The real estate world is complex and confusing and can land you in trouble if you’re not well aware of where to start and what to do. Fear not! Our experienced Oakville realtors have come up with six tips to help first-time home buyers.
1) Get the Pre-Approval
When you start your house hunting, the most important thing is to get the pre-approval for your mortgage. The process involves approaching a lender who will check your credit history and verify your income to determine whether you’ll be able to get a mortgage loan required to buy a home or not. It is the stage before the approval of the loan, hence the name ‘pre-approval’. It helps in making your home-buying experience easier and less stressful as it narrows down your search by establishing a budget or price range.
2) Don’t Consider Pre-Approval as a Blank Cheque
Getting the pre-approval letter is a big step towards purchasing your dream home. But, don’t consider it as a blank cheque as it only shows the maximum amount the bank feels you can afford to pay for your home on the basis of your income. Try to spend within this range because there are other expenses you have to pay beyond this specified amount for owning the property.
‘We come across many first-time buyers who think of spending the entire loan amount on the house without considering the additional expenses,’ says Marilyn-Henderson Briehl, a real estate agent in Oakville. ‘We suggest that home buyers should use the loan amount wisely while sticking to a budget’, she adds.