How Not to Get Screwed as a First-time Homebuyer?

Posted On January 19, 2022

Looking for a home for sale for the first time? There must be a thousand questions arising in your mind if you are a first-time homebuyer. Creating strategies, planning and settling down on a budget, applying for a mortgage, etc., there are endless things one has to look at, before buying a house.

Firstly, it is important to understand whether you are actually ready to buy a house or not. Taking account of your financial stability and considering the worst-case scenarios like losing your job or falling ill, is vital. Being a first-time home buyer can be exhausting but it is equally exciting and rewarding as well.

If you plan and follow the right steps, and consult a professional, then you can land the house of your dreams easily. Those who are looking for a home for sale or townhouse, detached houses or semi-detached houses, should check out property listings at www.savemax.com . Here are some tips for first-time home buyers.

Affording the House

We all would love to buy big mansions but keeping in touch with reality and your income is extremely important. You should figure out the mortgage that you can afford with your sources of income. According to the Canada Mortgage and Housing Corporation, the housing costs must not exceed 32% of your before-tax monthly income.

Find out the gross debt service ratio to figure out how much mortgage you can afford. Apart from mortgage payments, several aspects like property taxes and basic utilities will also have to be taken into account. Plus, the monthly debt should not be more than 40% of the gross monthly income of an individual.

Down Payment

Different regions have various policies for the down payment of a house. Saving money for some years before you plan to buy a house is a good decision. For additional security, it is good to have at least 20% of the total cost of the house for a down payment.

The smaller your down payment, the greater will be the premiums. Your monthly mortgage payments will also increase accordingly. Smaller monthly payments will make finances flow easily. If you are looking for a suitable home for sale, then our site has some great properties that can interest you.

Credit Score

A credit score reflects your financial habits and spending patterns. Maintaining a good credit score will ensure that you get pre-approval on your mortgage easily. No matter where you are borrowing the money, the lenders will run a check on your credit score.

Know your score first to see if this is the right time to buy a house. If not, then you should wait and maintain a high score before applying for a mortgage. Moreover, credit scores determine the rates at which you will get the mortgage. Some lenders also have a fixed minimum credit score that you must have to get the mortgage approval.

Planning All the Costs

The cost of the house for sale is not the only amount you will require. You have to consider the costs of closing the deal, the fee of the property lawyer, taxes, and maintenance. Apart from the down payment, you should have at least 4% of the price of the home to cover the costs of inspection, title insurance, legal fees, and much more.

Alongside, you will need a home insurance plan before you move into your house. Look for customizable plans that best suit you and your requirements. If you are looking at a house to sell, then explore some amazing choices at www.savemax.com

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First Time Homebuyer Benefits

The Home Buyer’s Plan, the First time Home Buyer Incentive, and the GST/HST housing rebate are a few programs that specifically help first-time buyers. Always apply for mortgage pre-approval to understand how much of the budget the lender will approve. Explore the many houses for sale on this site and narrow down some incredible options.

You may also like: Types Of Properties To Buy For First Time Homebuyers

Final Words

These are some points that you must consider before you start looking for a house for sale. Create a detailed plan and ensure you have workable solutions for every step. Hire an expert who can assist you in making informed decisions all along the way. Start planning for the future and consider all possibilities for securing a stable future.