Buying a home is a very exciting time. It does not matter if you are a first time home buyer or have moved several times a new home is a new beginning and a fresh start. It is easy to get caught up in the excitement and head out into the marketplace looking at any and all the available houses only to find that you are unprepared when you find a home that you love. Today I am sharing with you the first video in our home buying series, Helping You Finance Your Home. Watch the video or continue reading, I hope that you will find this information useful.
Where should you start? A good first step is to organize your finances. By doing this you can identify homes that you can afford and be ready to make a move when you find your dream home. For the purposes of shopping for a home your finances can be broken down into two main categories.
One time costs, these would include;
- Your down payment.
- Legal costs.
- Inspection fee.
- Ontario Land Transfer Tax.
- Moving Expenses
Budgeting and saving for these costs will allow you to complete your home purchase without any financial hardship.
Ongoing Monthly Expenses;
- Property Taxes.
- Condo fees if applicable.
- Lifestyle expenses.
Calculating and budgeting these costs will help you to decide what price range you should shop in so that you can afford your home and maintain the lifestyle that you are currently accustomed to. It will also give you the information needed to make the best choice from the many mortgage options available to you.
How do we use the information gained from the exercise above to choose a home? Here are 5 tips that may help;
- Have an accurate idea of your monthly lifestyle costs such as dining out, clothing and family activities.
- Set a price range or budget for your new home.
- Factor in external costs related to the areas and homes chosen. This would include items such as travel expenses, day care costs etc…
- Keep a record or cost sheet for homes that you are interested in.
- Use the cost sheets for every home that you like and make comparisons.
Making the correct property and financing decisions from the many options available can save you money now and in the years to come. To summarize the main points;
- Review you living expenses.
- Identify what you can afford while maintaining your current lifestyle.
- Create a template or record to track the costs related to potential homes.
- Get your finances in order and know what to expect.
- Consult a mortgage specialist and obtain a pre-approval. As your realtor I have a number of mortgage contacts that I can provide you with so that you can make an informed choice.
If you have any questions or need real estate advice please call my direct number at 519 590 6118 or email email@example.com.
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