What You Need to Know When Buying Your First Home

20 June 2016
 Categories: , Blog


Buying a home is often on the top of the list for many people's life goals, but it can also be a scary process. There is a lot to consider, from deciding on your budget, to getting a loan, finding the perfect home, and making necessary repairs. Here are some things you should know when you are thinking about buying your first home. 

You Need a Home Inspection

Whether you are buying a house that was built 10 years ago or it is a vintage house labelled as a fixer upper, you need to have a home inspection done. There are many things that could be wrong with a house or apartment that is not obvious right away. Make sure before you even think about putting in an offer, you hire a good inspection company to look at everything from the plumbing and electrical work, to the HVAC system and foundation. Make sure they also look for signs of pests, such as termites, as these are disastrous to homes.

Getting a Loan is Not as Easy as it Might Seem

Even if you have excellent credit and a good job, that doesn't necessarily guarantee a home loan. Before you start looking at homes and setting your budget, you should start consulting financial institutions to find out about applying for a mortgage loan. If you have a great job but have only had it for a few months, you might want to wait a little longer. Some lenders want you to have it for a couple years before approving your loan. Other lenders look at how long you have been living at your current address, what your credit rating is, and how many lines of credit you currently have. You might have better luck at your own bank or credit union, so that is a good place to start. Pay close attention to interest rates since that also makes a big difference in how much you end up paying for your mortgage loan.

You Need to Find Out About Area Construction Plans

This is something many new home buyers don't consider when they are looking for their dream home. They only look at the house itself and what type of neighbourhood it is without doing research into what might be coming in the next few years. There may be homes on your street that have gotten building permits to renovate, which can cause a lot of noise and disturbance. The city might be planning on putting in a large shopping center around the corner, which can also have an effect on your home. However, some improvements are a good thing, such as finding out a park is going to be built soon.  

There is a Lot of Paperwork Involved

When you do finally put in an offer and it is approved, you then have a lot of paperwork to go through. This is why it is recommended that you use an expert in real estate, such as a property conveyancer. This person will help you transfer the title and go through the piles of paperwork for the purchase. They will let you know if anything is missing and help you read the fine print. Make sure you have them help with the transfer of the property and read through the purchasing contracts before you sign anything.