Are you a first time home buyer? Find out what you should know as a new home owner before you buy, during the purchase, and after you move into your new home!
It is exciting to buy your first home, and when you are prepared it can be a wonderful experience. However, this process can also be overwhelming and frustrating if you are not yet ready to be a homeowner.
There are many things to consider when thinking about purchasing a home and whether you are ready for this step, including:
- Is your income consistent?
- How good is your credit score and credit history?
- Do you have time to care for your own property?
- Do you have an emergency fund?
- Are you planning on staying in the same place for a while?
Get Support to Make the Right Choices for You
At 20/20, we understand just how big an investment a new home can be, which is why we offer flexible and affordable mortgage life insurance policies to help you protect your house and your loved ones through all life’s ups and downs.
Want to know more?
What Should You Know As A New Homeowner
BEFORE YOU BUY
1. Know Your Priorities
Perhaps you want to be near restaurants, nightlife, and shopping. If you are planning a family, a home close to good schools with green space might be more important. Know whether it is more important to buy a smaller home or condo in your favourite neighbourhood or a larger home with a yard outside of it.
2. WAIT Until You’re Ready
Buy a home when you want to be a homeowner when you know that you want to be in the location for at least 3-5 years, and can afford the purchase without it greatly affecting your lifestyle.
Remember, homes are expensive not only to purchase but to own as well. You will need to budget for extra expenses such as taxes, insurance, maintenance and repairs.
TIP: If you are still in school, or it is your goal to take several large trips in the near future, it may be better for you to wait and save before purchasing a home.
4 MISTAKES TO AVOID AS A FIRST TIME HOMEOWNER
BUYING A HOME
1. Know Your Finances
Save 20% for a down payment. This will lower the cost of your mortgage and qualify you for options that are not available for a lower down payment.
Get preapproved for a mortgage before looking and you will reduce the frustration and disappointment of falling in love with the perfect home, only to find that it is out of your price range.
2. Look in the Low-Mid Range of your Price Range
Choosing homes in the lower to middle portion of your price range will give you room to negotiate when you find the right one. It will also give you the financial freedom to do renovations and upgrades to make the home your own.
3. Get a Home Inspection
Know what your home inspection covers and what is omitted. Ask questions about the inspection and if something comes up, take a closer look. Use information received in the inspection when you negotiate the price of the home. You can negotiate that the owner completes the repairs before you purchase or save money on the sale if you agree to do them yourself.
AFTER YOU MOVE IN
1. Adjust to the cost of home ownership before deciding on expensive renovations or furniture.
2. Take care of important maintenance. A leaking roof or dripping taps can get worse and cost you more over time.
3. Hire someone qualified to do any repairs/renovations. Not only will the work keep your home in the best possible condition, but you will avoid injury as well.
4. Make sure you are adequately insured. 20/20 Mortgage Life Insurance provides greater freedom than the insurance options offered at the bank at a lower price, saving you money every year you own your home.
5. Know your house. After you move in, take some time to explore your new home and:
- Find the main water shut off
- Label the electrical panel box
- Check fire alarms – are they adequate, change the batteries
- Clean gutters and downspouts
- Check dryer vents and replace the hose
- Make sure there is enough insulation in the attic
Call Today
Planning to purchase your first home? Find out how our flexible and customisable mortgage life insurance policies can protect your investment by contacting one of our agents at 1-844-974-2020 or fill in our online contact form to discuss your options and find out which 20/20 Mortgage Life Insurance products are right for your family.
