Purchasing a New Home: A Guide for Beginners

Buying a home can be a very daunting task...especially if it's your first time. Many overzealous home-buyers make many mistakes in the preliminary stages of buying a home, and then end up putting their newly-built houses for sale. You can avoid becoming a "For Sale" home-owner statistic by gaining as much information as you can prior to putting any money down, and by always reading everything before you sign it and understanding exactly what is going on. Keep in mind that the home buying process is very time-consuming. You won't be able to get your dream home in one day (unless you're a super-rich, manipulative mongrel!), but eventually you'll be watching TV, with your feet propped up on an ottoman, inside your very own home.

The first step is finding out how much you can afford. Find out what your credit is by accessing your credit report. If you have any outstanding problems, clear them before heading over to a lender. If you have a good credit rating, this will translate to lower interest rates. If your credit score is at least 680, lenders will take a liking to you. As a prime candidate, you would qualify for a low mortgage rate, which is always an excellent thing.

When thinking about a price home, be realistic. Yes, pricier homes in expensive neighborhoods are great, but not if you're a commoner who has to work hard for his money, as opposed to those who throw balls and make passes for a million bucks. (Not fair, is it?)

Become pre-approved for a mortgage from a mortgage broker/lender. Settle for comfortable monthly payments. (In an ideal world, mortgage payments should never be higher than thirty-six percent of your total income. Anything more than that can result in much financial stress, and an eventual "For Sale" sign on you front lawn. Be aware of this!) Once you are pre-approved for a loan, you will know exactly what your price range will be to begin shopping for real estate.

A happy couple in front of their new home.

Credit: calgaryhomefinder.ca

Copyright: calgaryhomefinder.ca