What to Expect as a First Time Buyer

There are a variety of “hidden costs,” contractual intricacies, and bargaining points that first time buyers and new homeowners need to be cognizant of. Relating to last week’s article, having a real estate professional to help you in the event of a bidding war is going to be useful in a competitive market, especially as a first time buyer. 

For a first time buyer, the preparations required can build up to feel like an overwhelming to-do list. Many people without experience in real estate feel that they have to address all of these requirements separately, and by themselves. Any reputable realtor or team will be able to guide you through every step of this process, including putting you in touch with a mortgage broker and giving you recommendations for reliable insurance agents. 

If you are looking for help organizing your home buying to-do list, here’s one to help you start organizing your thoughts and activities as you venture into the real estate market.

1. Find a real estate agent that you like! Make sure they understand and respect your needs, and that they are a person that you like dealing with, because you will be dealing with them a lot.

2. Work with your realtor to determine a reasonable price range that allows for wiggle room. They can help you understand hidden costs that should be factored into your financial considerations.

3. Get pre-approved for a mortgage through your bank. A mortgage broker will be able to walk you through this process, and instruct you on the best type of mortgage for your specific situation.

4. Gather your relevant documentation. This includes bank statements, tax forms, employment records, and personal identification. 

5. Begin the search! Make sure you take the time to discuss exactly what you are looking for with your realtor in order to find your dream home as efficiently as possible.

In terms of hidden costs that you may encounter, they will most likely include a home inspection cost, homeowner’s insurance, Land Tax Transfer (which will normally be between 0.5 to 2.5 percent of the cost of your home), and legal fees because of the amount of legal paperwork associated with home sales and purchases. There could be more hidden costs, depending on your circumstances, but if you have a dependable realtor that you can trust, they will help you address these costs without exceeding your budget, and with minimal stress.