For a first-time homebuyer, purchasing a home could initially seem like a daunting process. There are lots of steps, budget and strategy issues to think about, not just to mention many numbers to crunch and details to research. Don’t worry! First-time homebuyers enjoy many advantages created for them to help them find the right place to live. Here is a rundown of the home buying process, plus some tips to make it easier and more affordable.

Step 1: Know What You Can Afford

Before you start looking, it’s essential to know how much you can afford to spend on a monthly basis. You’ll want to include enough in your budget to cover your mortgage payment, taxes and insurance. In addition, you’ll need to save money to pay for your moving expenses, along with other fees that come with buying a home, in addition to the down payment itself.

If you’re using a mortgage broker, they can help you determine how much house you can afford and which type of loan will work best for you.

Step 2: Start Looking for a House

Once you’ve figured out how much you can afford to spend on a house, start searching for your dream home. For many first-time homebuyers, this is the most enjoyable part of the process. You can start your search by searching online or visiting open houses in the area.

Once you’ve got an idea of what you like, you can start looking at homes for sale and then narrow it down to a few that fit the bill.

Step 3: Get Pre-Approved for a Mortgage

No matter what type of loan you go for, it’s important to get pre-approved for a mortgage. A mortgage broker can review your financial situation and determine how much you can borrow from a bank. You don’t have to choose the lender that pre-approves you for a mortgage, but it’s a good idea to keep them in mind.

This will also give you an idea of how much you can afford to spend on a mortgage so that you can adjust your budget accordingly.

Step 4: Find a Real Estate Agent

Once you’ve found your dream home and are ready to get serious about buying it, you’ll need to find a real estate agent who can help you with the purchase. Real estate agents have the knowledge and experience needed to help you find and buy a home, as well as negotiate with sellers and lenders.

Step 5: Get a Home Inspection Done

Before you make an offer on a home, it’s a good idea to get a home inspection done. A home inspector’s duty is to examine the property inside and out and point out any damage or issues that exist. It’s common in Canada to use the services of a home inspector because repair of faults found is the responsibility of the seller, not the buyer.

Step 6: Look into Homeowner’s Insurance

Even if your home hasn’t been built yet, or the bank hasn’t fully approved your loan, it’s a good idea to start shopping around for homeowner’s insurance. Homeowner’s insurance protects the home you’re living in, and usually, the one you used as collateral for the mortgage, in case of a fire, theft or another unexpected event.

Step 7: Get a Mortgage

Once you’ve found a home and you’ve made an offer on it (or if the house is already in your name), you’ll need to get a mortgage. A mortgage is a loan from a bank or other financial institution that allows you to buy a home.

Obtaining a mortgage is often the hardest part of the home buying process because you need to show that you have enough money to be able to repay the mortgage.

Step 8: Sign a Purchase Agreement

When you find a home you like, you’ll need to sign a purchase agreement. This gives you the right to buy the house, but the seller still has the right to refuse your offer or negotiate a higher selling price.

Conclusion

There you have it! The basics of the home-buying process, from start to finish. Now, you can start looking for that perfect house with the confidence that you’re doing everything you can to make the buying process go smoothly. If you have any questions, don’t hesitate to contact us or your local mortgage broker.

Mills Financial Group is here to fulfill your mortgage needs. Whether you’re refinancing a home or you’re a first-time home buyer, our team of qualified and accredited mortgage professionals is here to help. Contact us today to get started.