Purchasing your first home is very exciting! And very daunting! You are likely about to make the most significant investment of your life so far. Set yourself up for success by partnering with a skilled and knowledgeable Realtor®, peruse our Guide For First Time Homebuyers, and ask yourself these very important questions. Then get ready to find your perfect first home and begin your real estate journey.
If you are looking to buy your very first home, The Eklund Group has the market insight, in-depth knowledge of Calgary communities, and the negotiating confidence to ensure that your investment is a smart one. Contact our team of Realtors® skilled in helping first time homebuyers find the perfect place to call home. Call 403-863-7434.
Questions For First Time Home Buyers
How Much Can I Afford?
Access online tools that can provide standard affordability guidelines and speak to your lender who will analyze your financial snapshot and tell you precisely how much mortgage you qualify for. But you also need to ask yourself how much you can really afford. In addition to your monthly mortgage payments, you will also be responsible for taxes, utilities, maintenance, and insurance. Although owning your first home may mean you are going out less often and staying home to enjoy your new pad, you don’t want to be house poor. An experienced Realtor® can help you navigate this fine line between how much you can borrow and how much you can really afford.
What Are My “Must Haves”?
Very rarely can first time homebuyers afford a home that has EVERYTHING they want. A smart task to undertake when beginning your home search is to make a list of “Nice to Haves” and “Must Haves”. Hardwood floors, new appliances, double garage, and quartz countertops may seem like must-haves, but when you have a limited budget, consider that these things can be upgraded down the road. (Of course, sometimes things like a garage can be a must-have for your job or for accessibility reasons). More important must-haves are the number of bedrooms, location, and neighbourhood amenities. These features cannot be changed (or not changed easily) and it is critical to leverage your budget to make the best choices when comparing your wants and your deal-breakers.
How Long Do I Plan To Live In This Home?
It is not likely that your first home is your forever home. Of course, you don’t know for sure where you will be in five years (new job in a different city, baby on the way, rebuilding your life after a breakup), but it is smart to take a moment and consider how long you expect to remain in the first home you buy. To maximize your ROI (return on investment), you could choose to purchase an inner city apartment with great potential as a rental property down the road, a fixer upper in an up and coming neighbourhood, or you just might decide to purchase a home you can grow into and renovate into your forever dream home over time.
What Additional Costs Should I Expect?
When you start to budget for home ownership and the ongoing costs associated with being a homeowner (like insurance and taxes), you should also consider the costs associated with the purchase and possession of your first home. Although these are mostly one-time fees, they can add up quickly and tack thousands of dollars onto your purchase price. Additional costs you may be required to pay include:
- Home Inspection: $500-600
- Bank Appraisal: $300-$500
- Condo Document Review: $500-$600
- Legal Fees: $1000+
- Title Insurance: $300
- Connection Fees: Variable depending on providers
- Moving Expenses: This could just be ruck rental, packing supplies, and pizza for helping hands- $300-$500, or into the thousands for full-service moving crews.
- GST: 5% on brand-new homes
- New Home Warranty: $2000
Are You Ready To Buy Your First Home?
If you are a first time homebuyer it can be tricky to navigate the complexities of your first real estate investment. Partner with a skilled and knowledgeable Realtor® who can help clarify the process and guide you to find the best first home for you.
The Tanya Eklund Group is committed to an elevated first time home buying experience through education and transparency. When you are ready to consider purchasing your first home, reach out to us first. We are happy to share our insight and our connections to get you started on the right foot. Contact us today or call 403-863-7434. We are not in the business of just selling you a house, but ensuring that we find the right home for you! Now, let’s go look at some houses!
Get a head start on the search for your first home by searching our Calgary listings here.
Find more tips for first time homebuyers here.