Buying A Home? 3 Do's 2 Don'ts

What every first time home buyer should know

Farhaneh Haque

15 March 2011 01:18

Dreaming of owning a home? There’s more to buying a house than saving for a down payment. Buying a home requires good planning and advice from a trusted team of experts.  Farhaneh Haque, Regional Sales Manager of Mobile Mortgage Specialists, TD Canada Trust says home buyers should seek professional advice to ensure they’re prepared for the complexity of the process as well as the responsibility of home ownership. “Mortgage specialists can help home buyers figure out their needs, what they can afford and which mortgage product is best for them - whether that’s a five year fixed rate mortgage, a five year variable rate product or something entirely different, such as payment flexibility to be able to pay off their mortgage faster which could give them the flexibility to pay less at a later date if something unexpected came up.”
Haque shares some do’s and don’ts for home buyers.
Do:
Gather a team you trust. You should consider assembling a professional team to get you through the technicalities of home buying. This team can include a mortgage specialist, real estate agent, home inspector and lawyer. Ask around for referrals and meet with them in advance so that you are comfortable relying on their advice when you need it most.
Know what you can afford. Only you and your lender can properly determine what you can afford. To make sure that borrowers can still support their mortgage in the event that interest rates rise, the government recently made some changes. Borrowers must be approved based on a five year fixed mortgage rate, even if they select a different term.
Choose the right option for you. After you know what you can afford, narrow down your search by figuring out what type of home suits you best. Ask yourself questions such as do you want: a house or a condo? A new home or older home? In the city or a smaller community? Is more square footage worth a longer commute? Are you looking to renovate or move right in?
Don’t:
Skip the home inspection. You may know a handy guy, but the best way to see if your dream home will turn into a nightmare is by having, before you purchase your home, a home inspector identify any potential problems and determine whether or not any upgrades need to be made.
Buy more than you need. Even if you can afford a more expensive home, choosing one that you love at a lower price point allows you to keep some breathing room in your budget. A fourth bedroom that you never use is just another room to clean and heat! For more information go to http://www.tdcanadatrust.com/.