We know that purchasing your first home can be overwhelming. You may not know where to start so we summarized an easy guide for you.
1) Gather your team! It really does take a village
There are numerous moving parts involved in a real estate transaction. Add in the fact that it can be an emotional time for sellers and buyers and the process can become overwhelming. Don’t worry, stay calm, you got this.
First, find a mortgage lender who can pre-approve you and tell you the mortgage amount you are eligible for. Once you know that number, you can start your search. The real estate commission is typically paid by the seller so it works in your best interest to hire a buyer’s agent to represent you. Yes, at no cost to you. Then line up an attorney and a property inspector and your team is ready to roll. Make sure to do your due diligence and interview all the professionals you hire to ensure you find the right team. Remember, communication is key. It helps to connect your attorney, lender and agent with each other and ensure that everyone communicates with each other when necessary.
2) Know what you want
The search process can last a few days or a few months. Once you find a home, it takes 30-60 business days to close on it. Typically it is best to narrow in on a list of features you must have and another list of features that you would like but are willing to compromise on. Shortlist 2-3
neighbourhoods at the very most in order to make the final decision making process easier. Remember, too many options can become confusing. Know how much you are willing to spend and set your maximum budget.
The clearer you are about your needs, the easier the home search will be!
3) It may be overwhelming but it is rewarding!
There are several costs associated with home ownership that you should be prepared for. Some of these are annual taxes, insurance and property maintenance. Your home doesn’t come with a live in super unfortunately so it is best to be mentally and financially prepared that home ownership is a responsibility. Buying your first home is so special, enjoy the process. Try not to get upset over the small stuff, because of the many moving parts, you may face some challenges but they will all be worth it in the end. Soon enough you will be creating wonderful memories with your friends and family in your new home!
In a world where marketing can be everything, it is easy to fall in love with a newly constructed home without seeing it. The beautiful model homes, tasteful staging, immaculate photography and renderings can sometimes be misleading. Here are five tips that may help you if you are planning to purchase new construction!
- Fact check
There is a difference between a newly constructed home and a redeveloped home.
Two questions you may want to ask are;
Is the foundation new?
Were any parts of the old structure used or was it completely torn down?
The answers to these will help you understand if the property is truly new construction and not a redevelopment. There is nothing wrong with purchasing a redevelopment, some renovated or redeveloped homes have strong bones and simply need a little love to look brand new.
- Who is the developer?
It’s a good idea to do your research and try to see previous projects developed by the developer or the sponsor. If you can look at homes they have previously built, it will help you assess and review the quality of construction and materials used.
- Read the fine print!
We always suggest hiring an attorney and asking them a lot of questions! Although you may not be legally required to hire an attorney, it is important to read the fine print and do your due diligence.
- Inspections are key
We suggest that you hire a licensed property inspector to inspect the property and give you a full report. Review this report thoroughly and ask questions.
- Plan ahead
A lot goes into completing a new construction project. There are multiple inspections and certifications that developers need to complete before you can close and move in. It is not a bad idea to line up temporary living arrangements if your lease is ending or you are selling a home while relying on the set-closing date. You may want to speak with your mortgage lender about a long rate lock expiration so you aren’t stuck paying additional fees in case of a delay.