5-Step Checklist for First-Time Homebuyers in Niagra Falls, ON
For some, being a first-time home buyer can be both an intimidating and frustrating experience when buying your first home. While the stakes are high, you cannot, in good conscience, make an impulsive purchase. You also can’t directly contact the selling agent of an online listing you have spotted and say, “Dibs!” Or could you give an offer on the first open house that you attend? There are tons of things to prepare yourself for while preparing before finally scheduling a showing and making a final offer on the home of your dreams.
In this article, we will discuss a 5-step checklist for first-time homebuyers to memorize when starting their search for a home in the beautiful Niagara Falls, Ontario, region.
Key Takeaway:
- Your Paperwork Needs to Be in Order
- Re-Check Your Credit Score
- Get Pre-Approved
- Draw Up a List of “Must-Haves” and “Would-Like-to-Haves”
- Hire a Trusted Real Estate Agent
Step 1. Your Paperwork Needs to Be in Order
Before you even fire up your computer and start looking at online properties, you should have all of your paperwork in order, especially if you have a plan to apply for a mortgage. Some documents will need to be prepared, including bank statements, the last two years’ worth of tax returns, any canceled rent checks, and the current pay stubs of your current lease renting. These documents are required by the mortgage officer later down the road when he is assessing the capability as a borrower. Gathering all the paperwork early can be a pain in the beginning, so get a head start on the competition.
2. Re-Check Your Credit Score
The credit score that you have is one the biggest factors when it comes to securing a loan. Lenders will look at the number to determine whether you are creditworthy and will influence the down payment, interest rate, and other terms regarding your mortgage. It will help you to know what type of loan you can get, as many types have different credit score requirements. Check to see what your credit score is sitting at, and obtain a copy of the report before looking at online real estate properties. If you think that there are errors present in your report, you can report inaccurate information by contacting the credit bureau. For bad credit, take all necessary steps to boost your credit score so that you will be more confident in getting a more decent loan term when looking for an ideal home.
3. Get Pre-Approved
Try to hold off starting your home search without a mortgage pre-approval. This type of letter will let you know how much home you can afford and show sellers that you are entirely serious and have what it takes to buy. Prospective lenders will conduct a review of your employment or credit, income, and assets before issuing a pre-approval, so assembling all the required paperwork beforehand will save you all the hassle in the end. Getting pre-approved for a mortgage will allow you a competitive advantage while speeding up the homebuying process. With the historically low mortgage rates today and low housing inventory, it has never been more crucial. Having a pre-approval before finally making an offer will make you stand out to the seller because it allows them extra security that the deal will be done.
4. Draw Up a List of “Must-Haves” and “Would-Like-to-Haves”
The next step is to take into consideration your values and lifestyle before shopping for real estate. Create a list of all the features in a home that you would like and categorize them under two categories: must-haves and would-like-to-haves. The preferred square footage, number of bathrooms and bedrooms, and ideal neighborhood features will be included in your negotiable elements. These items are crucial to you and should be followed by ones that would be nice to have, like a home office, an outdoor patio, and other features that are as important for you and your family.
5. Hire a Trusted Real Estate Agent
Lastly, you should not go through this process alone, especially during the age of the new normal, working efficiently with a trusted real estate agent who can help you in a position to act fast when you are ready to move. Find a good realtor who has plenty of knowledge of the area or neighbourhood, especially if trips outside are limited.
Bottom Line
Once you have closely studied the home buying checklist, you are ready to get the ball rolling! Start with a close overview of today’s mortgage rates to figure out what you can and can’t afford. Use this guide to explore how you can easily get home by following these five simple steps on a checklist to find the home of your dreams in Niagara Falls. Trust your real estate professionals at Hendricks Team Realty to guide you in finding and settling down in your dream home in the many beautiful, thriving neighbourhoods in Niagara Falls, ON, today.