Toronto, ON (PRWEB) August 04, 2013
First-time homeowners are filled with a lot of stress and anxiety as they do not know what to expect with their first home purchase. As a consequence, many homeowners are mis-informed about the whole process. In an effort to help new homeowners, KANETIX provides tips for first-time homeowners.
One of the most important steps one can ensure satisfaction with the home buying process is to determine what they are looking for in a new house. Some homebuyers fall in love with a house based on its decor, location, or other factors. They may rush into making an offer, but may later get cold feet because they realize that it is not quite right for their needs. According to the Canada Mortgage and Housing Corporation, one of the best steps is to make a list of features a home absolutely must have, features one would like to have, and features one does not want it to have.
The next step a homeowner should do is review the budget for their home. A new home can affect ones budget in various ways, so it is important to consider the cost of the home fully. The mortgage payment is the most obvious expense associated with home ownership. One can use a calculator or mortgage broker to estimate the mortgage payment based on different loan terms that may be available. In addition, other costs related to changes in utility costs, owners association dues; property taxes, insurance, and commuting costs to work from a new location should all be factored in.
Location, location, location. The location of the property can affect closing costs, as well as transfer taxes, property insurance and other costs will be based in part on the property location. The right home may be ideally located to provide an easy commute, access to schools and healthcare, and more. Some people have a desire to live in an urban environment while others prefer a suburban or rural environment. All of the factors regarding location should be reviewed to help to refine ones search location and to ensure they will truly love the property.
Another factor is closing costs which can include everything from the title charges and legal fees, to property insurance, appraisal fees, and more. These fees can easily cost a typical homebuyer several thousand dollars or more. Keep in mind that some fees may vary based on the property that one chooses to purchase. When one gets pre-approved for a loan program, their mortgage company will provide them with a more firm estimate. Estimating these charges will help to ensure that buying a new home is affordable.
It is common for Canadians to pay between five and 20 per cent of the sales price as a down payment. Some may place a large amount as a down payment. There are multiple sources of funds that may be used as a down payment. Common sources include personal savings accounts, the RRSP for first-time homebuyers, gifts and equity in an existing property. Consumers should take time to consider how much money they have available to use as a down payment. If necessary, save up additional funds so they have enough money to pay for both closing costs and the down payment.
Consumers should also take some time to thoroughly shop for the best financing available. There are a wide range of loan programs available to most homebuyers. These may vary based on the interest rate, the credit requirements, the down payment requirement, the loan term, and other factors. The best loan program to apply for is one that one will qualify for as a buyer. For example, some programs are designed for borrowers with a lower credit score or who are self-employed. The best loan program will also be affordable for ones budget. This includes having affordable up-front costs. One can easily use a comparison website to compare mortgage rates, but they may also want to speak with a loan officer or mortgage professional to learn more about loan requirements that may not be published online.
Launched in October 1999, KANETIX was Canada's first online insurance marketplace and today provides over a million quotes per year to consumers looking for insurance, as well as comparisons for mortgage rates and credit cards.
The KANETIX comparison service is a one-stop shopping environment for consumers. Each day, thousands visit the KANETIX website at http://www.KANETIX.ca to comparison shop their various financial needs. Shoppers choose what they want to compare, obtain a quotation and complete an online application or, with the help of KANETIX connect with the provider to purchase or apply for the product over the phone.
Through its Software as a Service team, KANETIX is also the leading provider of online insurance quotation technology, developing online quotation systems, mobile solutions, actuarial tools and websites for many of Canada's largest insurance brands.
For more information, visit KANETIX.ca or contact:
416.599.9779 ext. 343