First Time Home Buyers in Calgary
We love first time home buyers. Nothing quite matches helping people find their first home, which they'll fill with life-long memories. We know that buying a home for the first time is a landmark event and we're here to help you through every step of the process.
Owning a home is an exciting and meaningful experience, so we want to make sure you get the most out of it.
The first step when considering purchasing a home is reflecting on whether you're really ready. There are a lot of responsibilities that come with owning a home and it's crucial to be mentally and financially prepared for them.
A lot of people look at owning a home because of the extra freedom to paint walls, own pets and modify the home to truly reflect your personality. While these are definite perks to owning a home, there are a lot of extra responsibilities that people don't consider, like mortgages, taxes and maintenance.
It's important to critically reflect on your finances and your expectations, to ensure that you get the most out of this new experience.
Questions for Prospective Homeowners
Are you ready?
Owning a home is a commitment that can last for decades. That's why it's important to really understand what you are signing up for. You'll need to be prepared to make sacrifices, which can affect your social and financial life.
What can you afford?
We know it's discouraging to realize your income won't buy your dream house right away. This is a reality that a lot of first-time home buyers have to face. But allocating a massive part of your income to your mortgage will quickly become a burden. It's best to buy a modest home now and look at upgrading in a few years. Affording your dream home is something that takes time and it gives you a goal to work towards.
What's your debt-to-income ratio?
Lenders take your debt-to-income ratio very seriously and it will have a direct effect on what you are able to borrow. Your monthly payments to overall debt shouldn't exceed more than 40% of your income, with your housing debt never taking up more than 32% of that figure. To find out your debt-to-income ratio, add up all your monthly payments for car payments, credit cards, student loans and any other monthly debt payments, then divide them against your income. That's your current debt-to-ratio income. What 32% of your income will allow you to purchase can vary drastically depending on your location and salary, but this calculation can help you figure out what kind of home and location you can afford.
What home do you want?
Are you willing to clean your own gutters? Do you mind mowing the grass every week? Instead, do you want to pay someone else to look after these things for you? Can you comply to a regular garbage schedule or would you prefer to get rid of trash at your leisure? Do you mind living in an older home? Is a convenient location or an extra bedroom more important? These types of questions will help you determine what Calgary neighbourhood will suit your style. Write down a list of what you want in your home, making sure to differentiate between what is mandatory and what is a "nice-to-have" feature. This list will help you prioritize and make a smart decision.
The Calgary Real Estate Advantage Team Can Help
We know that you need great real estate agents willing to work hard for you. That's us. We're dedicated to helping you find the best home for the right price, regardless of your budget. We want your first home purchase to make you ecstatic and we'll work with you to make that happen.
Hiring us means you get stress-free advice and assistance from our dynamite team with years of experience. We knows the ins-and-outs of the Calgary real estate market and will put our knowledge to work for you.
Remember your goals when visiting a home. Purchasing real estate can be an overwhelming experience and sometimes overrides common sense. Keeping your list of needs versus wants in a home will help keep you on track. When we're alone, we can compare your list against each property we visit and make sure we're on track. We'll keep you focused and ensure that you find a great property that will meet your needs.
Find a skilled real estate lawyer. We know several fantastic lawyers that we'd be happy to recommend to you. We suggest interviewing potential lawyers to ensure you find someone you work with. Real estate lawyers can be expensive but they make sure you're protected against future legal troubles. The legal process behind transferring land ownership is complex, so we always highly suggest having a good lawyer on your site.
Making an offer. Making an actual offer on a Calgary home can be a confusing process. We're happy to prepare the paperwork for you and walk through every step, so you understand exactly what's happening throughout the entire process. Sellers may reject offers, so it's important not to get your hopes too high on a home during this process. Many home buyers, first or otherwise, go through the offering process on several different homes before finding an agreement that works for both parties.
Do your inspections properly. Hire a home inspector. While this step is technically optional, you probably aren't ready to own a home if you're willing to skip it. Home inspectors check for damage, pests and harmful materials. They ensure that your home is safe and has good structural integrity. A home inspector can save you thousands of dollars and preserve your long-term health, by catching problems like mold, lead paint, asbestos, faulty wiring, shoddy craftsmanship and a whole range of other problems. Even new houses require inspection, because they haven't been tested through years of use for quirks or problems. An official home inspection can allow you to negotiate home price, budget for future maintenance and, if needed, walk away from the purchase. We know several great inspectors in Calgary and would happy to recommend them to you.
Walk through the home one last time before closing the deal. We'd be happy to come with you to help ensure that everything promised was completed, prior to signing the final contract.
From the moment you decide to purchase a house to the day you receive the keys, Calgary's Real Estate Advantage team can help you with the complex process of purchasing a home. We'd love to make your home search easier and help you find your first home. Contact us for more information about first time home purchasing.