If you’ve been saving for a long time, building your finances, work is going well, and you think you’re ready to take that next step and start looking for real estate to buy, here’s a checklist to review. These are the things you should be thinking about as a first-time homebuyer and the questions to ask yourself before you start making bids on properties you like.

Know Why You’re Buying Your First Home

Buyers take on homes for different reasons. It could be as an investment property, a starter home and a way to enter the Toronto real estate market, or you may want your ‘forever home’ from day 1.

Here are even more resources that will help you find and buy the right home for you:

What’s Important To You About The Home You Buy

We all value different things. You may want a home in a specific location, with certain amenities, the potential for a certain layout, or with certain square footage. There’s also the factor of the price. Write out what’s a need, what’s a want, and what’s negotiable. Use these points when combing through GTA real estate listings looking for that perfect property.

Check Your Credit Score & Down-Payment

Your credit score is the top determinant in financing. With the best credit score, you get the best mortgage rate. Even if your finances are top-notch and your down payment has met the minimum, if your credit score isn’t quite there yet, wait and work on it. You can have a look at your credit score and history by ordering a free credit report from Equifax Canada.

Saving For A Bigger Down-Payment

Down-payment minimums suggest you, as a buyer, need only 5% of a property’s total value to obtain a mortgage. Long-term though, you can save thousands in interest by increasing your down-payment amount. Even if you’re looking for a home right now, you don’t have to rush it. Keep saving. Saving for a down payment closer to 15-20% is a first-time homebuyer’s optimal strategy.

Mortgage Payments And Fast-Rising Interest Rates

Take a property and use a mortgage calculator to map out the assumed monthly payments. Run some different scenarios. If interest rates were to rise. If you were to lose your job. If there was an unexpected house repair and your finances were to temporarily worsen. Know what you can tolerate financially and use this as a guide when looking at properties.

Obtain Mortgage Pre-Approval When Looking At Homes

Mortgage preapproval lets you know what you can afford. It gives you a firm idea of what’s possible and what you can offer. To get mortgage preapproval, shop around with a few different lenders to find the best interest rate and best terms.

Have Set Aside Long-Term Costs After You Move

There are lots of costs with buying a home but after that’s passed, you still have more costs to budget for. Homeowner association fees or condo fees, unexpected home maintenance, and property taxes are all examples of the sort of expenses one should incorporate into their long-term forecast.

Hire A Real Estate Agent in Toronto To Search Properties

A highly skilled, expert real estate agent can save you time in locating your dream home. They can help sort through the journey and answer questions, ensuring you have solid footing on something before moving forward with an offer. They can schedule multiple home viewings before you make any key decisions and help you avoid the pitfalls of trying to buy a home on your own.

Are you looking to buy a home in Etobicoke or Toronto? Take a look through premium listings at Adrian + Andrea.