You have been watching your credit grow while saving for a down payment to purchase your first home. to help you achieve the dream, I came up with this step guide to homeownership in 2020. This simple guide to owning your first home will help you stop feeling as if you are wading through a jumble when it comes to owning a new home in Toronto.
1. Prepare to buy your first home
The initial thing to do is to make sure you have decided where you want to live. Are you attracted to an urban lifestyle or you prefer living in a small town? Deciding where you want to live will help in making important home purchasing decisions.
As part of preparing to buy your first home, it is imperative that you decide the type of property to buy. Do you prefer a single-family residential home or a Duplex? A townhouse or a condo? Either of these options can be suitable for you.
2. Plan your Finances
An important aspect of homeownership is your finances. Remember to set up a savings account dedicated to purchasing your first home. For mortgage lenders to consider your application, they want to look at your credit score. Therefore, make sure you are paying debts on time and clearing bills as they fall due.
As part of planning your finances, it is important that you budget the amount at which you will purchase the property. Consider the cost of property maintenance and make sure you can afford to repay the mortgage.
Remember that you will be required to repay the mortgage. Therefore, ensure that you have an emergency fund, which you can use during that time.
3. Apply for Mortgage Pre Approval
Mortgage pre-approval gives you the idea of how much you can afford when buying a home. Therefore, it is important that you apply for the preapproval in order to help you through budgeting for your new home.
Having the preapproval letter lets the home sellers see that you are a serious homebuyer. Therefore, you stand a better chance of being listened to when it comes to negotiations. Remember that the preapproval amount may be higher than what you can afford to repay. This is given that you still have other financial commitments. In that regard, make sure your mortgage amount does not go beyond the price you had budgeted to spend on buying a new home in Toronto.
4. Find a Realtor®
Hire an educated and registered Realtor® near you. some new homebuyers do not see the importance of hiring a real estate agent. Therefore, they choose to soldier on alone and end up making regrettable mistakes. Remember that you are purchasing a property where you and your family will most likely live for long.
Therefore, we do not have room for mistakes. Ensure that you explore the available options and choose the best Real estate agent within the locality you intend to purchase a property. Therefore, if you intend to buy a home within the wide GTA, Find an experienced real estate agent online, who serves the GTA area.
An experienced buyer’s agent in Toronto will help you through the cumbersome process of owning a property. This includes finding a home on sale within the area you intend to purchase while making sure that the property meets your expectations.
5. Attend open House
Your real estate agent will invite you for the next open house event. Therefore, the purpose to attend for an opportunity to view the various options available. Moreover, attending an open house is an important step as you get to meet other buyers and sharing ideas with them. Therefore, when you tour the property, look at the different features.
6. Make an offer
Your REALTOR® can help you come up with a strategy and prepare a fair offer that is based on their knowledge and experience. Before making the offer, take the time to research the current market rates. This helps to ensure you do not end up underquoting or overquoting. Remember to consider your initial impressions of the home, and the observations made during the open house event. Generally, 24 to 48 hours is customary to accept or reject the offer.
7. Get a Home Inspection
Ensure a successful home inspection has been done. Your REALTOR can arrange for the home inspection within the days of the acceptance. It is recommended that you have the property inspected by a qualified professional.
8.Close the Purchase
At this point, you are on the home stretch. All that waits is closing the deal. Your REALTOR® will help you through the legwork. This stage involves various things including:
- Ensuring a satisfactory agreement
- Purchasing of homeowners insurance
- Contacting your lender to finalize mortgage documents
- Arranging for connection of utilities and switching to your name
- Meeting your lawyer for agreement signing
Therefore, you are aware of the things that need to be done when it comes to purchasing your first home. Consider hiring a qualified and experienced REALTOR® near you.
Primo Agents provide homebuyer’s access to the best REALTORS®. Since only the top real estate agents are included in our network, you can be sure that each one will be able to deliver top-notch, quality service and will satisfy all your real estate needs.
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