Buying Your First Home - Part Two

By Sarah O`Connor

Dollars and Sense:

Narrowing your focus and sweating the small stuff

Now that you have an idea of what you want and what you can afford, the fun can really begin. Based on the long list of developments you generated thanks to the Toronto Star's New Homes Search Engine you can begin to narrow down your choices. Review that list of desired features you compiled in order to begin the processes of determining which builders offer you the most bang for your buck.

Read up on choosing the right home builder for you and don't be afraid to ask lots of questions. Be sure to discuss closing dates. If it is important to you to move into your new home within a certain time frame be sure you speak to your builder to determine if this is feasible. Also keep in mind that the further in advance you purchase your home the more likely you are to negotiate a great deal.

Now is also the time to get pre-approved for your mortgage. Although this step is optional, you can save time and energy down the line by being clear on exactly how much house you can afford. And when the time comes that you're ready to make an offer on a new home the process will go much more smoothly if you already have financing secured.

Check out this great article about choosing the best mortgage for you and do a little research to find out what options various financial institutions are offering. Speak to the sales representatives at a few of your favourite builders' sales offices to ensure you understand the entire process.

Once you have established a firm idea of your price range, it's time to start crunching more numbers in order to figure out what the costs of buying a home really are. Variable costs including mortgage loan insurance premiums, the deposit and down payment, property taxes, homeowners insurance and closing costs can do a number on any budget if they manage to sneak up unawares.

If you are thinking that condo living might be right up your alley, read this helpful article about Condos and Money, which outlines some of the additional monthly fees that condo owners are subject to, like maintenance fees and reserve funds. Keep and mind that the cost of having snow cleared or a roof repaired is equally real for condo dwellers and those in detached homes alike, but condos cover those expenses through a monthly fee while detached homeowners will likely have to pay in a lump sum when such work needs to be done.

There are also expenses like home appliances, new furniture, moving costs and service fees for things like gas, electricity and internet access. Do your best to tally the costs that go beyond the actual price tag on your new home to be sure that you are not getting in over your head.