CONGRATULATIONS
You've reached a point in your life where you'd like to expand your equity and portfolio by purchasing your first home. Owning a home is an exciting milestone where you get to be your own landlord and have the free will to make your home your very own. But before buying a home, it's critical to understand the responsibilities that come along with homeownership.
Our team is here to help you through the entire process of homeownership, and we've put together some very important questions one should consider before sealing the deal. Our goal is to demystify home ownership and help you avoid any potential issues along the way.
1. HOW MUCH CAN YOU AFFORD
It's crucial to be transparent with yourself when it comes to how much you shell out for a property. Of course, it can be disappointing to find out you can't have the house you truly want, but it's best not to stretch yourself too thin financially by shuffling money around just to make it work. Before you know it, you'll be tied down to a continuous cycle of hefty bills, sacrificing a huge portion of your income just to pay a mortgage. There has to be a fine balance, as you don't want to drain other financial resources.
One of the best ways to determine how much you can borrow is by calculating your debt-to-income ratio. This percentage, in addition to your credit history, is one of the most important aspects that lenders take into consideration when determining how much they will lend you.
Your total debt, the sum of all your loans, mortgage, and credit card payments, should never account for more than 40% of your income. Since housing should never be more than 32% of your income, that leaves 8% for other debts.
2. WHAT KIND OF HOME DO YOU WANT
When looking for a property, remember to compare how little or how far that 32% can take you. It's a wise idea to do plenty of research on your target markets. Our agents will be happy to assist you with this process and answer any questions you have with your findings.
Some questions to help focus your search:
- What kind of property do you want?
- What style of house?
- What about size?
- How much maintenance are you willing to do?
- What sort of rules are you willing to obey?
- Do you plan on growing a family?
- What does life look like 5 years from now?
Perhaps you can't buy the house of your dreams, but when it comes to narrowing down your options, keep in mind that a house not quite to your liking from the start should still be considered. First-time buyers should focus on properties with room for value improvements. Things like hideous wallpaper, outdated carpets, and creaky windows can be fixed down the road. Always try to see the potential of a property; it's an investment after all.
3. HIRE A KELOWNA BC REAL ESTATE AGENT
Once you're ready to start home shopping seriously, it's in your best interests to attend an open house or showing with an agent. Once we've reached this point with you, we'll know exactly what your needs and expectations look like, and we're incentivized to ensure your success and prosperity through the homebuying journey.
We have the experience, local know-how, education, and most importantly, your best interests at heart. Our team will always be dedicated to negotiating the best deal for our clients. We can also get you exclusive access to listings before they hit the market.
Your total debt, the sum of all your loans, mortgage, and credit card payments, should never account for more than 40% of your income. Since housing should never be more than 32% of your income, that leaves 8% for other debts.
4. STAY WITH YOUR PRIORITIES
House hunting is an exciting and sometimes overwhelming experience. A home is such a personal investment, and it can be easy to get caught up in the emotional dynamics of the homeownership trying to find "the one". A great way to keep a practical mindset is to make a clear list of your priorities. Sometimes writing it all down and keeping a list on hand is what it takes to stay the course. As your agent, we are committed to keeping your eyes on the prize.
5. FIND A GREAT REAL ESTATE LAWYER
While everyone hopes for a seamless homebuying transaction, it's not always the case. Consulting with a real estate lawyer helps with all of the necessary due diligence, and is the safest way to be represented during the transaction process. Real estate lawyers carefully comb through any potential loopholes or concerns in legal documents and communication, which certainly pays off in the long run. We are happy to recommend trusted real estate lawyers in the area to all of our clients.
6. FOUND YOUR HOME? MAKE AN OFFER
A home inspection can make or break a deal. It's very important to have one performed, especially on a previously loved property. A professional home inspector will know where to find potential mold, mildew, poor wiring, asbestos, and septic issues. If you choose not to get a home inspection, you may find yourself shelling out more money to fix problems that could have been taken care of before purchasing the property.
7. TAKE ONE LAST WALK THROUGH THE HOME
It would be our pleasure to join you through the final walkthrough before closing the deal. We'll make sure that everything that was agreed upon has been finished to your standards, and that the home is ready for your move in.
LET'S DO THIS
A FIVE STAR EXPERIENCE FROM START TO FINISH.
1. MEET
We'll get to know each other, discuss your lifestyle, and set goals.
2. PLAN
We'll develop a plan that helps you move towards your goals.
3. ACHIEVE
Let's meet your goals. We'll take care of everything along the way.