Buying Your First Home
Buying your first home is a huge milestone and one that should be celebrated. However, the idea alone can be very overwhelming at first especially for inexperienced buyers. You maybe asking yourself; “Where do I start?” , “How much down-payment do I need?”, “What are all the costs associated with buying a home?”, “How long does it take to buy a home?”, “How do I get a mortgage?”, etc.
These are all great questions & there is no need to worry! Melissa offers FREE first time buyer information sessions in order to answer all your questions and more! Melissa will treat you to a Starbucks beverage, sit down with you and review the entire process from start to finish so that there are no surprises. Melissa will explain everything from the process, real estate jargon, contract details, how property inspections work, market information, property information, financing options, etc. Melissa's goal is to ensure you are fully educated before making any decisions to move forward. Also, Melissa can recommend the best mortgage experts, the best real estate lawyers, the best property inspectors, etc. Melissa really enjoys working with first time buyers and making the whole experience fun, informative and as stress free as possible.
So if you are tired of renting? Living with your parents? No matter what your current living arrangements are, there are many benefits to owning your own place. While buying a house requires commitment, down payments and other obligations the pro's almost always out weigh the con's.
Pro's of buying vs. renting (or living with your parents)
Access to fixed-rate long term loans with stable monthly payments: this means you can budget your expenses & make long-term investment plans. (No rent increases)
Homeowners have total control over how they use & personalize their home including pet ownership, decorations, renovations, expansions and other projects.
Building wealth. Eventually, you will pay off your mortgage/loan and no longer have a monthly payment obligation. Also, most financial institutions will allow you to borrow up to 80% of the equity of your home in the form of what they call a HELOC (Home equity line of credit) at low interest rates which can be used to pay off high interest debt or purchase investments, etc. When you rent, you are paying off your landlord's mortgage.
Potential for revenue. As a home owner, you can have roommates, potentially put in a secondary suite, rent the garage, etc. to help pay the mortgage.
Stepping stone. The first home you buy is often called a “starter home”. Eventually, you will need a bigger home or even relocate to a different town/closer to work. After several years of being in your first home, assuming you have made your regular payments without re-financing and your property has appreciated. (Appreciation value for example would mean: if you bought the home for $300,000 after 5 years, you could sell it for $320,000. That would mean it had appreciated by $20,000.) Hopefully the property you bought went up in value. Then, this will help you upgrade to a bigger home because you will have sufficient equity to use as a bigger down-payment.