Buying a new home is a big financial commitment, but it’s an even bigger deal if you’re buying your first home. Settling down is definitely a milestone that’s worth celebrating, and there are a bunch of things you need to know before you close the deal and pop the champagne.
Many first-time homebuyers make the mistake of not doing adequate research before they sign the dotted line. And when this happens, they get surprised about all the extra expenses, maintenance, mortgage options, monthly payments, and other fees that can easily double the price of your budget.
Fortunately, all you need to do is to speak to a local mortgage agent to find the best mortgage option based on your financial stability and have enough funds to cover your needs. Choosing the best mortgage can help you in the long run, allowing you to pay monthly fees and paying off loans without any hassle.
If you’re ready to close the deal on your dream abode, it pays to know a few tips and tricks when buying a home so you can put yourself in a good position as a first-time homebuyer. Let’s take a look!
1. Closing a Deal Isn’t Cheap
When you purchase a home, there are more financial obligations you need to be aware of besides the listing price or the seller’s offer. With that being said, real estate agents and local mortgage agents suggest that you budget at least three to four per cent of the purchase price since you need to pay off your closing costs.
Seeing as closing costs can also be a huge sum of money, you should include this in your budget so you won’t be startled when you need to pay upfront.
2. Know Your Contract’s Subjects
When you read through your contract, you’ll see a long list of subjects. These are important points that tell you what you can and cannot do at the moment. On a contract of purchase or sale, you’ll often find the following:
- Subject to obtaining satisfactory financing
- Subject to receiving and approving an inspection report
- Subject to receiving and approving a property disclosure statement
- Subject to receiving and approving title search
- Subject to receiving and approving all strata data
Although these are the most commonly used “subjects,” you can be subject to anything you like. However, don’t expect sellers to adhere to your requests, especially if what you want is unreasonable.
3. Look For the Right Mortgage Options
As mentioned earlier, buying a home is a massive financial commitment. Most often than not, first-time home buyers need to get a mortgage to pay off a home. With so much money on the line, it’s best to speak to the best local mortgage agent to ensure that you choose a mortgage option that fits your lifestyle and financial capabilities.
When looking for a mortgage option, shop around and compare interest rates and terms. These are two crucial factors you need to consider since you’ll be paying your mortgage monthly and in the long term.
4. Explore Your Neighborhood
You probably fell in love with the town while you were browsing for homes online. But remember — these pictures were posted to lure potential homebuyers, so in some cases, they may not be the same in real life. Because of this, taking a weekend trip to the town may be a good idea to explore the area before you commit to the location.
With that being said, partnering up with a reliable real estate agent is key to ensuring that you’re selecting a home in an ideal location best fit for your budget and lifestyle.
The Bottom Line: First-Time Home Buyers Need to Consider a Wave of Things Before Signing the Dotted Line
Besides the home maintenance expenses and home improvements, there are some of the things you need to consider before you start buying a home. It pays to be financially and emotionally prepared when you take on this endeavour.
Partnering up with a credible local mortgage agent is key to a smooth, hassle-free first-time homebuying experience.
How Can We Help You?
Buying a home is no easy feat; in fact, there are many legalities and financial responsibilities you need to be aware of. Fortunately, Ottawa Mortgage Services is here to help you. We offer tailored solutions for first-time home buyers from beginning to end of the mortgage process. If you’re looking for a reputable mortgage agent in Ottawa, get in touch today!