5 tips for first-time home buyers

1. Get pre-approved

There’s nothing worse than finding your dream home only to realize that it’s financially out of reach. This happens more often than it should in this industry. We encourage you to speak with your home bank to see what types of lending products are available and the loan size they are comfortable lending. Oh, and don’t settle right away! Take your first pre-approved rate and shop around with other lenders to see who deserves your business.

2. Craft a realistic budget

Sorry, but the purchase price is not the only item on the bill! Buyers tend to forget the extra costs that are associated with buying real estate (land transfer tax, legal fees, moving costs etc.) which can equate to 2 – 4% of the purchase price. It’s important to also include any upcoming purchases that you have planned (i.e new car, education, vacation etc). During our consultation period, we address these figures, timelines and programs/benefits for first time home buyers.

3. Break down your needs and wants

This is especially important when there’s more than one buyer. Breaking down these factors at the start encourages for open conversation and allows us to create a clearer path to your future home. Go over things that impact lifestyle (location, transit, proximity to family/friends), liveability (size, shapes, exposure, property style) and financials (age, condition, possibility for expansion). We personally like to take clients on a “window shopping” period to validate these lists and to show what is realistic in the market.

4. Understand your market

Is it a sellers or buyers market? How has the market changed from quarter to quarter or year to year? Are there certain neighbourhoods that are more aligned? Know what type of market you are getting into and how that impacts you as a buyer.  

5. Take a deep breath and enjoy the ride

Buying real estate can be an emotional journey. It’s like starting your own business; it’s never a straight line to the end goal. There will be twists and turns, ups and downs. But always remember the YIMTEAM will be there for you every step of the way.