Get Help Buying Your First Home

The problem most renters face isn’t the ability to meet monthly mortgage payments. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulating enough capital to make a down payment on something more permanent. But saving for this lump sum doesn’t have to be as difficult as you might think.

Talk to a mortgage broker or a Realtor about the different possibilities that could transition you from renting to owning. These conversations don’t cost you anything, and come with no obligation to actually buy. Take the time to do the research: you might be surprised how affordable home ownership actually is!

You can buy a home with much less down than you think.

There are some local or federal government programs (such as 1st time buyer programs) to help people get into the housing market. You can qualify as a first time buyer even if your spouse has owned a home before as long as your name was not registered. Ensure your real estate agent is informed and knowledgeable in this important area and can offer programs to help you with your options.

You may be able to get your lender to help you with your down payment and closing costs.

Even if you do not have enough cash for a down payment, if you are debt-free and own an asset free and clear (such as a car), your lending institution may be able to lend you the down payment for your home by securing it against this asset.

Create a cash down payment without going into debt.

By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a down payment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end.

You can buy a home even if you have problems with your credit rating.

If you can come up with more than the minimum down payment, or can secure the loan with other equity, many lending institutions will consider you for a mortgage. Alternatively, a seller take-back mortgage could also help you in this situation.

Talk to an Edmonton Realtor about the possibilities of buying real estate in Edmonton.

The First Time Home Buyer

Taking the plunge into home ownership for the first time can be an intimidating prospect, but remember that every home owner has been a first-timer at one point or another.

There is a huge emotional component that goes along with the change from renting to owning. You take on significantly more responsibilities, which can be intimidating. But you also enjoy all the benefits of making decisions yourself, without a landlord to run things by, and of being able to take complete pride in the results.

Buying a home is a serious process that requires research, dedication and time. The decision to purchase real estate isn’t one that should be made lightly, so it’s probably a good thing if you’re a little nervous. As a first time home buyer, you must realize that this is probably the largest investment you will make during your lifetime. It can be a life-changing event, which puts you in charge of property maintenance, repairs and taxes. Paying your mortgage is a more serious financial obligation than paying rent has been. But paying on time is a huge step in establishing credit for yourself that will be valuable to you later in life.

Perhaps you are still convinced that buying your own home is out of the question, at least in terms of cost. The idea of saving a down payment can be one of the most daunting things for many first time home buyers, and can run as much as 20% of the home’s purchase price. For a home with the modest price of $125,000, this 20% amounts to a seemingly huge $25,000!

Thousands of people have the same fears you do, and yet were able to afford a home of their own. There are many avenues to home ownership, even for those with limited means. Don’t give up just because you don’t have the down payment yet: the reward for persistence is home ownership!

Many renters could be homeowners today if they approached the house hunt with the same determination they bring to a job search, or even to shopping for a car! Because real estate seems like such unfamiliar terrain, people often take one look at the numbers and declare “I just can’t do it”.

The biggest hurdle you have to face as a first time home buyer is the down payment. Many can easily afford a monthly mortgage payment, which is often similar in cost to rent. But how do you come up with the $15,000 or $20,000 to use as a down payment?

It’s important not to get tunnel vision. When you think of a home, do you imagine an attractive single-family house in a good neighbourhood in your present community? If you know those homes are out of your price range as a first time buyer, this narrow view of what your ideal home is could be holding you back. There are some fantastic homes out there available in every price range!

 

There are some fantastic Edmonton Homes waiting to be snatched up by first time Edmonton Home buyers if you know where to look. By keeping up with Edmonton real estate blogs, you can ensure you know the current Edmonton real estate market trends and are positioned to buy at the perfect time.