Congrats on your home buying journey! It's such an exciting adventure (and stressful might I add) but with spring on the horizon, I'm here to share some secrets that will help make the process that much easier. My fiancee aka foodie partner-in-crime and I finally bought our dream house six months ago and we couldn't be happier.
While I did a lot of research prior to us house hunting, some couples are so excited at the moment that they lose focus on reality, so today's blog is all about avoiding those hidden costs or unknowing information that could potentially creep up on you. And folks, if you haven't clued in - buying a home isn't easy or cheap. Buyers can be tapped out emotionally and financially before they can even call the home their own.
While I did a lot of research prior to us house hunting, some couples are so excited at the moment that they lose focus on reality, so today's blog is all about avoiding those hidden costs or unknowing information that could potentially creep up on you. And folks, if you haven't clued in - buying a home isn't easy or cheap. Buyers can be tapped out emotionally and financially before they can even call the home their own.
Best tip I got: Buy with your head, not your heart.
TIP #1: SET A BUDGET
I highly recommend evaluating your financial situation, ensuring you have set a budget to see how much you can afford and staying mindful of your budget. If you're looking for a mortgage and you have been pre-approved for an amount, know that you don't have to go all in. This is your safeguard as it definitely gives you an edge when buying your first home.The ouch: Aim to save for 20 percent down payment.
TIP #2: THINK ABOUT YOUR LIFESTYLE
This will ultimately make or break if you can actually afford your dream house. Crunch the numbers yourself and see if you are able to make payments for the mortgage, utilities, gas, cable, internet, house tax, child care expenses, retirement savings and the cost of your lifestyle. Do you enjoy dining out? Do you enjoy drinks after work? Or indulge in a daily latte in the morning? So remember that even if the bank approves you for a $400,000 mortgage, that doesn’t mean you can actually afford it. You'll have to make sacrifices along the way. It's better to look at the numbers ahead of time to avoid any unsettling situations in the future.TIP #3: PICK A GOOD REAL ESTATE AGENT
Find a good real estate agent that you will 'click' with. You are putting your lives so to speak in their hands to help you find your dream home, so make sure they communicate in the way you do, that they know your wants and dislikes, and that they have a good understanding of the market.Psst.. our realtor was amazing! If you're in the Kingston area, I'd highly recommend Callie Warren! I live and breath social media so seeing a realtor so active and sharing listings through different channels was a big win.
TIP #4: GO BEYOND MLS
I'll admit I'm a millennial - I use Instagram and Facebook on a daily basis so don't limit your house hunt to MLS or real estate agent websites. Use social media to help you find a home and save time.TIP #5: SPOT THE ISSUES WITH AN INSPECTOR
During your house tour, you may not notice underlying problems but that's where hiring a licensed home inspector will be your saviour and give you peace of mind that you’re avoiding any major issues before buying. But don't forget about checking common items such as opening windows, looking under couches or rugs for scratched floors, switching lights on and running the taps.The ouch: ~ $450
TIP #6: THERE ARE CLOSING COSTS
Along with saving for your down payment when purchasing your dream home, you'll have to take into consideration the money required to close your mortgage. From home inspection fee, legal fees, property transfer tax, land transfer tax, title insurance and the list goes on! But don't worry as there are some great rebates for first-time homeowners at the time of the purchase and come tax season. So your lawyer and accountant will be a wealth of knowledge.
TIP #7: RESEARCH & PICK A MOVER EARLY
Moving was my least favourite part of buying a home because A) all the stuff you have to pack B) dealing with a pardon my language shitty a moving company. Do your research and request quotes from multiple movers, as the expense of getting your belongings into your new home can be quite costly based on the distance and the number of items you own.The ouch: Starting at ~$400
TIP #8: SLOW AND STEADY ON THE NEW FURNITURE
Once you’ve saved for your down payment and budgeted for closing costs, don't forget to set aside a buffer to pay for what will go inside the house. If you're a couple, you'll be combining two lives into one space so communication will be your best friend to settle on a style that you both agree on.Remember this is your fresh start, take your sweet time furnishing your home with quality pieces. Focus on basic items first rather than spending thousands of dollars buying new furniture. Also, why not try finding cute items on Facebook Marketplace or antiquing?
TIP #9: LET'S PROTECT YOUR HOME
Before you sign on the dotted sign, know that home insurance is a required step before you can even get your keys. It mitigates risk for the property and down the road protects you from potential risks that could happen such as fire or theft.
The ouch: Starting at ~ $500 per year
TIP #10: SAY HELLO TO PROPERTY TAXES
When you become a homeowner, one of the least exciting things you'll have to deal with is property tax. But hey, the upside is that it allows your city to deal with snow removal, garbage pickup and the list goes on.
Thankfully the city I live in has a monthly payment option rather than having homeowners fork out a large sum twice a year.
The ouch: Starting at ~ $1000 per year
I hope this will help you in your journey to finding your dream home!
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