A Guide For First Time Homebuyers
So you think you are ready to purchase a property?You came to the right place. Purchasing your first home can be daunting if you haven't done your research.
Here we will provide you with everything you need to get started in buying your first home in PEI.
The first thing you need to consider is what your long term goals are. Will this be your forever home? Are you planning to only live at this property for only a few years? Or are you possibly looking for a potential investment opportunity?
Things To Consider
These are just a few questions you need to ask yourself before acquiring the home. Once you come to a conclusion on that here are some more considerations.
1. How much mortgage do you qualify for? The first step before shopping for a home is to figure out the amount you can spend. To achieve this, speak with a banker or a mortgage broker to help you figure out how much you can work with. Many factors can affect your ability for financing so be prepared while applying for a mortgage.
2.How much can you afford? We just went over how much of a mortgage you can get, now it is time to analyze what you can afford. Same thing, right? Not quite. As you may be eligible to borrow money from a lender through a mortgage, you still must think of what it will cost to Furnish, pay Property Tax, use Utilities, Maintain the home, as well as any expected and unexpected costs. All of these variables must be accounted for to ensure you can afford the home.
3. What type of home are you looking purchase? There are several types of residential properties on the market that offer different styles of living. To name a few would be: Single Family Homes, Duplexes, & Townhouses.
These options are all great types of properties that provide different opportunities such as in a Duplex, you could rent out the other side and have an Income Property, therefore paying a portion of your living expenses. There are also other options for purchasing, but we decided to keep this list simple and the most effective.
4. Who can help you find your first home?
Us, of course! We have 30+ years of experience of PEI Real Estate as licenced REALTORs and are more than happy to help. We welcome all first time homebuyers to ask any questions they have as well as try to make it as easy of a transaction as possible.
So, now you're ready to get that home!
The Purchasing Process
You have everything you need, a REALTOR, a Mortgage Approval, a Budget, & an idea of your Ideal Home.
Finding The Home
Once we meet and discuss what exactly you are looking for, we seek the appropriate homes for you, both on the market and off of the market.
Now it is time to meet with your banker or mortgage broker to find the right mortgage for you.
Luckily, first time home buyers have a few extra options to choose from while deciding the down payment as there are government funded programs in place that can help you secure a down payment.
Place An Offer
Now you have found the property that you want to purchase. With our help, It is time to place an offer. When making the offer the following things are considered: Purchase Price, Closing Date, Inclusions/Exclusions, and any other conditions that you would like to make. Once the offer is placed it is either Accepted, Rejected, or a Counter Offer is then placed.
A Counter Offer is where the selling party sends you an offer back with changes to the original offer. If a Counter Offer is presented you can agree to the changes and go forward with the sale or reject. Once the sale goes forward, you must make a deposit as good faith. This money is held in a trust account at the seller's agency.
Have a Home Inspection Completed
During the progress of the sale, it is highly recommended to have a Home Inspection done. This can be done by a professional or yourself, if you wish. This step is important as things that could not be seen by just viewing the property can be spotted and can be taken care of before the sale closes.
The time on the offer is now complete and it is time to close the sale. This can be the most stressful part of the real estate purchasing journey but the most rewarding if all goes as planned.
Home At Last
Now everything is complete and it is time to move in! You now own the property and you are free to do as you wish.
Here at Team Peters & Son, we would like to help your goals of purchasing a home on PEI and would be happy to answer any questions you may have.