If this is your first time to buy a house, you’ve come to the right place. There’s no doubt you’re a little worried about the financial aspect of the purchase. After all, how do you even approach an expense as big as this one, right? Don’t worry, though, that’s what we’re here for.
After doing some research, we came up with a list of financial dos and don’ts, as well as some tips to get you through the day. In this quick guide, we’re sure you’ll find answers to all your financial concerns. So, here’s what you should know:
There’s No Such Thing as Too Early
We’ve all got that little procrastinator inside of us and no matter what we do, they’ll always be there to tell us, “chill, dude. It’s still so early.” Newsflash, it’s never too early, dude.
Houses are the type of investment that you’re definitely going to make at some point in time; you’ve gotta live somewhere, right? Let’s say you decided to settle down in Canada and you’ve found some very suitable new townhomes located in North York. Imagine not being able to get a unit because you don’t have enough to invest yet. Well, that’s why you should try to keep aside a sum of money each month or something.
The thing is, you never know when you’ll find the perfect house which is a problem if you think about it. What if you stumble upon your dream house, but find out that you have no money for, at least, a down payment? Such a waste, isn’t it? Well, again, that is why it’s never too early to start saving up.
Consider Your Payment Options
How do you plan to pay for your house is a question you should know the answer to before you sign any papers. So, before committing to a house, make sure that you know all the available mortgage options, and that you have a way of paying off these mortgages. Keep in mind that a large down payment means a lower mortgage which is another reason to start saving up.
One option that people often consider is borrowing loans. Now, we get that some of us don’t like being indebted to anyone, but houses are too much of a large expense. So, if you’re a first-time home buyer, we believe you should look into borrowing some money.
As mentioned on Instabank(https://instabank.fi/laina), you always get the option to choose a repayment and loan combination that suits your personal situation; it’s what banks are all about those days. Remember that, sometimes, it’s okay to get out of your financial comfort zone; as long as you maintain your stability that is.
What to Do with A Mortgage Pre-Approval Letter
Well, first off, a pre-approval letter is a document where the lender states the amount of money they’re comfortable lending you. In other words, it’s what you’re allowed to spend on a house. However, don’t forget that this is all the funding you get from those lenders, which shouldn’t be a problem if you’re expecting the buying process to go smoothly.
Unfortunately, a first-time house buyer like yourself should know that smooth purchases are sort of a myth. There’ll always be something extra to pay for: initial price bids, closing fees, repairs, and things of the sort.
The main point is, don’t go all-in from the get-go. It’s better to look for houses that cost a little under the amount you were pre-approved for. Why? Because if your prospect house gets a couple of offers higher than yours, you’ll be able to fight for it. On the other hand, if your first offer is all that you can afford, a higher offer would be the death of you.
It’s Not All About the Mortgage
Once you get approved for a mortgage and place an offer on your house, you’ll feel like you took huge strides, but remember that it’s not the end of the journey. You still need to pay for a thorough house inspection, your furniture, and your real estate agent’s commission, too. So, don’t pour all your funds into getting the house because the expenses that come after may end up being a problem.
That being said, we’d like to congratulate you on taking your first steps towards being a homeowner. It’s a long, testing journey, but when you’re past the finish line, you’ll realize that it is a journey worth all the troubles in the world.
If you ever feel overwhelmed by the decision and all the expenses, take a breath and remind yourself of what happens after owning your own house. Just imagine not having to pay rent at the end of the month, isn’t that something?