It’s been a while since you started wanting to buy a house, and you have managed to save great amount of money for your down payment. Now you are thinking that buying a home could be a right decision for you. But are you really want to be a homeowner? or you simply allured by the idea of having your own place close to your work and your favorite coffee shop?
When it comes to homeownership the first question you should always ask yourself is, what is my GOAL? Are you considering a home as a temporary option, or are you looking for a longer commitment, like a place that you will plan to stay in for a while? It is always good to think ahead to the future, can help you better determine your objectives.
You might even think of home as some sort of security, having a roof over your head and gathering a place for friends and family. Or a place that you can save money overtime by purchasing. While it could be combine of everything, but you also need to consider your home is also an investment. For each month you make your mortgage payment, or your home value rises.
Your second question should be, do I have enough savings?
Purchasing a home will cost you some type of money such as; down payment, property taxes, homeowners insurance, land transfer fee (you might qualify under a First Time Home-Buyer program or Grants), legal fees, appraisal fee. Typically, home buyers will pay between 2 to 5 percent of the purchase price of their home in closing fees. So, you have to make sure you have saved enough money for the purchase.
The third question, Can I qualify for a mortgage?
It always good to know how much you can afford before looking to buy a home. One of the first steps to buying a house is to get pre-approved for a mortgage from the bank. This will help you understand exactly how much money you can expect to need on hand, which can go a long way in determining if you’re in a position to purchase a home for the first time.
Inspection phase, money deposit, appraisal, mortgage approval… these are some of the steps that you will encounter throughout the process of buying your first home. It’s very important that you understand the process of buying a home, before getting involved. If you don’t have any idea about the process of buying your first home, discussing with an experience real estate agent who you can trust is a great way to educate yourself on the process.