November 3, 2020 • Buying
First Time Tips for New Home Buyers
By Kate Barker
Buying your first home? There are a lot of factors to consider. Here are 5 tips for new home buyers to get you started on your journey!
1) Get Pre-Approved!
A pre-approval will give you a budget so you can shop for what you can afford. Real estate agents, brokers and lenders all agree that a pre-approval is the best starting point when looking for a new home. While some websites provide an estimated pre-approval, it’s best to talk to a mortgage professional to make sure you’re getting an accurate number, with no surprises down the road!
2) Get a Real Estate Agent
A real estate agent is an essential asset when looking for a home. Real estate agents will be able to find homes that fit your budget, your style and your ideal neighbourhood. They also know the ins and outs of the home-buying process. Developing a working relationship with your agent is important as they help you navigate such a large purchase.
3) Consider a Mortgage Broker
There are a lot of factors that can affect a mortgage. From different lenders to different policies and even locking in best rates, a mortgage broker knows the details of financing a home. A mortgage broker can save you time, energy and money searching for the best mortgage for your financial situation. And as long as you’re qualifying, they’re totally free.
4) Get Together
In expensive markets like Canmore and Banff, it’s not uncommon for new home buyers to combine forces to buy their first home. A co-signer can ease the stress of buying a home by adding their name and credit history to your profile. This can help you get better rates for a lower purchase price. Banding together with friends to buy a home is also quite common. It can be a great way to get your first home and get your foot in the door of the real estate market.
5) Close with a Financing Condition
When it’s time to put in that offer, make sure to include a financing condition. This allows you a few extra days to get your finances in order, and to make sure your mortgage will cover the property you’re about to purchase. While a pre-approval process looks at you as a buyer, the mortgage process considers you and the property you’re buying. In rare cases, a lender may back out if a certain property is known to have major problems. With a financing condition on your purchase offer, you can back out penalty free if your mortgage won’t work.