5 tips for first time homebuyers – Greater Vancouver Real Estate 2012
Five tips for first-time homebuyers:
Figure out the true cost: Buying a home will be one of the biggest financial decisions of your life, so you need to consider the cost of home ownership versus your lifestyle. Can you comfortably carry your mortgage, and still live the life that you want?
Make sure to leave yourself with enough wiggle room to enjoy what’s important.
Get your house in order: It is important that you understand the long-term costs and choose the right mortgage. Before you start your search, get pre-approved for a mortgage, remembering that just because a bank says you can afford something, doesn’t mean that you actually can. Run the numbers to see how much home you can realistically afford.
Budget for extra costs: A rule of thumb is to save between 1 and 3 per cent of the purchase price which will apply towards closing costs. But don’t forget to factor in the extra expenses that we sometimes forget, like utility hook-up, house insurance, renovations, and furniture. The real cost of closing on a home might be more than you think.
Create an emergency fund: Repairs and maintenance — or even an increase in fees or taxes — can catch you off guard. Having an emergency fund in place before you buy a home will give you peace of mind, and the financial buffer you will need to tackle most unexpected expenses.
Add more revenue: You can put a dent into your mortgage if you keep an eye out for opportunities to manage housing costs. Consider renting out part of your home, or having a roommate to help offset expenses. You could even rent out a spare room occasionally using AirBnB, or rent out an extra parking space if you have one.
If you have any real estate questions or if you are thinking of buying or selling your home, please contact James Louie Chung, Metro Vancouver REALTOR® — Real Estate Agent at firstname.lastname@example.org or call / text ( 6 0 4 ) 7 1 9 — 6 3 2 8 today!
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