YOUR GUIDE TO
​                 BUYING A HOME...

Purchasing a new home is a big step, especially for first–time buyers. Home ownership means you no longer pay monthly rent for the roof over your head. You can do what you want with your home (within reason). When you leave, you can sell it to recoup the purchase price and - with any luck - earn a profit too.

Buying real estate is the quickest way to create wealth. A home is an investment.  It takes more than the down payment to get you through the door of your first home. Home ownership comes with a slew of disadvantages, responsibilities, and downright headaches.

So before going any further, consider whether your lifestyle and finances make home buying a smart move for you.

STEPS TOWARD THE ROAD OF HOME-OWNERSHIP:

CONGRATULATIONS! You have decided to buy a new home.
When buying, consider the closing costs and future expenses that come with any property. So your first step, even before you start the actual hunt for a property, should be to get your financials in order.

In general, you need to come up with enough money to cover three costs:

• Earnest Money / Contract Deposit - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house.
• Down Payment - is a percentage of the cost of the home that you must pay when you go to settlement or closing or in other words, it is the amount of money the you must produce for the lender to approve the loan on the home.
• Closing Costs / Settlement Cost - the costs associated with purchase of the home and are typically between 3-6% of your loan.

GET PRE-APPROVED
You probably have a firm idea of what you can afford. The size of your down payment will also determine how much you can afford. For a more accurate figure, get pre-approved.
When shopping for a mortgage loan it is better to speak to both, a mortgage broker and a lender and get pre-approved by either one. They will look at your income, your debt and your credit to determine the kind of loan that is best for you.

• Mortgage Broker - acts as an intermediary (or a middle man) between a lender and a borrower. They have access to numerous lenders that offers a variety of loan programs and will match you to a lender that better fit you and your situation.
• Lender - will issue the loan directly to you.

USE A TRUSTED REALTOR: Don't buy a home without professional help.

With all the tools and advice available today ranging from books and magazines to online advice  or from your friend or family that bought a home in the past - it would be possible for you to buy your home almost completely without the aid of a real estate professional - That's not necessarily recommended.

This is likely the biggest financial decision of your entire life and you need the right realtor by your side. A realtor’s full-time job is to act as a liaison between buyers and sellers. This means that he or she will have easy access to all other properties listed by other agents and sellers. Both the buyer's and seller's agent work full time as realtors and they know what needs to be done to get a deal together. They will provide you with all the necessary documents needed in order for you to make your decision.

Negotiating is tricky business, realtors act as a "buffer" with negotiations with all parties throughout the entire transaction and they will help with all disclosures and paperwork necessary in today's heavily regulated environment.

Their knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be extremely valuable. Most importantly, your realtor will be there with you every step of the way to answer all your questions and address any concerns you may have. 

Now that you are informed, before you sign another lease, perhaps you should sit with a real estate professional in your area and discuss your options. Stop throwing your money away.  Find out if home ownership is right for you.