Buying A Home In Vancouver: The Basics

Timing: Is Now The Best Time For You To Purchase Property

It might be exciting to get into the Vancouver market, but have you looked at all of the pros and cons of purchasing at this time? If this is your first home purchase, it's advised to take into consideration how drastically this purchase can affect your life.  A quality real estate agent shouldn't just try sell you a house. Their first goal should be to educate you on all the variables that homeownership involves and that you will need to understand in order to make the most informed decision. These variables can include things like current market trends, understanding mortgages, the impact home ownership can have on your credit, and the differences between owning and renting.

If you're considering purchasing a new home, you can think of it kind of like starting a family. Are you able to take on this responsibility? Are you ready to invest the time that it will take to be a successful homeowner? Are you ready and able to take on the new responsibilities even if something goes wrong?

Getting Your Finances In Order

It may seem pretty straightforward to get qualified for a mortgage, with some added benefits available to first-time buyers motivating them to get into the real estate market. This isn't necessarily a bad thing. However, sometimes people get qualified for lending that, in the end they might not be able to actually afford. When you are a homeowner, it is very different than renting. Renters have far less responsibility to worry about, the owner of the property is typically responsible for maintenance and repairs. However if you are the homeowner, you can no longer just reach out to the landlord if something goes wrong. You are now the one responsible to cover the cost of any repairs if something goes wrong.

Taking that into consideration, there are some great tools that buyers can access like cmhc's household budget, Debt Service and mortgage affordability calculator, mortgage payment that can help you determine the best mortgage and payment options for your budget. This can allow you to prepare yourself financially without breaking the bank should you come across repairs in your new home.


Choosing A Vancouver Home

One day, we might want to move into a home that is much more luxurious than our current living situation. However, one should be realistic about their expectations so that they're not let down. You should always look at your current living situation and question why you are considering an upgrade. Your goal might be to have an investment property that you can rent out and build equity in or you might be a young family who wants to establish some roots in a great family-friendly Vancouver neighbourhood where there are lots of amenities for your kids outdoors.

It's important to first think about what you need in a new home, then come up with a list of what you might want, as well as think about the long-term. Most mortgages will take more than a handful of years to pay off, after all. So consider where you could see yourself say, 10 years down the road but, this can help you choose whether you would like to purchase a townhouse, a condo or a detached home in a family friendly neighbourhood because we all know there's a lot that can change In the next 10 years!

The Buying Process

Anybody who is looking to qualify for a mortgage needs to make sure they have enough money for a down payment. The percentage that is needed for the down payment will really depend on where you live and who you've chosen for a lender. It's important to understand that the less money you are able to put down for a down payment, the higher the cost up the mortgage can be with regards to Insurance fees as well as the length of the mortgage term. It is always recommended to start saving as soon as you can so that you have the largest down payment possible.

After Qualifying for your mortgage, you will have a much better understanding of how much you can afford for your purchase. This will allow you to get a proper search set up to view only properties that specifically match your needs and wants list that is also in your budget. This is where an experienced real estate agent can really help. They will make sure you view all the active Vancouver real estate listings that match your search criteria and they will represent you when it comes to drafting up an offer and negotiating the best terms and price for you. 

Once you receive an accepted offer, your real estate agent will take care of all the legal documents that are involved in the transaction as well as helping you navigate the completion and possession dates. These can really vary from deal to deal depending on the sellers and buyers timeline. These are only a few of the details and variables that experienced realtors can help you take care of. 

Congratulations On Your Purchase!

Once you have an accepted offer, it's now time to plan your big move into your new home. You should be proud of your purchase, buying your first home is definitely one of life's biggest accomplishments! It's a very exciting time planning your move, deciding on how you want to make your new home feel like home. don't forget, that now even more important to build up your savings. You just invested a large amount of your money in your down payment so you will want to build those funds back up as well as create an emergency fund that is ready for you with any future repairs that your property may need.

Conclusion

I hope you find this article helpful, please keep in mind, it discusses the home-buying process on a very basic level. If you have further questions, feel free to contact me anytime.