Buying your first home can be the single most exciting experience you've had so far, but it can also be the most nerve-racking. There are a host of factors to consider, and overlooking some of them can cause headaches down the road. Here is a list of our DOs for buying your first home.
- Educate Yourself
Doing your research could potentially save you a ton of money and time. It's important to arm yourself with information. Find out things such as the average housing costs in the area you want to buy and the going mortgage rates. Calculate the monthly payments you can afford and would be comfortable making.
As a first time home buyer it's important to assess the situation armed with information and leave the naïve version of yourself that has never owned a home behind. Know the facts and use them to your advantage. Download our free First Time Home Buyer's handbook for tips and tricks when buying your home. - Do the Math; Know Your Budget
Since you're a first time home buyer, you're pretty much working from a blank slate. In this case it's extra important to have an idea of exactly how much the move is going to cost you. Lucky for you, we live in a society that's done the hard part for us. You can find a plethora of calculators online that will give you a real idea of how much you will be able to comfortably afford each month based on your income, debts and credit.
Since the transaction will likely be your largest asset, it pays to speak with a qualified lender or broker. Not only will this person help you get pre-approved for a mortgage, but if they're doing their job they will also educate you on the financial aspect of things, especially your budget and price range. If you need help with this part of your planning, contact us to have the Auxilium Team working with you. - Work On Your Credit
Knowing your credit is key when it comes to buying a home, and it's important to know where you stand before you get too far ahead of yourself. When you do get your credit report, check to ensure that the information is correct.
If your credit is less than perfect, you will need to figure out why and make the necessary changes to make sure it doesn't happen again. While it's definitely possible to buy a home with poor credit (we have a variety of lenders who will do this), it's still important to maintain a good credit history. If you would like us to review your credit and make recommendations that will assist you in securing a mortgage with best terms, we would be happy to do so! - Count Your Pennies
In the months - or even years - before buying a home, it's important to try and save up as much money as possible. This is not only because people often underestimate the costs associated with buying a home, but also because, once you do move, chances are there will be new home items you need or want to purchase.
By cutting out small things like your morning latte or opting to brown bag your lunch, you could save hundreds of dollars each week that can then go towards new wall art or a fancy shower curtain. The more you save ahead of time, the quicker you'll get settled in. - Get a Hard Pre-Approval
A hard pre-approval from the Auxilium Team is the closest thing to a guarantee that you'll get the mortgage. It allows realtors to take you seriously when you show up for the viewing. A hard pre-approval tells them that you're in a good position to get a loan, and it allows you to know how much you can afford so you won't be wasting time looking at homes out of your price range. While others may do a pre-approval, at Auxilium we only do hard pre-approvals. Contact us to learn about the difference.
The Auxilium Team believes that a home is more than a roof over your head. It's where friends gather, families are raised, and memories are made. Our experienced brokers work with you to break down the mortgage process, explain the terminology, and determine how you can get the most for your money. We offer a complimentary consultation to start your home buying process; contact us today at 250-590-6520 (toll-free 1-855-590-6520). You can also visit us at 307 Goldstream Avenue during regular business hours. We can arrange an appointment evenings or weekends to work with you.
Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.
This post reflects the best available information at the time of writing/last update. In order to ensure that you have the most up-to-date information, contact us to confirm the details for your specific situation.
Updated March 2018
This list originally appeared as part of The 20 Do's and Dont's For Buying Your First Home. See 6 More DOs for Buying Your First Home and The Top 9 DON'Ts for Buying Your First Home.
