Becoming a homeowner for the first time, while exciting, can be a bit daunting. Buying a home is a big commitment and is something that requires careful planning and consideration. The best thing you can do to calm the first-time home buying anxieties is to be as prepared as you can before you make any decisions. Plenty of research and budgeting is key when starting the process of buying your first home. Here’s what first-time homebuyers need to know!
Related: The Great Adventure of Building a New Home
1. Mortgages and Down Payments
One of the first steps in the process of buying a new home is making sure you can afford all that comes with homeownership. Most people begin by getting prequalified for a mortgage, this will give the buyer an idea of how much they’ll be able to afford and how big of a down payment they can put down.
The mortgage is just one of the many expenses that you’ll need to consider before purchasing your first home. You need to factor in property taxes, interest payments, insurance, and any potential maintenance and repairs your home might require.
A mortgage is dependent on the buyer’s lifestyle, assets, income, and debt. When getting approved for a mortgage, make sure you take into consideration any credit card, student loans, car payments, or other major debts you may have. You need to be sure you can handle a mortgage payment on top of all your other expenses.
The down payment you put down can be anywhere from 5-20 percent of the cost of the house. If you find that you’re struggling to come up with a down payment, maybe now isn’t the right time for you to become a homeowner. However, there are many options for this sizable amount of money and many mortgage lenders and banks offer resources and programs to assist first-time homebuyers entering the housing market.
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2. Working with a Realtor
In order to explore all of your options, you may want to enlist the help of a real estate agent to help you find your first home. Buying a home can be stressful and frustrating; a real estate agent can ease some of the tension and anxiety you feel throughout the process. As long as you work with someone who will be dedicated to finding exactly what you’re looking for and something you’ll be able to afford, you’ll be able to enjoy your first home-buying experience.
If you decide to explore building a home, you’ll be able to work directly with the builder sales team to provide you with model home tours, guide you through your lot selection and help you through the entire purchase process – along with all the paperwork that is involved! When you build a Sifton home, once you sign your offer, you’ll work with our building and design team to help bring your dream home into reality!
3. New VS Used Homes
When buying a home for the first time, there are several options of housing styles and designs to choose from. One of the main decisions people need to make is whether they want to build a brand new house or find a well-loved older home.
Resale homes have a certain charm that many first-time home buyers are after. You may need to do a little digging to find exactly what you want, but with ample research and the right real estate agent, you’ll be able to find a home perfectly suited to you.
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The other option is to build a brand new home. While this option may seem more costly initially, it can potentially save money in the long run. This is due to the ever-increasing use of energy-efficient building features used in many new developments. New homes are a great option for those who are interested in personalized, modern home designs in new neighbourhood communities.
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Whether you’re planning on buying an established home or building a new one, the process can be an overwhelming one. At Sifton Properties, it’s our goal to make your home building experience effortless and enjoyable. With incredible new build homes in communities in London and beyond, you’re sure to find a home that is perfectly suited to your lifestyle.
Though buying a home for the first time is a big decision, don’t let the daunting task scare you. With the right tools, resources, and plenty of research and preparedness, you can have an incredible experience finding the perfect place to call home.
Learn more about building a new home with Sifton today!
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