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First Time Home Buyer's Checklist.

What do you need to know?

I love checklists! They help me at work, at home and I hope the one here will help you when buying your first home!
 

You will not forget what you need to know. Buying the first home is very exciting but also overwhelming. There are many things you should keep in mind and it is your first time!

 

Here is the first time home buyers checklist you should keep and make sure that you didn’t miss anything. Many people start with looking for a home just going to open houses or they set showings with the realtor. But what happens when they see the one they would love to buy and they are not prepared? This can lead to a lot of stress! If you are not prepared you can lose the house you would like to buy or lose money by overpaying, not doing proper inspection ….

First Time homebuyer checklist

I cannot say it more often! – Get Pre-approved by the Lender!!!

Again and better: Get Approved by the Lender!!!

 

Checking the websites and seeing what you can afford is not enough. Many first time buyers just guesstimate what they can afford. I hear from buyers that they don’t want the lender to check their credit score because the score will dropdown. Yes, it will but only a few points (usually 5) and it will go back within a few months. You will not buy home right away anyway. It will take 3-6 months on average to find the right place. It is in your best interest to know your situation. Looking into your financial situation before you can see if you need to improve your score, save more money, wait longer to buy, see if there are any discrepancies in your credit score, and co-signers if needed….

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In the end, you will know the highest price you can pay for your future home. It will save you and your relator's time. In a hot market where we have multiple offers on the properties, you can beat your competitors providing the pre-approval letter from your bank. They will rather accept your offer with the pre-approval from your bank than your competitor’s if other conditions of your offers are similar.

1) Visit a lender


After a short visit with a lender, you will know your maximum price. This way you will not waste your time or have
higher expectations.

Most of the buyers ask for the interest only. But the lowest interest rate can cost you thousands of dollars.

Not getting the right mortgage can cost you a lot of money in penalties if you sell your home earlier, your mortgage might not be transferred if you move to another province... The good mortgage will ask you many more questions to find what is the best scenario for you. Not only about your credit, income and the property you are buying.


Now you know how much you can afford.

2) Where do you want or have to buy?


Knowing your max. you can narrow the areas or the properties you can buy. You will have a better “picture” of
your future home. Do you need to buy close to your work, school, family? Is it worth to you to move farther from
expensive areas to have longer commuting to work but having a nicer home? Nobody knows your preferences
better than you but experienced real estate agent can help you to make these decisions.


Make a list of the areas you would like to move to.

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Would you like to start the search for the properties now? Then CLICK HERE.

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3) Professionals you will need

Having the right professionals to help you with your first purchase is crucial.
 

We already talked about the LENDER. The next one and I would say the most important one is the REAL
ESTATE AGENT who will help you during the whole process and will make sure that nothing is missed. The right
professional will make sure that your checklist is up to date. He/she will tell you what other steps you will need to
make.

Other professionals you will be in contact with:


APPRAISER (not always) Banks will always have their appraisal made on the property making sure that they will
not borrow more money than the property is worth.


INSPECTOR will check that the property doesn’t have major problems, will educate you about what needs to be
fixed and how to maintain your property.


REAL ESTATE LAWYER will represent your interest in the transaction. The lawyer will look if there are any liens
on the property, negotiate if needed with the seller’s lawyer, will make the transfer of the funds…


INSURANCE broker will find out if there were any claims on the property and will tell you what will be your
monthly payment. If you get a mortgage you have to have the insurance. Only if you pay cash that you are not
required to have the insurance.

4) Upfront costs


Here is the list of the upfront costs you will pay before or at the closing:

  1. Deposit

  2. Down-payment

  3. Home Inspection fee

  4. Legal fees

  5. Land transfer fee

  6. Property insurance

  7. Title Insurance

  8. Adjustment for prepaid

  9. Property taxes and/or utility bills

  10. Fees you might pay but not always:

  11. Estoppel (Stratus) certificate fee (for condominium/strata unit)

  12. Mortgage broker’s fee

  13. Survey or Certificate of Location fee

  14. Mortgage loan insurance premium (can be included in your mortgage)

5) Other upfront costs

 

Once you buy your property you might need to do many things to feel at home or just because there are repairs requiring your immediate attention.

 

  • Here are some examples:

  • New appliances

  • Tools

  • Snowblower

  • Lawn mover

  • Moving expenses

  • Fees to set up utilities and other services

  • Repairs, renovations, decorations

  • Window coverings (curtains, blinds, etc)

  • Door locks ....

6) Your monthly budget
 

Housing costs:

  • The costs related to owning a property:

  • Mortgage payment (principal and interest)

  • Electricity

  • Heating costs

  • Maintenance and repairs

  • Parking (if paid separately)

  • Property insurance

  • Property taxes

  • Water

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Other Expenses - Living costs:

Living costs are your:

  • groceries

  • gas

  • car payments

  • credit card payments

  • life insurance

  • bank fees

  • phone

  • car insurance

  • home insurance – your personal items

  • dining

  • vacations

  • other

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I hope that the above information will help and it is not overwhelming.

If you have any questions or comments please do so or start the search HERE.

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