5 Tips for First Time Home Buyers in DurhamDan Plowman Team
The market right now for buying a home in the Durham Region is hot, hot, hot. This can make it extremely scary for first time home buyers. The prices of homes are going up and what was once possible for the average household income in terms of what you can buy is starting to seem impossible. There is hope, though! You just must be extremely organized and realistic.
Below are a few tips for you to get started!
- Be realistic about your wish list – Even before you start going online and searching the available properties in your desired Durham area, it is a very good idea to sit down and write out a realistic list of what you want in your first home. Writing out a list of wants and NEEDS (yes, they are different) will help you narrow down the search options and help you focus on exactly what you want.
- Save, Save, Save – this is a big obstacle for most first time homebuyers. Stop going out and frittering your money away on everyday items that will not help you obtain your goal. $3 for a coffee every morning, $10 for lunch, it all adds up and is making saving for your home harder. It is a great idea to have at least 20% of a down payment ready and in the bank for when it comes time to move on your Durham Region home.
- Don’t start shopping and dreaming until you get pre-approved for your mortgage – It happens far too often that hopeful first-time buyers will get too wrapped up in the dream of home ownership without making sure they will be able to find a proper lender for them. Without pre-approval for a mortgage in this hot market, you do not look like a serious buyer and sellers will be less likely to want to do business with you.
- Know how much you can afford – This seems like it should be a given but it’s not to most people. Use easy mortgage calculators online to determine how much you will be paying out of pocket every month for your home. It’s a great idea to figure this out long before you want to buy a home and start putting away the same amount of money every month so that when you do move into your home, this is not a shock to your pocket book.
- DO NOT FORGET CLOSING COSTS – This can range from 1.5-3.5% of the total cost of your home. It includes some or all of the following:
- Legal fees
- Property transfer tax
- Home inspection fee
- Appraisal fee
- Land transfer tax
- Title insurance
- Property & Fire insurance
While we can’t take away all of the stress of buying a home in this crazy hot market, we can help ease the process for you! Call us today (905-668-1511) to speak with one of our talented agents and start making your dream a reality!