Tony knows that being a first-time home buyer is a daunting prospect. It is a time where you will have to navigate new experiences, requirements and making big decisions. However, Tony Mathrau is here to turn "daunting" into something to be celebrated. Here are 5 tips to help first-time home buyers through this milestone process.
1. The Importance of Pre-Approval
Getting pre-approved for a mortgage is arguably the most important part of the process of buying your first home. And many first-time home buyers start looking at homes before they ever sit down with a mortgage lender! Getting yourself pre-approved for a mortgage helps you in a number of different ways. Pre-approval helps you understand what you can afford, allows you to move quickly once you see a home you like, and in adding closing costs to the entirety of the experience.
Being preapproved also tells sellers that you're serious about buying a home and will be more likely to take any offer your make seriously.
2. Shop Around for Mortgages
A very common mistake for first-time home buyers is they do not do their due diligence in talking to a number of different mortgage providers. Getting a sense of all of the options available to you based on your down payment, credit score and history will help you evaluate what is a fair deal and what is less than you could get elsewhere.
By not speaking to multiple mortgage lenders and just going with the first one you meet with, you can potentially be leaving thousands of dollars on the table!
3. Brainstorming Your Wants and Needs
When it comes to purchasing your first home, everyone has different wants and needs. Brainstorming and creating a list of your desires and the things you can't live without will help to establish your priorities as your begin searching for homes. Keep this list on you and in mind every time you see a house and make notes of what boxes it checks.
The last thing you want during your home-purchasing process is to pass on a house that would have been a great fit because you weren't able to stop and think about what you need and what you can live without (or work towards adding yourself!).
4. Don't Lose Sight of The Neighbourhood
It can become very easy to get wrapped up in the wants and needs of your specific home. While the house is the place you will be living in, and your priorities there are incredibly important. It's also critical that, as a first-time home buyer, you don't neglect the neighbourhood your prospective home is a part of.
Your dream home may have everything you could possibly want, but if the area surrounding it isn't to your liking, doesn't offer access to the services your need, or is even dangerous, you will be miserable!
5. Negotiate With The Seller
When you find your dream home, one that checks all of your requirements and even has most of your desires, it can be tempting to throw in a large offer to make sure you are the one to get it. However, depending on the market you are buying in, it's important to stop and consider what money you could possibly save here. You may be able to negotiate for the seller to cover repairs you will have to conduct later, or a portion of the closing costs.
Even if you aren't able to negotiate significantly with the seller, taking a moment to evaluate the situation will help you to take proper stock of things.
Rushing into a purchase can often result in spending more than you are actually comfortable with and this process can help you determine whether the house is worth it or not.