Purchasing a home is one of the most important investments you can make. You should consider a range of factors when deciding on a property, such as location and price. If you are new to buying property, there are some things you will want to consider before taking the big step.
Check and strengthen your credit – Your credit report is a snapshot of your financial history that lenders and landlords review when you apply for a loan, apartment or other form of credit.
It includes information about your payment history, monthly minimum payments, balance and more. Your credit score is derived from this information and ranges from 300 to 850 points. A higher score means you’ve demonstrated positive repayment behaviour, which will lower the cost of borrowing money.
Know about First Time Home Buyer Incentives – It’s important to have a realistic idea of what your monthly payments will be. The rule of thumb when buying a house is that you should not spend more than twice your annual income on your mortgage, property taxes and insurance. First time home buyers should get as much information as possible before making such an important decision.
Know about other costs –
Closing Costs – The major cost in buying a home is the down payment. The higher your down payment, the smaller your monthly payment will be. In addition to putting 20% down, don’t forget to make a list of your closing costs and additional expenses before you sign on the dotted line.
Move-in expenses – Living in a new home can be fun, but it can also be expensive. Focus on the high-quality parts of the home: windows, floors and major appliances. Set aside some cash for immediate home repairs, upgrades and furnishings.
Are you ready to get into home ownership? Team Singh YYC can help you. As a team of experienced realtors, we can help you meet all the requirements and guide you through the process of buying a home that is right for you.
