First-Time Home Buyers
When you decided it was time to buy your first home, things can get a little complicated. Not because it's impossible, but because there are several elements that must go hand-in-hand to ensure the overall process is successful.
You may be wondering, "isn't it just getting a Realtor and choosing a house from the many homes on sale?" Well, no!
Some of the many questions that you need to ask yourself before you you start considering the possibility of buying a house include:
- Which is better financially for me: rent or buy?
- What was the condition of the real estate market?
- How much house can we afford to buy?
- Which house characteristics were a must? Which were negotiable?
- How much do we need for a down payment on a home?
- How much money do we need in addition to our down payment?
- Who to approach first, bank, lender, or Realtor?
Well, it's a good thing The McKay Team is here to help you sort through it all
Some of the factors you should consider before buying a home include:
Are you putting down roots?
Consider your job situation. Is it permanent or long-term? What are the chances you could be looking for a new job in five years or less? Is this a city or province you would like to settle in? Of course, you cannot reliably predict the future 100%, however, your answer to these questions can make or break your final decision.
Renting costs versus homeownership
Make sure your considering the cost of ownership. Can you afford the additional expenses? Are the benefits of homeownership worth the extra expense? Does it make financial sense?
How much house can I afford?
This involves assessing how much you can afford to spend on a home. What if mortgage rates rise by 1% or more? Could you still afford the house? Many online calculators tell you how much you can afford based on your current income and debts. It's best if you can aim for a house even less than what the calculators tell you so you don't end up house poor. Consider the 30/30 rule, having a 20% down payment and a 10% buffer in savings and your mortgage payments less than 30% of your gross income.
Your specific circumstances.
Buying a home is more than just running financial calculators. At the end of the day, you have to do what is right for you and for your family.