As we mentioned in one of our earlier blogs this year, 2017 is shaping up to be the year when millennials attempt to buy their first homes. The home-buying process is arduous and tedious, but we've got a few tips to help out those youngsters (or anyone at any age really) so they know what they’re getting themselves into. Here are a couple of things to consider:

Is homeownership the right choice for you?

Not only is buying a home one of the most financially important decisions of your life, but it's also quite an emotional one. You have to be willing to take on all responsibilities and costs involved with owning a home. This includes, and is not limited to: mortgage payments, home renovations, repairs, and maintenance. Consider your future plans, current lifestyle, and financial stability before entering into the actual home-buying process.

You've decided to buy a home, but can you actually afford it?

After figuring out that home owning is the right choice over renting, it's time to really sort out the costs and crunch some numbers. Calculate how much you’re currently spending, and compare it to any debts you may have. Student loans, credit card debts, and car payments are some of the most common things to look at. Stack that up against your current spending habits and you'll have a pretty good idea if you can afford your first home or not. According to CMHC (Canada Mortgage and Housing Corporation), your monthly housing costs should not be greater than 32% of your gross monthly income. Housing costs include your mortgage payments, property taxes, and utilities. They also say that your debt and mortgage payments combined should not be more than 40% of your gross monthly income.

Ideally you should have a minimum of 5% saved for your first home mortgage down payment, but obviously the more the better!

Get preapproved!

Some real estate agents won't even work with you if you haven't been preapproved for a mortgage. There's nothing worse than having your heart set on a property and then finding out you can't afford it.

Have realistic expectations

It really is a rarity for first time homebuyers to hit the real estate jackpot right out of the starting gate. There will likely be parts of a house that will need to be updated or removed. Try not to fall for surface level vanity as opposed to things that should be more important in the decision-making process: like square footage, condition of the roof, electrical capabilities, etc.

Your agents are your captains

At Hearn Beaumont, we really hope to be the co-partners along with the homebuyer, especially when buying your first home. Choosing the right real estate agents not only makes the process easier, but we hope to bring our wealth of knowledge and experience to each individual buyer. We tailor our services to your needs and are with you every step of the way!

There are obviously many more things to consider when buying your first (or any) home, and we'd love to get the chance to chat with you about it. Come visit us any time and let us help you find your dream home today!