First Time Home Buyers - Getting into Home ownership

Buying a home is probably the biggest investment that you will make in your life. There are many aspects that you must take into consideration when choosing the house: price, location (the distance to your workplace, access to public transportation), and the age of the building. Since the investment demands a great amount of commitment, First time home buyers might face a lot of challenges. Here are few things you should consider to feel ready to take the huge step:

• Check and strengthen your credit -  Your credit score will determine whether you qualify for a mortgage and affect the interest rate lenders will offer.
  Take these steps to strengthen your credit score to buy a house:

1. Get free copies of your credit reports from each of the three credit bureaus — Equifax and TransUnion — and dispute any errors that could hurt your score.
2. Pay all your bills on time, and keep credit card balances as low as possible.
3. Keep current credit cards open. Closing a card will increase the portion of available credit you use, which can lower your score.

• Get pre-approved and talk to a mortgage broker/bank — this should be the first step for a first time home buyer because it will give you an idea of what your true budget is.
  It is important that first time home buyers obtain this information as soon as possible. This will outline the costs associated with home ownership so that they can proceed with a comfortable and realistic budget based on their lifestyle.
   
• Know about First Time Home Buyer Incentives - The First-Time Home Buyer Incentive helps people across Canada purchase their first home. The program offers 5 or 10% of the home’s purchase price to put toward a down payment. This addition to your down payment lowers your mortgage carrying costs, making home ownership more affordable.
   
• Know about other costs -
  Closing costs: These are the fees and expenses you pay to finalize your closing.
• Move-in expenses: You'll need some cash after the home purchase. Set some money aside for immediate home repairs, upgrades and furnishings.
   

If you have any questions and concerns about getting into home ownership, Contact me. As an experienced realtor I can help you get into home ownership! It is easier than you think!

Call (416) 417-4633 for more information!