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Few things in life compare to the sense of pride you feel when you purchase your first home—but the process itself can seem a little overwhelming. Buying a home is the biggest financial decision you will make in your life. It’s much more than looking at bricks and mortar.
Knowing what to do—and what not to do—during the home-buying process can make the experience a lot more enjoyable. Here are a few things to consider if you’re preparing to buy your first home:
Do: Get Pre-Approved
Securing pre-approval is an important first step in the home-buying process. Why? It saves you from the heartbreak involved when falling for a house you cannot afford. Your pre-approval will tell you how much a lender is willing to lend you and at what terms (based on your income and debts), giving you a more exact budget for house hunting. Plus, having a pre-approval letter can give you an upper hand over buyers who haven’t taken this step.
Don’t: Expect to Find Your Forever Home
They call it a “starter home” for a reason. On average, most people only spend five to seven years in their first home. Keep an open mind when you’re house shopping—not everything has to be 100% as you imagined it would be. Part of the fun of buying your first home is making it your own and trying your hand at some DIY renovations.
Do: Budget for Closing Costs
This is a tip often overlooked by first-time buyers, often because they are so focused on saving enough for their down payment. Closing costs are one-time fees associated with the sale of a home. You should try to set aside roughly three percent of your home’s purchase price to cover closing costs.
Don’t: Stretch Yourself Too Thin
No one wants to be house poor—especially after buying your first home. We know how exciting it can be to look at houses on the top-end of your budget. But, just because a bank approves you for a certain amount, doesn’t mean you have to spend it all.
Do: Talk to a Mortgage Broker
Most people still immediately think of going to their bank when it comes time to apply for a mortgage, but first-time buyers especially will benefit from turning to a mortgage broker instead. Not only can we beat the rates at the bank, but we also provide a personalized service, ensuring you feel well advised and supported every step of the way. We’ve even been able to secure financing for clients who were told by their bank that they wouldn’t be in a position to buy for another four or five years.
Have questions about your future in home ownership? We’d be happy to discuss your options with you. Get started today by filling out our quick and easy online mortgage application, or connect with us and we can walk you through it.
If you have a comment about this blog post, have questions about the different mortgage types we provide or wish to ask any other questions about how to get a mortgage from CVE Mortgage Group, please feel free to contact us