Steps to Buying Your First House
Purchasing your first property is a big deal!
You need to make sure that you are prepared for this big step.
Based on my 20 years experience in banking I have detailed below the top 6 steps to take before you start property shopping:-
Step 1: Determine your down payment
How much money do you have to put towards the down payment of the property purchase.
By having a down payment you can reduce the overall mortgage amount and cut back on the amount of interest you pay over the life of the loan.
Additionally by determining how much your down payment will be you have an indication of which banks you should approach.
Banks offer different percentages of borrowing and as such determining this amount will also confirm your Bank of choice.
Step 2: Request mortgage pre-approval
After you have determined the down payment you have an idea of which banks you should approach.
Set an appointment with a Loans Officer and get your preapproved mortgage amount.
It answers the most asked question - How much house can I afford?
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Step 3: Plan for additional cost
You need to plan for cost associated with securing a mortgage.
The below is an example of some of the most common expenses:-
Step 4: Find your home
It is best to work with a real estate agent when you are looking for a property.
Find a realtor that you can trust and share your property preferences.
Sometimes realtors have information on properties that have not even hit the market as yet.
Step 5: Make your offer
You can discuss with your realtor and make an offer to the seller of the property.
It might take some time for both of you to come to an accepted offer amount.
Ensure that you take all factors into consideration when determining this figure.
Step 6: Take out a mortgage loan
Using the preapproved mortgage amount let the Loans Officer know that you are ready to get the process started!
Do not hesitate to contact me directly if you need any assistance with the above.