Find Your Dream Home
Buying your first home can be an exciting and scary time! When done right, home ownership becomes an investment with solid financial reasons to support your decision.
The 8 Steps to Buying a Home
Decide to Buy
Buying your first home can be an exciting and scary time! When done right, home ownership becomes an investment with solid financial reasons — equity buildup, value appreciation and tax benefits.
- If you are paying rent, you can very likely afford to buy
- There is never a wrong time to buy the right house
- Can’t afford your dream home? The best way to get closer is to purchase your first home
- Lacking a substantial down payment or less than perfect credit? It won’t necessarily prevent you from buying
- It’s not as complicated as it seems — there are many experts to guide you
Hire Your Agent
You want to make sure you get the right person on your side! The typical real estate transaction involves at least two dozen separate individuals. Your agent will coordinate all professionals involved and act as your advocate.
7 Primary Roles of a Buyer’s Agent:
- Educates you about your market
- Analyzes your wants and needs
- Guides you to homes that fit your criteria
- Coordinates all involved professionals
- Negotiates on your behalf
- Checks paperwork and meets deadlines
- Solves any problems that may arise
Secure Financing
If you are a first-time home buyer and are nervous about making such a big commitment, you’re not alone. You will follow a simple process to secure your financing:
- Choose a mortgage agent or mortgage specialist
- Submit a mortgage application and get pre-approved
- Submit an accepted purchase offer to your lender
- Obtain funding at closing
Find Your Home
Finally! The fun part. Beginning with an assessment of your needs, wants, and values will help you find the perfect fit.
- What amenities would you like to be close to?
- How much space do you need?
- Which is more important: location or size?
- Would you be interested in a fixer-upper? A condo? New construction?
- How critical is home value appreciation?
- What features do you want vs. really need?
Make an Offer
Now that you’ve found your dream home, it’s best to set emotions aside as you make your offer. With a cool head and realistic perspective, your agent helps with three essential components:
- Price — must accurately reflect the real market value
- Terms — schedule of events, fixtures & chattels, deposit, conditions
- Conditions — remember the timelines and make certain all time frames are met
Perform Due Diligence
The property inspection can expose issues and help you know exactly what you are getting into. Don’t sweat the small stuff. The primary concern is structural damage.
If a big problem is detected, you may want to bring in a specialist to offer their opinion on whether or not you should proceed.
Close
Closing consists of a visit with your lawyer (title search, title insurance), and a final check of your credit and finance. Your pre-closing responsibilities:
- Stay in control of your finances
- Return all phone calls and paperwork on time
- Regularly communicate with your agent
- Confirm all documentation is in place
- Obtain certified funds for closing
- Conduct a final walk-through
Congratulations — you’re now officially a homeowner!
Protect Your Investment
Attention to your home’s maintenance needs is crucial to protect the long-term value of your investment. It’s best to keep up with cleaning and regular maintenance because fixing small repairs early can save you money later.
How Much Can You Afford?
Lenders decide how much you qualify for based on numbers and formulas, but they may not fully understand your lifestyle and spending habits.
In Canada, lenders use a Gross Debt Service (GDS) ratio to determine how much you qualify for. Your GDS should not exceed 32% of your gross monthly income, and your Total Debt Service Ratio should not exceed 40% of your total debt load. As home prices rise, some lenders have stretched this amount to 50%.
We suggest you don’t stretch your budget quite this much. It’s best to leave a little room for the unexpected. Your peace of mind, comfort level, and security matter most.
Creating a Wish List to Find Your Dream Home
To help you find your perfect fit, your real estate agent will want to know as much as possible about the features and amenities that are important to you. It’s best to separate your list into what you need and what you want.
Home Features
- Age — Do you prefer historic homes or newer properties?
- Style — Love ranches or bungalows? Let your realtor know
- Living space — How many bathrooms and bedrooms do you need?
- Layout — Open concept, traditional or formal?
- Square footage — How much space do you need?
- Extras — Is having an attic or finished basement important?
Amenities
- Home office or studio
- Playroom for kids
- Security system
- Sprinkler system
- Fireplace
- Pool or hot tub
- Patio or outdoor space
- In-law suite
How Do You Choose Your Location?
Where you buy your home will affect your lifestyle and the current and future value of your property. There are a few things you may want to consider:
- Urban, rural, or suburbs?
- Commute time
- School districts
- Proximity to hospitals, airports, restaurants, and shopping
- Access to highways or public transportation
- Types of recreation close by
- Length of time you plan to live in your home
8 Important Questions to Ask Your Realtor
- 01 Why did you become a real estate agent?
- 02 Why should I work with you?
- 03 What makes you stand out?
- 04 Can you describe the process you will use to help me find the right home?
- 05 What are the most common things that go wrong in a transaction? How would you handle them?
- 06 What mistakes do people make when buying their first home that I should avoid?
- 07 What other professionals do you recommend?
- 08 Do you have references or testimonials?
Let’s Find Your Perfect Home
Whether it’s your first home, your forever home, or your next investment — Andrée has the expertise and local knowledge to make it happen.