So you are buying your very first home. This milestone in your life is thrilling and exciting but can also be stressful, disappointing and exhausting. And because this is your first home, we’re certain you would want it to be perfect for you in every way. That means you have to brush up your knowledge on home buying to make sure that you are moving in the right place and you’re not wasting precious time in paying for your first time home buyer mortgage.
7 Crucial Things to Consider for First Time Home Buyer Mortgage Calgary
Before embarking on your home buying quest, take a moment to consider the following critical things:
1. House Type
What sort of house do you see yourself and your family living in for the next decade or so? Is there a particular architectural design you fancy? Residential properties run the gamut. You have the option of moving into a single family home, a condo unit, a townhouse or a high rise unit.
Keep in mind that you’ll be spending the rest of your life in this house. If you are single right now and have plans of marrying or having kids in the future, investing on a single family home could be the best option for you.
High rise units or condo units might not work for those with children or pets as it can be a hassle to take the elevator. However, these are great for people living alone as you can purchase a secured and guarded unit.
2. Move-in ready or Fixer Upper
Fixer uppers are generally cheaper when it comes to monthly mortgage rates. It’s also a great purchase if you are keen on having the house layout you want. However, getting the house to the way you want it to can cost some money and can consume a lot of time. Renovations are no joke as they can take months to finish. Hiring contractors can also get pricey.
Move-in ready homes are perfect for those who don’t want to deal with projects. The mortgage is more expensive but you can pretty much settle in after your real estate agent seals the deal with the seller.
3. Must-have list
We suggest having a must-have list that you don’t want to compromise over. It’s your first house so you deserve to have the things you’ve been dreaming of. Take a moment to list down the things you want to see in the house.
In the case of move-in ready homes, finding everything on your must-have list is impossible. Nothing short of a renovation can put everything you want in the house. Be prepared to make compromises and narrow down your options to the house that has the most from your must-have list.
Obviously, you’re going to have to think about your budget. You want that million-dollar house but do you actually qualify for its mortgage? Talk to a reputable lender for an assessment.
If you want to increase your chances of getting the best mortgage deals, hire a mortgage broker. A mortgage broker can step in and give you the best advice on the right mortgage range for your current financial status. This way, you can really get excellent mortgage deals without worrying that you won’t be able to afford it in the future.
5. Extra fees
That house may be under your budget but what about additional fees? Some houses come with HOA fees. HOA fees can be exorbitant especially if the house is located in a popular and posh neighbourhood.
If it’s an old home, you might also want to pay for an initial inspection to make sure the house is in great condition. Unexpected electrical, molds and plumbing issues can be pricey and you don’t want these to bite you in the future.
7. Do you need a real estate agent?
First time home buyers might feel overwhelmed with the tasks of buying a new home so hiring a real estate agent lessens the burden. The agent can show you different house options suitable for your needs and can give you sound advice on the best price you can offer to get the house you want.
You will be dealing with monthly mortgage fees until you have successfully paid them off. This is why it is imperative that you make sure the mortgage you are paying really is the best one for the house you have chosen. You don’t want to overspend on a house.
Find a good mortgage broker who can walk you through the process of calculating your mortgage and getting you the best mortgage deals.