Dear first time home buyers! The thrilling adventure of homeownership awaits, but before you book that first showing, let’s prepare with some friendly and financial tips for all of you who are first-time buyers.
1. Assess Your Financial Readiness
Before you unleash your inner homeowner, give your finances a friendly high-five. Check out your credit score, keep tabs on your debts, and be besties with your monthly expenses. Knowing your financial situation will help you figure out how much money you can budget for your dream home.
2. Create a Budget
Nobody likes to have a budget, I get it. But as one of the first time home buyers, a budget will help saving you from a lot of hassles and headaches knowing if that hot water tank fail, you can replace it in a flash with no sweat. Map out all the costs of owning a home – the down payment requirement, closing costs, property taxes, and don’t forget to account for homeowners insurance. Creating a budget will help you find a home that not only looks good but also vibes with your wallet.
3. Save for the Down Payment
Saving for a down payment is like saving for the hottest ticket in town – your dream home. If you purchase a home to live in, you can do as little as 5% down-payment in Alberta. This step is normally the most challenging for first time home buyers. We’ll discuss ways you can use to save up for down-payment.
4. Get familiar with Mortgage Options
Mortgage choices can be overwhelming to a first time home buyer like you. Each mortgage option has its own sets of advantages and drawbacks. Research fixed-rate mortgage in Canada and adjustable-rate mortgages, and find the one that suits your financial goals and needs. Consulting with a mortgage professional can provide valuable insight and help in determining which option is best for you.
5. Don’t forget closing costs
Closing costs are part of finalizing the transaction. Expenses such as legal fees, title insurance, and other can be anywhere from 0.5% to 3% of your home’s price tag. Don’t forget to budget for the closing costs to avoid any last minute hiccup due to insufficient funds. It’s not fun.
6. Plan for the additional costs of owning a home
Owning a home also involves other costs. There are property taxes, HOA (home owner association) fees, and utilities keeping the lights on. Don’t forget to put some money away for maintenance purpose such as duct cleaning, furnace and air conditioner tune up, and others. Plan ahead to keep the good vibes flowing.
7. Build an emergency Fund
A solid emergency fund is like having a superhero cape for unforeseen expenses. Home repairs, medical bills – you name it. Be the superhero of your homeownership story.
So, future homeowners, as you prepare to embark on this grand adventure, remember: a little financial swagger, a sprinkle of budget magic, and a dance through mortgage options will make your journey to homeownership not just financially savvy but downright enjoyable. Let’s turn that dream home into a reality with a smile, a wink, and maybe a little dance along the way!