| The purchase of a first home is likely to be the biggest | | | | first mortgage to the limit (25 years plus). This will |
| one-time purchase in your life. There is a huge shift | | | | reduce the impact to your monthly cash-flow |
| from living with family or renting, to owning a home. It | | | | (mortgage + interest payments). Don't concern |
| can be an overwhelming experience and at times you | | | | yourself with paying down this FIRST mortgage in 5, 10 |
| may feel that you are barely keeping in step with the | | | | or 15 years. You expect to build equity in your first |
| process. We are now at a point in our lives where our | | | | home to apply to your next home purchase(s). |
| children are buying their first homes and we see the | | | | Remember item "2" - this is just your first home. |
| worry and signs of stress that make this FIRST BIG | | | | 5. Loans and Mortgages are a Fact of Life - settle into |
| PURCHASE such a momentous event for them. The | | | | the idea that you will likely have a mortgage and some |
| learning gained from buying a home and selling a house | | | | form of loans for most of your working life. Unless you |
| six (6) times - four different cities and two different | | | | come from "material substance", i.e. money, or have |
| provinces - has given us experiences that we share | | | | won the lottery, you will have large debt for most of |
| here with our children. The tips we can give you when | | | | your life. Accept that you are likely not to be in a |
| going through the mind-game process of buying a | | | | position to eliminate your mortgage until you have |
| home are insightful and are especially for people just | | | | worked 20-25-30 years. |
| like our children - first time home buyers. | | | | 6. Shop around for your mortgage - mortgage hunting |
| Every step along the way to becoming a property | | | | can be an exciting thing. Use it as a learning |
| owner brings a new rush of questions. | | | | experience. Bankers, Mortgage brokers and Real |
| This first-time home-buying torrent of questions can, at | | | | Estate agents all want to give you the money! Talk to |
| times, feel like you are fighting river rapids in a kayak. | | | | other first time home owners. Compare interest rates, |
| Just like novice kayaker, it is fear of the unknown in | | | | terms of mortgage and payout penalties. It's a |
| home-buying that creates the stress. | | | | numbers game - have fun with this financial aspect of |
| Can we afford this house? | | | | home ownership by familiarizing yourself with financial |
| Did we pay too much for this property? | | | | terminology and ask those 'mortgage financiers' to |
| Will we be able to make the monthly payments? | | | | break it down into layman's terms so you can |
| How will we pay property taxes and still have money | | | | understand it. |
| for any maintenance and renovation costs? | | | | 7. Separate an 'emotional' buy from a 'good' buy - this |
| Will we have a mortgage forever? | | | | ONE THING will be your biggest hurdle, causing |
| Notice most questions and fears are centered around | | | | additional stress between a couple in their hunt for the |
| finances. Not surprising then that this big purchase | | | | first home. Real estate agents may try to leverage |
| would cause you stress. Finances or Money is the | | | | (manipulate) this couple tension to their advantage - like |
| number ONE cause of stress in our lives. | | | | getting you to buy beyond your means or buy NOW |
| Our experiences can be the information that can help | | | | because other offers are on the table. As difficult as it |
| you steer the ship named 'Home Equity'. Equity - the | | | | may become, agree as a couple that if things are not |
| difference between the market value of a property | | | | right for you as a couple that you are willing to walk |
| and the claims (loans + mortgages) held against it. | | | | away from any house deal on the table. Be vigilant in |
| Here are a TEN pointers that helped us and can help | | | | reaffirming this point to each other. |
| you through the psychological aspects of buying your | | | | 8. Create a "Must Have / Would Like" list of features - |
| first house (you might even experience an adrenalin | | | | accept compromise as an element of home buying - |
| rush): | | | | unless your first home is custom built, accept that you |
| 1. Accept that buyer's remorse will happen and it could | | | | will need to compromise on some of the features you |
| overcome you early in the process of purchasing your | | | | have on your list of features. Remember item "2" - this |
| first home. Buyer's remorse is a natural feeling where | | | | is just your first home. Getting all the house features |
| we doubt ourselves and question our purchasing | | | | you want requires a longer term view - a goal on your |
| actions. It may last for months after you buy. These | | | | next home. |
| are natural feelings to have; a home is a large | | | | 9. Scope out any neighborhood in which you want to |
| purchase with significant impact on your lifestyle. | | | | own a home - just like test driving an automobile |
| Remorse will give way to a contentment as you make | | | | before you buy it, walk around your potential |
| this house your home. Buyers remorse usually lessens | | | | neighborhood. Check out schools, shopping and city hall |
| as you become more experienced in buying and selling | | | | (use the web) for zoning (building projects), crime levels |
| houses. | | | | and types, community involvement. Talk to people who |
| 2. Buy a House, Sell a Home. Buy to resell. Buy with | | | | live and work in the area you are considering a home |
| resale in mind. Remember that this is your FIRST | | | | purchase. |
| house purchase, and not likely to be your last. Within | | | | 10. Accept the fact that your current social lifestyle |
| 3-10 years of buying a house you are likely to sell and | | | | may shift a bit - entertain at home instead of going out |
| buy a second, third, or fourth house. Perhaps you will | | | | on the town; mowing the lawn and garden |
| buy more than that number. No matter the number of | | | | maintenance might replace some of your gym activity; |
| houses you buy, do so with the view that you will | | | | interior decorating and carpentry become new hobbies |
| re-sell, make a profit, buy UP (larger home) and/or | | | | to replace Nintendo and X-Box. |
| reduce your mortgage on subsequent house | | | | 11. Breathe - Breathing is good. Enjoy the rigors and |
| purchases. | | | | rewards of home ownership. Learn and continue to |
| 3. Pay the minimum Down Payment on your first | | | | educate yourself on home ownership. |
| house - unless you are paying 25% or more against | | | | First time home ownership can be a highly stressful |
| the total price of the house (this may provide you with | | | | situation. But buying your first home can still be a |
| some relief on the mortgage rate), THEN pay the | | | | wonderful experience. Home buying and home |
| minimum. Use your cash for legal fees and transfer | | | | ownership should complement your life and relationship |
| taxes PLUS for household improvements (like painting), | | | | with your spouse and family. You may want to do it |
| maintenance and furniture/appliances/tools purchases. | | | | more than once. Buy a House - Sell a Home. Make |
| Remember point number "2" - this is your first home. | | | | your house the home that others will want to buy. Be |
| 4. Don't make yourself 'house poor' - Amortize your | | | | the Consumer, Not the Consumed. |