Are You Ready To Buy?

 
Although buying your first home is exciting, it can also be overwhelming. My job as a professional realtor is not only to help find the perfect home for you, but also to guide you through the entire process, from start to finish, and ensure that you are fully informed and comfortable every step of the way.
In addition to incurring ongoing monthly expenses when you purchase a home such as taxes or insurance, buyers are also responsible for a number of one-time costs that they may not be aware of. One-time fees can include such things as the mortgage application fee, home inspection, land transfer tax, mortgage insurance and closing costs to name a few. Buyers are also required to pay a deposit when they purchase a home, typically rangikng from 5-25% of the purchase price.
Here are some things you should consider before jumping into home ownership:

How Much Can You Afford?

There are two general affordability rules that will help you figure out what you can afford on a monthly basis in your current financial situation:
  • Your monthly housing costs shouldn't be more than 32% of your gross household monthly income. Monthly housing costs include: mortgage principal and interest, taxes and heating expenses. This is known as your Gross Debt Service (GDS) ratio
  • Your entire monthly debt load shouldn't be more than 40% of your gross monthly income. This includes housing costs and other debts such as car loans and credit payments. This is known as your Total Debt Service TDS) ratio

Check Your Credit Rating

Your credit score will have a huge impact on what type of property you can buy, and at what price. It is recommended that you check your credit rating either on your own or with an experienced lending institution so that you can determine what you can afford.

Get a Mortgage Pre-Approval

Having a pre-approved mortgage amount makes the search for your new home much easier and less time consuming because you have a good price range in mind. You will need to provide the lender with your personal information, sources of income, confirmation of income, proof of financial assets and liabilities and the source of your downpayment.

Narrow Your Search

Come up with a list of "must haves" for your home. Drive around the neighbourhoods that interest you, in the daytime and in the evening, so that you can get a feel for what it would be like to live there.  Once you have a list of your criteria, your realtor can help find homes that suit your needs and not waste your time looking at properties that aren't appropriate.
 
 

 

Service Review

  • " Krista was recommended by a family friend. We were first time buyers and Krista helped us understand everything about purchasing a home and guided us very well (and patiently) throughout the process. We would highly recommend Krista - she is amazing at her job! "

    5 Stars
    C. & B. Irish

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