Buying Your First Home - Part One

By Sarah O`Connor

Head vs. Heart:

Considering what you want and what you can afford

So you think you're ready to buy your first home. This is an exciting time in a person's life, but the process can be rather intimidating (to say the least).

Where do you start? Hopefully you've made a routine of paying your bills on time and putting a little money away on a regular basis to start saving up for a down payment. Getting into the habit of financial fitness is without a doubt one of the most important aspects of buying your first home. Not only will you have to prove to your lending institution that you are capable of handling a six-figure loan, but you will need to stay on top of your budget to ensure that you are able to cover unforeseen costs and repairs associated with home ownership.

There are many quality books and blogs available to help you take stock of your finances and start preparing yourself to become a homeowner. Check out the Canada Mortgage and Housing Corporation's excellent financial worksheets to get an idea of your price range and take a few minutes to view this informative video about buying a new home.

Start brainstorming about what the right home for you might look like. What features matter most to you? Do you want a big backyard or would you rather spend as little time as possible mowing the lawn? Do you need space for children, pets, or visitors? How about a home office? Start compiling a list and try to rank your preferences. This may come in handy later on if you are torn between two different properties.

Community research is an often overlooked but essential part of the home buying process. Before you start worrying about storage space and finishes, consider the type of area you want to live in, how far you are willing to commute and what type of property might best suit your needs (detached, townhouse, condo). Consider nearby amenities and whether they are easily accessible by foot or bike as well as car. Do you or would you like to use public transit? Take the time to research the area and find out what the development forecast for the area is, and how it is likely to change over the next five, ten and twenty years.

Use the Toronto Star's new homes search engine to get an idea of the new homes being built in your preferred area. Stop into sales offices and get acquainted with different builders. This is the time to be educating yourself about what's out there so that you can make an informed choice down the line.