Top 5 Tips for First-Time Buyers to Become Property Owners Fast
Buying your first property is now harder than it has ever been. All major cities have seen substantial interest rate hikes and prices have increased drastically as well. So many first-time buyers are getting eliminated each reach due to unaffordability. New condos in Pickering or any other part of the GTA region are now priced much higher than they were a few years ago.
However, there are certain things that you can do to become a property owner. It all starts will research. Do your research and talk to the right people with the right contacts in the property industry. You will do much better when you have the right advice on your side. So, here are a few tips that will help you buy that first property fast:
1: Your First Property Will be a Stepping Stone Not Something Permanent
Of course, a big detached house in the city is the ultimate property. But this will not be a first-time opportunity for many. So, first-time buyers should not treat their first property as a place to grow old. Instead, treat it as a stepping stone that will help you build equity towards that goal property.
Condos, apartments, and townhomes are much better options when it comes to affordability. However, the good thing is that whatever downpayment and mortgage installments that you put in, will be there to use later on.
The good thing to do is to buy whatever is okay for now. You can sell the smaller property when you have more money saved or as the income improves over time. Upgrading your way toward that dream city property will enable growth in the long term.
2: Find the Best Mortgage Broker in Your City
Of course, banks will provide a good degree of support. However, they will only have access to their products and rates. An experienced mortgage broker on the other hand will be working in the open market. These guys will have access to just about everything.
With wider access to properties and rates from many lenders, mortgage brokers will make it easy to acquire that first property. Different buyers will have different preferences, budgets, and priorities. High-quality mortgage brokers will provide the selection required to fulfill all of those.
Also, keep in mind the fact that experience is key. A family member or a friend who has just started in the property and broker industry, may not be the best option. Work with experienced fellows and companies with a lot of reputation. This will help get the best property.
3: Get Pre-Approved for Mortgage
One tactic that often helps first-time buyers is to get pre-approved for a mortgage. When eying up properties, you can spend quite a bit of time and effort on finalizing the few. Also, your bank might tell you that you will not be able to qualify for a majority of the shortlisted ones.
So, to tackle that, you can get a pre-approved status. Many banks are doing this now. They will assess your credit and let you know in advance the range they will be willing to finance. This will give you an early idea of what you should be looking at.
Factors like property taxes, maintenance fees, closing costs, and many other expenses will be at play. Factoring all of those in with your pre-approved status, you will be able to fast pace the process. Also, getting a pre-approved status opens the door for something that might have not been on your list.
4: Get a Parent to Become a Co-Signer to Boost Your Buying Power
As things stand, it is getting harder to qualify for a mortgage. Hiking interest rates and property prices have made it difficult to qualify for many. So, if you are going through with this and still want to become a property owner, a good solution is to include a co-signer.
Parents usually have much better credit with higher incomes. If you are a single buyer, include a parent as a co-signer. Getting a co-signer on board will make it much easier to qualify for properties that you on your own will not. The credit of your parent will help you to qualify. Of course, you can later on shift it all to yourself eliminating the responsibility of the co-signer.
5: Get Your Deposit in Cash and Ready
Whether you are looking for condos for sale in Mississauga or townhome properties, there will be a cash deposit required. This cash deposit will be required up front. Also, cash deposit makes and breaks many deals. When bidding on a property, if your bid wins, paying the cash deposit quickly is key.
The owner of the property in question will often give priority to whoever can produce the deposit quickly. So, keep the cash readily available when looking at properties. Withdraw the amount from your bank early and have it in cash. Or, if you are going with a bank transfer, make sure to get it all available.
The current deposit rate is 5%. It must be paid within 24 hours after your offer has been accepted. Also, this time is often not enough to cash out the amount. So, have it in cash to make the deal go through.
Should You Buy Now or Wait?
So, the big question is, should you buy now or should you wait? We are in a seller’s market. There is no doubt about that. However, you never know when the next interest hike strikes. It will up property prices even more. So, the time to buy is right now. When you get a favorable deal and qualify for a mortgage, don’t delay the purchase. Get your first property and say goodbye to monthly rental payments. Rental payments once out of your account, have no way of coming back. Mortgage payments will be collected and available for you whenever your income increases and you need to buy a bigger, better property.
