First Time Home Buyer?

Written by James Mariano

In today’s market, it can be very stressful in buying a home. But it can also be an exciting and rewarding time. It will also be one of the biggest purchases in your life. If you are a first time buyer, it’s very important that you know the whole process and what fees are expected.

You’re knew to Winnipeg., or maybe have been here for awhile. Now, you have decided that you want to have your own home. Wouldn’t that be great? Where do you start?

First, go to a bank or a mortgage broker and see what rates they offer you. They will help you out and see how much you can actually afford. Before searching for a home get PRE-APPROVED! Pre-approved buyers are financially pre-qualified to purchase a home and are considered more serious than buyers who are not. Imagine searching home after home and you finally find your dream home. Then you realize you can’t afford it because your bank says you don’t qualify. That hurts. Always, know how much you can afford. I always ask my clients if they’ve been pre-approved. It’s always a good idea to get a letter from your bank or mortgage broker stating how much you are pre-approved for such amount.

Make sure they actually screen you. Some mortgage brokers and bankers just look your basic information like salary and place of employment. Then they make an estimate of whether you’re approved or not. Every person’s situation is different. People have more debt payments than others, so they might tell you at first you’re approved then when you apply for financing, they’ll tell you otherwise because you have too much debt to service.

Once you do get the pre-approval, you then find a Realtor you feel comfortable working with. He or she must have knowledge of the market but most importantly answer your questions and assist you throughout the whole buying process. Your Realtor will be the key to help you find the right home in the area you wished to live in. He or she must understand exactly what you want in a home (how many bedrooms, full basement, etc.), what price range and area. As a Realtor, I find communication to be important when working with buyers because I know the wants and needs which makes things easier.

Now, once you choose your Realtor, this is the fun part. You can now start looking for homes with your Realtor. Don’t be shy to ask your Realtor any questions because there is no such thing as a dumb question when buying a home. Once you find the right home, your Realtor will research the home and do a comparative market analysis (CMA) . Every time I write up an offer I do a CMA. This involves determining what offer is a fair price. Your Realtor will write up the offer and present it to the listing Realtor. I always tell first time buyers don’t take it personally if you lose on an offer. If your offer does get accepted, then you must have a lawyer close the deal, meaning getting all the necessary paperwork to get the deal done. Your lawyer will be working with you and guide you through the whole closing.
Which brings me to the closing costs of buying a new home. Some people don’t know that there are other costs to pay for during the transaction. There are things like lawyer fees, taxes, insurance, etc. Typically, expect to pay around 2-4% in closing costs of the purchase price.

When you buy a house make sure you’re prepared and know how the process works. Don’t let your dream of owning your first home turn into a nightmare.

Earn up to 1500 Airmiles!