound, first-time home buying process in Richmond Hill we’ve put together our top 7 real estate tips:
1. Calculate All Homeowner and Real Estate Expenses BEFORE Looking
Once you’ve fallen in love with a home that is out of your price range it is hard to back track. So, calculate all the costs associated with buying a home, including property and land-transfer taxes, moving expenses, mortgage fees, mortgage payments, yearly maintenance costs, upgrade costs, homeowners’ insurance, legal fees, realtor fees, home-inspection fees, appraisal fees, etc. Owning a home is far more expensive than you think.
2. Try for 20% Down
If you take out a mortgage with less than 20% down then you will likely be forced to pay insurance on your mortgage—and that price tag is hefty! If you can’t do 20% down consider buying a more affordable home or taking money out of your RRSPs (you’re allowed to use up to $25,000).
3. Know Wants vs Needs
You won’t get everything you want in your first home (unless you have the money saved for the high-end home of your dreams), so know what is a deal breaker and what is a ‘nice-to-have’.
4. Maintain your Credit
Before going out and buying new furniture or appliances on credit, check with your Realtor to see if this could adversely affect your credit (which could cost you the mortgage you’ve pre-qualified for).
5. Get Pre-Approved for a Mortgage
This is a critical step before shopping for a home. It will help speed along the process while giving you a realistic home price that you can afford (although you always want to be a little under your pre-approved mortgage amount—to help with any additional money needed for surprising costs or new home items). When shopping for a mortgage look at various down payment, interest rates and payment schedule options.
6. Find a Home—Then Stop Looking
Buying real estate isn’t a perfect process, and if you keep looking at homes after you’ve purchased one there will inevitably be one that makes you second guess your choice—even if your new home is more ideal for you.
7. Ask About Rebates
Depending on when you buy your home, there may be tax rebates available for you as a first-time homebuyer. There also may be new governmental programs available, or eco-friendly home renovation rebates available.
To ensure that you, and other first time homebuyers in Richmond Hill, have a hiccup-less first-time home buying experience (and not transaction!)–call the Wan Team, and put our decades of experience to work for you.