Home and lifestyle

Space is the breath of art
- Frank Lloyd Wright

Buying your first home; it will take almost as much planning and preparation as the wedding itself! You’ll want to take time to think through one of the first, most significant purchases of your life as a couple, allowing plenty of time to gather resources and do the homework. The reward will be the excitement of moving into a new home that’s completely your own, a place where you can take up your new life, no longer as bride and groom, but as a family.

home is where the heart is

Before you buy a house, think and talk about how prepared you feel in terms of financial and time commitment. Now is the time to think about your day-to-day income and expenses as a couple. With other costs you’re facing, miscellaneous expenses and credit or school loan debt, how much can you afford to make in mortgage payments? What are the additional costs that are involved when buying a home and moving, such as closing costs, property taxes, sales taxes, survey and legal fees? Remember that you may be approved for a more expensive house than you’re comfortable with paying for, and only you can decide what you can handle in terms of payments and costs.

If you do decide to buy, the first step is to obtain your credit report and make sure all is in order. The major credit bureaus, Equifax and TransUnion, will investigate any claims you make in writing if you see an error on your report. It can take time to resolve errors and discrepancies on your credit report. Credit reporting mistakes are common and can affect your credit scores negatively, which in turn may limit your mortgage options. Wait until after you’ve closed on your house to purchase furniture or that new car you’ve been wanting; it will just add more debt to your profile and possibly lower your credit score.

fixed or variable rates

Buying a home is an intensely emotional decision; don’t wait until you’ve fallen in love with the retro bungalow with the hardwood floors to research mortgage options – do it at least six months before you start looking. The two most common types of mortgages are fixed rate and variable rate. A fixed rate loan usually has a life of 5 to 10 years. Variable rate mortgages are ideal for homeowners who only want to stay in their homes for five years or less. Variable rate mortgages start out with lower payments and have been quite effective at building wealth for first time buyers.

Pre-approval is the next step. The lender, whether you’ve sourced out a bank, credit union or used the services of a mortgage broker, will pull your credit reports, verify income and employment, and if all is in order, issue a pre-approval letter. This is the key that will unlock the door of your first home.

Another question to ask yourselves: how much can we afford for the down payment? How much are we required to put down? This will all be examined and explained during your pre-qualification meeting.

negotiating fine points

The real estate agent is another important factor. A good realtor doesn’t just help you find a great home; they’re qualified and experienced negotiators and have a sharp eye for the fine print. In most cases the seller of a home pays your realtor, so having a realtor to assist you just makes sense.

Researching your future neighbourhood is one of the best things you can do; knowing about property taxes, environmental issues, neighbourhood crime levels, school locations and any future development nearby will make it much easier to make an informed decision on a house.

If you’ve found your dream home and are ready to make an offer, you and your agent will fill out a purchase agreement stating your bid, proposed closing date, and any contingencies/conditions, such as an inspection of the home. Your offer will be presented to the sellers, and the negotiation will begin! The sellers may counter offer, or there may be other offers on the table. Having a full-time agent really pays off when there are multiple offers on the home of your dreams. It’s a complicated process, but definitely an exciting one.

Best of all, you’ll feel great knowing that your future will be spent in a home that, no matter how long you stay, will always be the first one you found together!

Prev: Photography and portraiture | Next: Décor and rentals