If you're a first time home buyer and you are looking in Vaughan in areas such as Thornhill, Kleinburg, Maple, Concord, Woodbridge, you've landed on the right page to help guide you through the process. I've put together a practical list for you to follow to help make a difficult purchase a little less confusing and less stressful. Buying a home should be a great experience and that is what I do. Together, we can build great experiences.

 

For the majority of us, buying a home is not only an emotional and stressful decision, but a financial one as well. Why buy and not rent? It's simple. Unlike renting, buying a home is an investment that can appreciate over time, giving you more financial security later on in life. It will probably be the most substantial purchase you'll ever make and buying a home in Vaughan in areas such as Thornhill, Kleinburg, Maple, Woodbridge or Concord  are sure to appreciate more than the GTA average because of it's great location. It has what all families need and it's safe as well. But the satisfaction of making that big purchase can sometimes be spoiled by the confusion and hassle that comes along with it. So before you start choosing colour schemes and new furniture, there are many practical factors to consider first. Here's a few tips on making the process smoother.

 

First off, spend quality time before you start looking for a home and determine your needs and wants. Develop a predetermined shopping list of features you are willing to compromise on and ones you aren't. To properly prepare a home buying strategy, you must examine your lifestyle and budgeting priorities. The decision between a condo or house, detached or semi-detached could have just as much to do with personal preference as it does with expense. Once you have figured out exactly what you want in a new home, your next important step is to ensure that you are financially qualified to make such a substantial purchase.

Particularly for a first-time home buyer, it's absolutely critical to find out what kind of mortgage you can afford, even before you start looking. Too often, arranging a mortgage is left to the very end, forcing borrowers to scramble for financing. Prudent buyers will get pre qualified. If you need help with this, I can refer you to some of the best mortgage specialists in the city of Vaughan whether you are in Thornhill, Maple, Kleinburg, Concord or Woodbridge. They will get it done for you and lock you into the best rates possible.

 

Next you need to ask yourself how much of a down payment can you afford. Depending on the interest rate environment, you may be able to spend a lot more (or less) than you imagined. But it's vital to remember what you have saved isn't necessarily what you want to use, as there are extra costs that come in to play as you go through the entire purchase, including emergency funding. 

After you've considered how much you can afford for a down payment, the next step is contacting a bank or mortgage broker about getting qualified. Based on personal information you provide such as your income, debt and assets, you can receive a pre-approved mortgage, including an interest rate commitment for a set length of time.

Don't forget to work with the lender to find the right type of mortgage that suits your needs. You'd be surprised to discover what's negotiable. Some people want an open mortgage, some people need a closed mortgage. Whatever is your choice, please ensure you shop around and use someone who takes you through a needs-analysis assessment where you'll be asked questions about your borrowing strategies and what's important to you. Once you receive a pre-approved mortgage, you can confidently negotiate the purchase of a home. It's a no-cost, no-obligation deal that lets you know before you go house hunting how much you can afford to buy based on how much you can afford to borrow.

When looking for a home, one of the most important factors you'll have to consider is location. Once you've determined a few options for where you want to live, the next step is finding the right real estate agent.

Real estate agents are like matchmakers, bringing buyers, sellers and homes together. Agents must be on top of the market - in terms of sales, listings and house prices in the area. But most importantly, real estate agents need to make their clients feel at ease. Buying a home should be a great experience, not a nightmare.

While employing a real estate agent won't cost you anything (he or she gets paid by the seller), you may be asked to sign an exclusivity agreement with the agent, which is entirely up to you. Get an agent that you can get along with and who will work with you.

To find a good agent, let the referrals speak for themselves. Ask friends and family to recommend agents they've dealt with in the past. I would not use any part time agent. Why would you want to? This is the biggest choice you'll make. Use someone who lives and breathes real estate day in and day out. I've had dealings with part time agents, who quite frankly, are doing a disservice to their clients.

A good real estate agent will also be an experienced negotiator, with an understanding of how flexible a certain seller will be. But before making an offer, do your research. Find out how long the property has been on the market. If it's a new development, find out how much others have been selling for.

In many cases, a deposit is made and you may be advised to sign a "conditional" offer. When buyers and sellers strike a deal, loose ends often need tidying up before the buyer will proceed, such as financing or selling your existing home. For resale homes, you should never make the offer final without a proper home inspection, conducted by a licensed engineer to look for any major problems with the house that could end up costing you down the road.

Once these conditions are met, you should be prepared to make the offer "firm and binding." If not, the deal is off and you get your deposit back.

Don't wait until after the deal is struck before choosing a lawyer. YouWhen looking for a lawyer, make sure he or she is a real estate specialist. To find the right one, remember that quality and experience are the key, not just the price. Since a lawyer/notary's role is part advisor and part confidant, a good rapport with him or her is a must. As with finding a good real estate agent, ask friends and family if they have anyone to recommend. If you need one, again, I can refer you to some of the experts I have been dealing with for years.

Unfortunately for first-time home buyers, closing costs are often an unwelcome surprise. Besides the basic purchase price, you will face a long list of expenses before taking possession of your new home: legal fees, land transfer tax, title insurance, disbursements, adjustments and insurance policies to name a few.

For a resale home, these "extras" can easily add 1-1/2 to 2 per cent onto the basic purchase price. For brand new homes, that figure can easily reach 2-1/2 per cent. The time to check out these charges is before the offer is signed, not afterwards.

Finally, you don't want to be pressured into anything you may regret later. Use an agent that has all the facts, is experienced and knows the market. If you have any questions or concerns, please call. Enjoy your day.