Thinking about buying your first home?

There are a lot of things to consider when buying your first home. How long do you plan on living there? What kind of lifestyle are you looking for? What do you really need? The average Canadian moves every three to five years; keep this in mind when shopping for a home as it may be true for you. For example, a one bedroom loft may be perfect for a young couple without children. They could live there for several years enjoying the benefits of home ownership in an affordable home, with a carefree lifestyle. Someone else who is planning a family could quickly outgrow the space and may need to rethink the loft. If the near future looks very different for you then find a home that will allow for the lifestyle change. On the other hand, there’s no need to get an expensive two- or three-bedroom home if you don’t need the extra rooms.

When it comes to borrowing money some say that you shouldn’t borrow as much as you qualify for and the other school of thought says you should buy as much home as you can afford. It may be true that with regular pay raises and increased earning potential, the big payment today will seem like a drop in the bucket later on. This is a decision only you can make and you should calculate the carrying costs and be realistic about your budget. Make sure that whatever you do is within your comfort zone.

You should check your own credit on a regular basis to ensure that the information posted is accurate and up to date, and to ensure that you are not a victim of identity theft. When it happened to me I was able to thwart the efforts of the criminal by putting a notation on my bureau. You will spend a lot of time and will have to do the leg-work yourself, but in the end you’ll be spared the trauma and scars that identity theft can leave behind. A good credit score could get you better interest rates. If you have more than a couple of blemishes on your report you may qualify for a smaller loan or you may just have to pay a higher interest rate and fees. A good option is to work out a plan with your mortgage specialist to actively improve your credit and increase your borrowing power in as little as a few months.

Mortgage specialists will assess your debt load and virtually create a mortgage solution for you based on your assets, credit history, income, job potential and other factors.

If you are still unsure if you should buy a home after making these considerations, you may want to consult with an accountant or financial planner to help you assess how a home purchase fits into your overall financial goals.