Buying a home for the first time can be nerve-wracking. Not only is it a major life change, but there are so many different facets to work through when buying a home. If you’re looking for homes for sale in Toronto, you may be searching for convenience to the city centre, but if you are searching Vancouver homes for sale you may want serenity with mountain views. In both scenarios, there will be a ton of details to work through, and it can be difficult to know where to start.
We have compiled a list of the must-ask questions any Canadian first-time home buyer should ask. This will give you some bullet points for your next meeting with your agent, and it may spark some questions you haven’t even thought about before. Follow along below, and you’ll enter your home buying journey like a pro!
Ask Yourself
Before you even consider asking your agent about certain homes, there are a few things you have to think through yourself. Lockdown this knowledge, and your home search process will be 10x easier for everyone involved.
1. How Much Mortgage Can I Afford?
A simple question, but perhaps the most important one. Unless you are buying a home with cash, you’ll need to get pre-approved for a mortgage loan. This sounds scary, but there are a ton of tools and services available that can help you figure this out. Here are some options:
- Speak With A Mortgage Lender – This is the best way to not only discover how much mortgage you can afford, but also get pre-approved for the loan. A mortgage lender is trained to gather together all your information and come back with how much you can afford to spend on a home. In addition, if everything goes smoothly in this first step, you can begin talks about getting pre-approved and keep in touch with your lender throughout the entire process.
- Use an Online Mortgage Calculator – This is an easy way to figure out how much home you can afford, but it won’t take you much further. Online mortgage calculators will give you a decent idea of how much your mortgage can be and can connect you with mortgage lenders and loan officers, but their usefulness stops there. After this, you’ll still need to get pre-approved and discuss getting a first-time home buyer loan with a lender, but it’s a helpful tool if you are simply looking out of curiosity.
2. What is my TOTAL Budget
In addition to the mortgage itself, you’ll want to consider any other expenses that will come with owning a home. Renovations, move-in crews, closing costs, and property taxes lurk behind that offer letter waiting to surprise you. Consider these, plus your mortgage, and assess how much you can completely afford.
Don’t forget, even while buying a home, you still are paying for daily expenses like phone bills, groceries, and gas, so don’t overshoot your budget and then be left in a sticky financial situation.
3. What Neighbourhood Do I Want to Live In?
This is one of the more fun questions to think through. When deciding where to live, there are a lot of factors at play: schools, parks, walkability, etc. You’ll want to do a little bit of research on the area you’re moving to and discover what you look for in a potential community. These are all factors you’ll be able to bring to your real estate agent when looking for a home, but it’s more efficient to have these preferences ready to go before your buying journey begins.
4. What Is My Limit For How Far I’m Willing To Commute?
This one isn’t complicated, but it’s crucial to how much you’ll be able to enjoy the location of your new home. If you aren’t willing to commute more than 30 minutes to work every day, that will guide both you and your agent on where to look for homes. You don’t want to waste time searching through houses that will leave you stuck in an hour of traffic at the end of the day, so get this situated beforehand and it’ll save you and your agent loads of time.
5. What Kind of Home Am I Looking For?
Are you downsizing? Need more room to grow your family? Do you require a large yard for your dog to roam around in? These are all critical things to consider when buying a home for the first time. Your agent will know where to find homes with big yards or smaller, accessible townhomes, but they won’t know that’s what you’re looking for unless you tell them. The home search process will be much more beneficial if you have collected all your housing needs beforehand.
Ask Your Real Estate Agent
Now that you know your budget and what kind of home you’re looking for, it’s time to meet with an agent. Buying a home for the first time definitely calls for a professional’s help, as they will be able to assist you with things you don’t even know you need help with. When your agent begins the search process, here are some typical questions you can ask to walk into closing day with open eyes.
6. How Much Will Closing Costs Come Out To?
This is a crucial question when budgeting for your first home. You don’t want to go through all of the trouble of putting in offers on a home only to find out you can’t financially afford the closing costs in addition to all of it.
Your real estate agent will have been a part of quite a few closing days, so they’ll have a pretty good idea of what to expect when the time comes. Here are some keywords to look out for when asking your agent this question:
- Appraisal fees
- Inspection costs
- Lawyer/notary fees
- Land Transfer Taxes
- Title insurance premiums
- Due diligence fees
7. What Are Ongoing Costs?
It’s no secret that home buying is expensive, but there are often expenses that pop up after closing that you may not expect. Even past closing day, there are still one-time and ongoing costs associated with buying and moving into your new home. While your real estate agent can’t give you an exact number for how much all of these will cost, they can give you an estimate.
Ask your agent about property taxes, home insurance, how much to expect on maintenance upfront, and utility setup fees. They’ll be able to help you figure out how much you should set aside for those costs upfront and annually.
8. When Was the Home Built?
This question is a classic, and your real estate agent may answer it before you even ask. Knowing the year your house was built is a great way to gain insight on any structural issues, maintenance problems, or outdated systems. Knowing these facts about your home will help you prepare if you need to replace appliances, the HVAC, or any other house features.
On the other hand, if your home is newer, it could still be under warranty. This typically only stands if the home