Top 5 Tips for First Time Home Buyers
First off congrats on making the decision to get into home ownership. Almost all great wealth is built on a foundation of Real Estate. Being a first time home buyer can be very daunting. There are so many aspects to the process that need to be taken into consideration. Do not fear, read these top 5 tips and they should make the whole process a whole lot easier and less stressful — Remember, real estate is a process, not an event.
Number 1
Get your mortgage pre approval in place before physically viewing properties. It is never too early to start a conversation with a mortgage broker. Do not trust the online Mortgage Calculators. These can be extremely misleading and can cause a lot of stress and frustration. It will not cost you anything but a 30min phone call to get some very valuable information. Call someone today if you’re thinking.
Number 2
Have your deposit money ready. A deposit is a portion of your down payment that is held in trust by the Listing Brokerage. On closing it is transferred to the lawyers as part of your down payment. When a Seller accepts your offer, you will have 24 hours to transfer this amount to the brokerage. If funds are tied up in investments or in an online banking system, make sure you’ll be able to access them in a timely manner. Deposit amounts will change from listing to listing, however your Realtor should help inform you the common deposit amounts in your target price range.
Number 3
Do not look for the perfect 10 out of 10 home. It does not exist. We put an offer on anything ranging from a 6 to a 9. Your tastes in renovations and decorating will turn that house into a 10 and make it home. Focus on the attributes of the home that you’re unable to change. Location, layout, and style of home are all characteristics that are incredibly difficult to change. The key in this market is to start putting offers in as soon as you can. It’s very uncommon that your first, second or even third offer will be the winning offer in the bidding wars we’re experiencing in the Waterloo Region.
Number 4
Don’t be scared to be aggressive. With the market we’re experiencing the aggressive buyers are the ones that are winning. This doesn't mean picking numbers out of thin air and submitting offers. This means making the sacrifices to see homes sooner than later, trying bully offers, and having all your ducks in a row so you can submit firm offers. The sooner you’re able to get an accepted offer, the more equity you will earn over time. Your realtor should be just as aggressive if not more so than you.
Number 5
Hire a Real Estate Agent. I cannot stress this enough. If you were in the middle of a heated divource, you would remain unrepresented and take advice and recommendations from your ex-wife's lawyer!!! Real Estate is like being in that divorce and having your lawyer paid for by the ex wife!!!
Buyer agents get paid by the Sellers to represent your best interests! Not only are they going to provide invaluable information and advice, a good one will have the relationships necessary to swing the advantage in your favour during the bidding process. You can’t replace this. Interview a few and find the one that you get along with and also produces results.
I hope these tips have helped and given you a few things to think about and work towards. Remember this is going to be a stressful process. It doesn’t get easier when buying your 4th or 5th home either. But one thing remains true. Do these 5 things and you’ll look back 6 months after receiving your keys and say this is the best thing you’ve ever done.
Good luck out there!
