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Are You Prepared to Buy Your First Home?

Written by Posted On Friday, 23 September 2016 09:45
Are You Prepared to Buy Your First Home? Are You Prepared to Buy Your First Home?

If you’re about to purchase your first home but aren’t quite sure if you’re ready, this is a sign that you may not be. Rather than rushing into things simply because you want to own, it’s best to take time to prepare yourself, including figuring out how much mortgage you are able to afford. Below are a few questions you should ask yourself in order to determine if you’re ready to launch into buying. Beyond helping you understand more about this major investment, the answers can give you an idea of things you’ll need to do to get yourself ready.

Have You Gone Through the Pre-Approval Process?

Pre-approval is hands down one of the most important steps you can take towards buying a home. It’s important for many reasons, beginning with the fact that it will ensure you’re in a good financial position to actually purchase a home. This is due to the fact that lenders verify your income and financial information to determine how much of a loan you can afford. Once you have this, you can shop more confidently knowing approval won’t be out of reach.

Are You Planning Major Purchases?

If you’ve been waiting to make major purchases in addition to buying a home, such as buying a car or financing another vehicle, you should hold off a bit longer. Once you have pre-approval finalized, any major financial decisions can affect your credit score. Unfortunately, this can mean you won’t be pre-approved for the same amount that you were before or you may not even be approved at all.

Do You Know What You Want in a Home?

One of the biggest advantages of getting pre-approval done before you search for a home is the fact that it will tell you how much you’ll be approved for once you’re ready to buy. Of course you can shop under this number as well, depending on what you’re comfortable with. The best part about having this number is being able to narrow down your search for a home. For example, with a clear budget in mind, you will know that you may not be able to afford the 5-bedroom home in the nice neighbourhood that you had in mind. Instead, you may have to decide if you’re willing to sacrifice the neighbourhood in order to have the number of bedrooms or square footage that you want.

Are You Prepared to Negotiate?

While your real estate agent will certainly help you negotiate for the home that you like, you can help with this as well by getting pre-approved for a mortgage. Sellers are more willing to work with buyers who have this because it shows they can afford the home and are serious about buying. In addition to this, pre-approval can mean being chosen over other bidders who did not come prepared with this same document.

Do You Want to Lock in an Interest Rate?

One thing a lot of buyers don’t realize is that pre-approvals from most lenders come with 90-120 guarantees on interest rates. This means the rate that you’re given will not increase within that time, although interest rate decreases in the market will be honoured. If you don’t want to be shocked by a higher than the anticipated interest rate, this is one of the best ways to protect yourself.

After asking yourself these questions, it will be clear why getting a pre-approval is so important and one of the first things you should do when buying a home. Fortunately, there are many more advantages of doing so, making it all the more worth it!

Additional Resources About Mortgages

Over at Scoop.it you can find many great advise for homebuyers. There are a few other websites available to receive additional resources such as Listly that has a great collection of tips for homebuyers.

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Joe Samson

I have lived in Calgary, AB since 1991 and have started working in real estate in 2005. Up to date, I have helped hundreds of satisfied buyers and sellers to successfully complete their real estate transactions. 

Initially, I have fallen in love with real estate even before I’d ever thought about becoming a real estate agent. My early years were fulfilled with buying and selling revenue producing properties. As the years passed, I have become more attached to dealing with real estate and as people got to know me and a little more of what I have done, I have naturally transitioned into helping others to build a path to their financial success by investing in real estate. And the rest has become the story of my life…

This may shock you, but my main focus isn’t on selling real estate. I mostly put my attention toward online marketing which ultimately helps my sellers to find a buyer for their property and to get the maximum possible sale price. 

In the 21st century, marketing is immensely different then what it used to be 10 years ago. I find it imperative to stay ahead of the competition and figuring out what works and doesn’t is the backbone of my business and it allows me to generate the best results for my clients. 

I also love providing help to my buyer clients by offering them a state of the art website and access to all homes for sale in Calgary, AB. 

I also believe that by answering my client's question in advance helps me to provide the best experience and I intend to achieve that by keeping my Calgary real estate blog up to date on a regular basis.

I service the greater Calgary area and its surrounding suburb communities. Some of the most popular communities in South Calgary that I service are Evergreen, Silverado, Chaparral, and Cranston. West Calgary and City Centre Calgary also contributes a great deal to my business area. Other parts of the city such as Southeast Calgary where many new homes are being built have also become a great joy to work in while helping clients finding their new homes. 

One of the principal foundations of my business model is that I’ll always tell you what you need to hear versus what you want to hear. Your interest is guaranteed to be more important to me than anything else. Integrity is the lifeline of my daily interactions with others and our mission is to “honour our clients with our world and do what we say we are going to do... when we say we are going to do it.”

If you’re thinking of buying or selling a home in the Calgary area, please reach out to me anytime and I’d love to help you to navigate you through your home buying journey.


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