If you were born somewhere between 1980 and 1998, you are a part of the Millennial generation. Since you were born with the Internet practically at your fingertips, it only makes sense to say you live in a research-driven world.
Today, Millennials make up the largest group of home buyers and are powering the modern housing market. If homeownership is a part of your Canadian dream, here are seven tips to help you have a better idea of what it takes to buy your first home.
When you're ready to make the plunge into buying your first home, I can walk with you through the home-buying process. We will research available financial programs for first-time home buyers, discuss the mortgage application and approval processes, talk about what happens after you have a contract in place, learn about closing costs…the list goes on and on.
Get pre-approved for a mortgage.
Before you start your home search, you need to know your budget. The pre-approval process will help you do this. While the pre-approval process gives you an idea of how much home you can afford, it is not the same as loan approval. It’s a quick review of your income and expenses and an estimate of what the lender would be willing to loan you. Loan approval requires documentation (paycheck stubs, tax returns, bank statements, home appraisals), and that all happens once you have a contract in place, so get your documents together.
Decide where you want to live.
Do you want a condo or single-family home? We can talk about different neighborhoods and decide which one fits best with your lifestyle.
Don’t expect to get everything you want.
Studies show that most people stay in a home between six and nine years. It stands to reason you may buy several homes in your lifetime. Buy what you can afford and what works for you now (and possibly for the next few years to come).
Lenders are in the business of lending money. You may technically be able to afford a more expensive home, but that might mean you never go on vacation (or even out to dinner).
If you’re handy, buy something that needs work. If not, forego the fixer-upper. It’s not as easy as it looks on TV unless you have a big budget for contractors.
Get a home inspection.
An inspection should uncover foundation problems, water damage, and big-ticket electrical or plumbing issues that you just won’t find on a walk through.
Contact me when you're ready to start the search for your first home.