Pre-first time home buying

Hi there pre-first time home buyer! 

I say pre-first time because you haven't bought anything as of yet and I want to help give you some tips to get started in the pre-buying process.

Step 1: Know that you want to own your own home at some point in the future, check! Now start stashing away some cash for your downpayment. My advice, open a tax free savings account and start putting a couple hundred here and there into that account. Or you can be more diligent and ask your banking professional to do automatic deposits into your TFSA or savings account each paycheque to ensure you don't touch that money. Out of sight out of mind.
Think about the little things like your daily coffee costing $2, times that by 1 year and you already have $730 to put in your "down payment account". If you can't live without coffee, buy yourself a small coffee maker at home, and buy coffee to fuel it. This will cut down your costs daily and help save for your biggest and best purchase, a home!
Remember, the longer you have to save, the more money you are able to put down, which puts you in a better position. So start early if you know you want to own a home.

Step 2: What can you afford? This can be done by going to get a pre-approval. If you want to stick with the bank, seek out your mortgage advisor, if you want to explore more options, you can seek a mortgage broker. Your real estate agent can direct you to the right services when the time comes. The mortgage advisor/broker will factor in what you currently make, any debt, etc and figure out your max budget for your home. This step has a number of little steps so best to chat with a mortgage professional sooner than later.

Step 3: Start thinking about must haves - need garage for all toys, need an ensuite, need 2 bedrooms minimum, those type of things. The must haves will help you narrow down the house you want/need. Then look in your budget for a home; you can set limitations and filters on realtor.ca or on my website www.homes613.ca, this is to make sure you don't fall in love with a house that is out of budget!
Also thinking about location: Rural vs. Town/City. Are you more into living in the country and having a good size lot for you to enjoy with your future pup? Or are you wanting the ease of knowing you can run in to grab the milk you forgot by walking or driving a minute to a store? Those are the fun things to think about but also thinking about water and sewer... in town you have the luxury of always having water 24/7, and having a sewer that never needs to be pumped. In rural homes you need to think about quality and quantity of well water, as well as having a secure pump and water treatment system in place; and always remembering to pump out your septic every 3-6 years. There are pro's and con's to both living situations but it is a personal preference on where you decide. More on that later. More on this topic in a later post.

Step 4: DO NOT and I repeat DO NOT do the following: a) get a new job mid-home buying! Your pre-approval is based on your current stats- current job, current debt, etc. If you go changing any of that, your pre-approval changes and could delay your plans. You need to wait a minimum of 3 months of being in a position, before being looked at for a pre-approval. So you can decide if you want to make the change and wait, or stick it out (if you can), buy the house, then change jobs if necessary but always make sure you can afford your bills!  And b) buy any big purchases on credit. I say this with extra caution because some people decide to buy a new vehicle to park in their new garage, and then lose out on their home purchase because of it. So don't do it!
You got that right, no changing of jobs and no big purchases!!

Step 5: Know that this process can be a bit stressful and that things move very quickly, but have faith and trust in the professionals you choose to help you through this. Pick advisors that you know you mesh well with, but also ones you know you can trust.

For more on the first time home buying process, you can email me for my free,
full package of information and advice. If you would like to chat about anything I am always here to help make things easier for you! 

Michelle Kennelly
mnkennelly@gmail.com
613-305-2400