Ready to be a proud real estate owner in Muskoka? Although the process of purchasing your first property is certainly an exciting one, it can also result in a little first-time home buyer anxiety.
For property newbies, the best way to prepare (and lessen your home buying stress) is to do your research and work with experienced and qualified professionals in the industry. Here are five tips that will help you on your journey.
1.Get pre-approved
Before you begin your search and set your sights on your dream Muskoka property, it’s advisable to get pre-approved for a mortgage. By getting pre-approved, you’ll understand what’s within your price range, and what your monthly payments will look like. Keep in mind that pre-approval does not necessarily mean that you are guaranteed to get final approval for a mortgage, but it definitely alleviates much of the worry around financing. Additionally, getting pre-approved is advantageous when working with a real estate agent, as their efforts to help you find that home won’t end up being halted if you’re unable to secure financing.
Many first-time home buyers are often a bit nervous about getting financing, and aren’t aware that they should be shopping around to get the best rate and terms; it’s worth the effort to compare rates. Even a difference of 0.5 percent can make a significant impact over the years in total mortgage spending. Although the big banks are usually the first place people go for a mortgage, there are also credit unions, trust companies, and mortgage brokers to work with. Be careful about private lenders however, as they are not typically regulated, and you can end up paying far more than you were prepared to.
2. Work with an agent who is used to working with new buyers
Working with an experienced and knowledgeable real estate agent is another great way to make the process of purchasing your home a little easier. Ask around for recommendations and try to find an agent who specializes in working with first-time home buyers, as they will have the best sense of your needs and help guide you through your first real estate transaction.
3. Do your research
When buying your first home, there’s a lot to know. It’s critical to do your own personal research in order to be ‘in the know’. For example, mortgage regulations in Canada have undergone major changes recently which will likely impact how much of a mortgage you’ll be approved for. Learning more about this, and other rules and regulations will give you a better sense of where you stand, and prevent any nasty surprises that could crop up.
4. Look for discounts and incentives
When doing your research, you’ll want to investigate the many ways that you can save money. There are incentives available for first-time home buyers, such as land transfer tax rebates or using your RRSP money towards your down payment that can help make buying your first home more affordable.
5. Work with a real estate lawyer
Working with a real estate lawyer is always a great idea for first-time home buyers who may not be sure of the many nuances involved in buying and selling real estate. Real estate lawyers work with their clients to review purchase agreements and other documents, conduct research (including research related to any liens against the property or environmental concerns), and help close the deal. Your real estate lawyer has your best interests in mind and will look out for you and your investment throughout the process. To learn more about why working with a real estate lawyer is a good idea, check out one of our recent blog posts here.
At Ares Law, we love working with first-time home buyers to help make home-ownership dreams come true. We also offer a $250 reduction in fees and other special advantages for eligible first-time purchases. Connect with our team today at (705) 645-8743 for a consultation.
