There is no better feeling than getting the keys to your dream home. The moment you set foot through the front door and realize it’s yours, it is an exhilarating feeling, you immediately start to plan how you will improve your property in the future. As the years pass by, every room in your house creates a lot of memories and milestones of the best years and the ones to forget. If you are looking for homes for sale in Brampton, Brampton apartments or need insights or tips in Brampton real estate, the below-mentioned tips will help you make a well-informed decision.
It is completely normal to feel overwhelmed and even anxious when you are looking to buy your first home. After all, it is one of the most significant financial decisions you will make in your lifetime. You may have saved up a lot of money for this special day, but such is life that certain unexpected moments can derail our plans and financial goals. Do you have to ask yourself if you have to wait for several years to save enough amount of money for a down payment? The answer is no, you can still purchase your dream home without needing to pay for a down payment. Unpredictable events like a global pandemic can make you reconsider your plans, but financial instruments like a no-money-down mortgage can be of major help. Ensure you select the right option, and pay the down payment on time. If you are not sure what is the down payment amount for the property, you can use a mortgage calculator, or the below-mentioned tips will make you understand everything you need to know about Brampton real estate.
#1 Ensure your finances are in order
One of the most important things you can do when looking to buy your first home is to ensure your finances are in place. To start, you will need to consult a lender and find out how much your pre-approved mortgage amount is. Many agents will choose not to work with a homebuyer if they have not consulted with a mortgage professional. In today’s real estate market, getting pre-approved for a mortgage has several financial benefits, such as understanding what property price range to look in; you do not want to search for properties that you know you cannot afford. It also lets you know if you have any issues with your credit report and score. Your credit score plays a vital role in whether your mortgage is approved or not. Other things to keep in mind to ensure your finances are in order is to determine how will you get your income, and how much have you saved for your first down payment. It is rare for first-time homebuyers to make a down payment of 20%, but that is how much you are expected to have if you want to avoid having to pay mortgage default insurance. Additionally, you also have the option to take out money from your Registered Retirement Savings Plan (RRSP) to pay for your down payment. If you are purchasing your first home with your partner, you can contribute to the down payment together.
#2 Find a reliable real estate agent
Even though it is not necessary to avail the services of a real estate agent to buy your first home, it is highly recommended if it is your first time deciding to buy a home. It helps to have an individual who is knowledgeable about the real estate market who can take the stress off your shoulders by handling all the necessary paperwork. A reliable real estate broker will have a sound understanding of the city and the neighbourhoods. They have the experience and expertise, including directing you in which areas and neighbourhoods to invest in based on your financial needs and lifestyle. They will also know which neighbourhoods will allow your investment to make a profit if you are looking to sell it in the future.
#3 Be mindful of your budget
The most important question that you will ask yourself is when buying a home for the first time is would I be able to afford the house based on what I currently earn, or if I haven’t been working in the last three months, or if I have recently lost my job, or are you stretching your finances too thin with this major financial investment.
#4 Keep an open mind
When deciding to purchase your first home, you must keep in mind that it will most likely it will not be your dream house. It should include all your needs and hopefully some of your wants. Do not stress about the aesthetics, remember, all the items in the property can be removed or replaced. From painting the walls to the colour of liking to replacing the wallpapers, plumbing, roofing etc. You can also add a renovation budget into your mortgage plan if you choose to purchase a home of minimal value.
We have seen the tips first-time homebuyers must keep in mind when purchasing a property. it is also important for them to know what to avoid doing as first time homebuyers:
#1 Do not assume that you will stay in that house forever
You must remember that not everything is 100% as you imagine. The first home is called a “starter home” for a reason.
#2 Don’t get too emotional with your first home
It is quite common with first-time homebuyers getting emotional over their purchase. Remember to keep your emotions in check and think with your head.
#3 Avoid making any big purchases before getting pre-approved for a mortgage
Do not make any splashy purchase like purchasing a new car or something else when until your mortgage is pre-approved. Also, do not forget about the closing costs. Try to keep up to 4% of the purchase price to cover it. Do not forget to also save money for a rainy day.
If you are looking for houses for sale in Brampton, homes for sale in Brampton or Brampton apartments as a first-time buyer, the above-mentioned tips should help you go about making a smart and well-informed purchase.