Useful Tips for First-Time Land/Home Buyers
Buying your first home is an exciting and nerve-racking, experience. It’s a huge step, and you want to make sure you get everything right. New townhome builders in Calgary like Genesis Builders Group have developed prime land and helped establish diverse thriving communities for families. A new house gives your family room to grow and something to truly make your own.
Here are some tips if you’re buying land or a home for the first time:
- Start saving for a down payment: Find out how much you’ll owe up front. Although it’s common to put 20% down, some lenders offer programs that let you put 5% or even 3% down.1 Use a down payment calculator to determine exactly what you need. Also, explore down payment and mortgage options available from your lender or your city, county, state, or federal government.
- Manage your credit: Check your credit report at least a year in advance. You’ll want to look for errors or any activity that may warrant improving your credit score or paying more toward outstanding debts. Don’t open any new credit accounts or apply for new loans. The lower your debt and better your credit, the more favorable your loan terms and interest rate may be.
- Create a budget: Around six to eight months before you start, determine your budget, factoring in the principle of the loan, interest, taxes, and insurance. Don’t go by bank approval alone. It won’t do any good to be approved for a loan and not be able to afford it. Consider your household expenses, utility bills, automotive costs, and other financial obligations as well. Subtract everything from your monthly income to determine what you have left over for mortgage payments.
- Shop around: About two months before buying a home in, for example, the Saddlestone community, start vetting lenders and comparing mortgage rates. If you compare lenders, you can save thousands of dollars over the first five years of the loan term. It also helps to get a preapproval letter, so a lender can analyze your finances to determine what to lend you.
- Hire an agent: A real estate agent familiar with houses for sale in Calgary NW can be invaluable. They can provide advice based on market conditions, pricing, and the neighborhood that might be right for you. There may be locations, facts, and negotiating tactics you’re unfamiliar with.
- Do your research: Check out the neighborhood and see if there are schools, grocery stores, hospitals, restaurants, and other amenities nearby. Take a look at safety and crime statistics as well. Noise and traffic can affect your living experience, so drive around the area at different times of the day to get a feel for things.
- Don’t forget what you can afford: You might be preapproved for a certain amount, but always look to spend less than that. There are other expenses to consider, including unexpected ones like broken appliances and leaks. Stick to a number and keep your emotions in check; there may be lots of people bidding on the same house but don’t overprice yourself.
Consult Top Home Builders in Calgary
There are many other considerations when buying a home for the first time. If you’re looking for the perfect home and community, allow our builders to help explore options in Calgary or show homes in Airdrie that may suit you. Feel free to contact us today for more information.