Are You Ready For Calgary Home Ownership?
Owning a home may be your dream, but in order for the purchase to be the happy and satisfying experience it was meant to be, you need to ensure that you are financially and mentally prepared for the responsibilities that come with it.
Some people have a notion that home ownership is like renting, but with the power to have pets and paint the walls whatever colour you like. However, while these privileges are available to homeowners in most municipalities, they come with the responsibilities of a mortgage, taxes and home maintenance. Preparing for home ownership requires you to take critical stock of your finances and your expectations.
Questions for Prospective Homeowners
Are you ready to buy?
Owning your own home is about more than just being able to decorate any way you like; it's about being prepared to maintain your home over the years, realizing that part of your income and time will go towards repairs and maintenance. It's about being willing to take the risks of home ownership with a realistic expectation of the rewards.
How much can you afford?
It can be discouraging to find that your salary won't stretch as far as the home you want to own. However, sacrificing a huge part of your income just to pay the mortgage can very quickly make home ownership a burden rather than a point of pride. It's better to buy a modest home now and look at purchasing your "dream home" in a few years.
What is your debt-to-income ratio?
This is something that lenders take very seriously. Your overall debt should not be more than 40% of your income, and your housing debt should not be more than 32%. What 32% of your income will buy depends on where you want to live. In rural areas or small towns for example, it can buy a very comfortable residence or ample acreage. In highly sought-after urban areas, however, it may not even buy a 400 square foot bachelor suite.
What do you want?
Do you like the idea of cleaning your own gutters? Do you shudder at the thought of lawn care? Would you rather just pay a fee every month and have everything done for you? Would obeying rules about when you can have your garbage cans out bother you, or do you want to live in a neighbourhood where everything is 'just so'? The answers to these questions can help you narrow down the search for the right type of property for you.
Calgary Real Estate Alliance Can Help
You need a good agent who will work hard for you. Our real estate team is dedicated to helping you find the right home, at the best price. We want you to find the home that will make you happy and successful in Calgary real estate ownership.
When you hire us to help you buy your first home, we want to know what you want and how much you can afford. Then we'll find a way to merge these two priorities and find a residence that you'll enjoy owning.
Keep your objectives in mind when visiting a home. Sometimes the idea of owning a home can overwhelm your practical sense, so keep your feelings in check. Keep a list handy of the features that you need and want in a home, and judge each home by the list instead of by details that could distract you from your goal. When you're alone with your agent, you can go over the pros and cons of each home. We can help you stay on track while still keeping our eyes out for a great property.
Engage the services of a good real estate lawyer. We can recommend several lawyers in Calgary who might be a good fit for you. Interview them to ensure that you get someone you can work with. The legalities of transferring land ownership can be daunting, and a lawyer can be your best defense against future legal troubles. A good lawyer can charge several hundred to over a thousand dollars for their services, but the thousands of dollars saved in legal fees later on makes this a good expense.
Make the offer. This can be a maze of "buyer", "seller", "chattels", "deposit", and "completion". We'll prepare the paperwork and go through it with you before submitting it. Remember, the seller may reject or counter your offer, so be prepared that we may need to do some negotiating before coming to terms. Also, you will have to write a deposit check to the seller's broker as part of your offer to purchase, the amount will vary depending on the home but expect for upwards of $5,000 which will be cashed and applied towards your downpayment upon a firm sale agreement. Sound like a lot of information? No need to worry, we will be right there to help navigate the process.
Get all necessary inspections done. A home inspector will check the major components in your home, such as heating, electric, plumbing, and roofing. They will look at the outside of your home to judge its integrity and the inside to check for leaks or moisture. This is a crucial part of the home purchase. Inspections will cost a few hundred dollars, but again, this can more than worth it in the end. There are several inspectors in the area that we'd be happy to recommend.
Do a final walkthrough before closing the deal. This is a term that we will write into your contract and as your agent, we will be there to do this with you to make sure that everything agreed upon is completed prior to the final signing.
From the first interview that determines your requirements to the moment that you receive the keys, we can help you with the complicated process of buying a home. Don't hesitate to contact us to find out more about how we can make the home buying process easier!
Interested in More Information about Calgary Real Estate?
Please give us a call at 403.253.7774 or contact us online.
We would be happy to assist you with all of your real estate needs.
Disclaimer: Information herein deemed reliable but not guaranteed by CREB®.
Listing information last updated on October 21st, 2017 at 1:30pm MDT.