Our Top Tips for First Time Home Buyers Entering the Housing Market in 2019
Your hard work and dedication to saving has paid off and it’s finally time to enter the housing market! Purchasing your first home is an exciting process and, with a lot of preparation beforehand, it can also be a simple process. Enter the housing market prepared for anything that comes your way with help from our top tips for entering the housing market in 2019.
As a first time home buyer, a pre-approval is an excellent way to gain the upper hand when negotiations begin. A pre-approval lets the realtor know that you have been given a loan and are financially stable enough to go ahead with the process. It will also keep you within your budget when it comes time to decide on which home you will purchase. Overall, getting a pre-approval is a financially smart choice, and it is one of the top ways to break into the housing market.
Purchasing a home for the first time requires a lot of financial responsibility. Without proof of an acceptable credit score, a lender will not approve you for a mortgage. Before you decide to break into the housing market, work at building and maintaining a good credit level. This can be accomplished by paying your credit card bills on time, keeping your loans at a minimum, and ensuring that you do not max out on your card. If you take these precautions, over time you will have a credit rating that will allow you to be approved for a mortgage.
Once you have set aside a down payment, there will be other fees that you will need to be prepared for. On average, Canadians should have approximately 1.5% of the purchase price set aside for closing fees. This will cover legal fees, home inspection, and moving costs. Having a little bit of extra money set aside is an important aspect of purchasing a new home and will save you from running into financial trouble later on.
An important factor in purchasing a home for the first time is finding a mortgage broker or bank that will suit your lifestyle and needs. When looking into getting an approval, it is important that you explore your options, and don’t just settle for the first option you find. Every mortgage broker and bank is different, and exploring your options will ensure that you find the one with the best rate and the best payment plan to suit you and your needs.
Invest in Homeowner’s Insurance
During the process of purchasing your first home, you will be required to provide proof of homeowner’s insurance in order to close the deal. Homeowner’s insurance is not only a part of the process of purchasing a home, it is also the perfect way to ensure that you are covered in the event that there is unexpected damage or an emergency on your property. It is a smart investment and being prepared with a policy before the closing date will make the process more efficient.
Planning ahead is a great way to make the process of purchasing a home feel less overwhelming. Saving extra funds, exploring your mortgage options, and maintaining an acceptable credit rating are only some of the steps you should take to help you break into the housing market in 2019. For more information, visit the Caliber Homes Blog.