7 Strategies for First-Time Home Buyers: Tips from Jared Gibbons, Leading South Surrey Realtor
1. Secure a Genuine Pre-Approval:
When you are thinking of becoming a First time home buyer, don’t rely solely on online calculators. A real pre-approval involves an evaluation by a potential lender. Your credit score, income, and down payment nature matter in this process. Remember, mortgage approval doesn’t guarantee approval for your desired home.
2. Understand Your Financial Picture:
First-time buyers often have smaller down payments. Set aside funds for a house inspection and unexpected repairs because homes require maintenance. Ensure you have extra funds to handle additional costs beyond the down payment and mortgage.
3. Avoid Decisions Driven by FOMO (Fear of Missing Out):
For first-time home buyers, rushing into a purchase due to the fear of missing out can lead to financial strain. Carefully assess your situation before making a decision.
4. Plan for the Future:
Consider how your life may change over the next five years, such as starting a family or career shifts. Evaluate the practicality of your new home for your evolving needs as a first-time home buyer.
5. Don’t Hesitate to Seek Help:
Many first-time buyers receive financial assistance from family members. Saving for a down payment can be challenging, and family support can bridge the gap.
6. Don’t Stress Over a 20% Down Payment:
While a 20% down payment may avoid mortgage default insurance, it’s not always necessary. Insured mortgages may offer better interest rates, offsetting insurance costs. Explore using your RRSP for down payment savings but be aware of the 90-day requirement.
7. Explore Mortgage Options:
Understand mortgage fundamentals, such as types, terms, and amortization. Choose between fixed-rate and variable-rate mortgages based on your budget and property plans. Our Partners at Thrive Mortgage are always very helpful!
In summary, buying a home is a significant lifetime investment. The rules for first-time home buyers can change over time. These seven practical tips, provided by top South Surrey realtor Jared Gibbons, can serve as a reliable guide for navigating the evolving landscape of first-time homeownership. They will help you make informed decisions on your journey to owning your dream home.