A successful home buying experience is all about getting the necessary information from start to finish. The following summarizes the guidelines you need to take note of, especially if you are a first-time homebuyer. These will help you navigate the process, save money, and close the best possible deal.
Choose a reliable real estate agent
A montreal real estate agent will search the market for homes that can meet your needs. Agents will guide you through the negotiation and closing process. It is highly recommendable to get agent referrals from other recent home buyers that you know personally. Interview at least a few agents, and request proof of recent successful transactions. When speaking with potential agents, ask about how they help first-time homebuyers find the best match and how they plan to find that specific home.
Start saving early for future expenses
Here are the basic fees to consider when saving for a home:
Down payment: Your down payment requirement will depend on the type of house and the type of mortgage you choose and the lender itself. Some conventional loans provide first-time homebuyers with excellent credit allowance with as little as 3% down. But even a small down payment can be challenging to save, especially if this is your first time. For example, a 3% down payment on a $300,000 home is still $9,000. Use a free down payment calculator to make a goal, and then set up automatic monthly transfers from checking to savings to get started.
Closing costs: These are the fees and expenses you pay to finalize the transfer and mortgage. They typically range from 2% to 5% of the loan amount. You can ask the seller to pay a part of your closing costs, so you can save on some expenses, such as home inspections and other requirements.
Move-in expenses: You’ll need some actual cash after the home purchase. Prepare some money for the immediate home repairs, disinfection, upgrades, and furnishings.
Decide how much home you can afford
Think about how much you can safely spend on a house before starting to look for one. Calculating your monthly expenses can help with setting a price range based on your income, debt, down payment, credit score, and the living expenses of the neighborhood.
Look for the best mortgage option
There are many terms of mortgages available with varying down payment and eligibility. Most homebuyers choose a 30-year fixed-rate mortgage, which is paid off in 30 years and has an interest rate that stays the same. A 15-year loan typically has a lower and more practical interest rate than a 30-year mortgage, but the monthly payments are larger. So you need to assess things based on your current financial situation.
Buying a home can be really challenging for a first-time buyer. There are so many steps, tasks, and requirements, and you may feel stressed about making an expensive and long-term mistake. Follow the above guidelines to help find the best house that is right for you.