Managing the Stresses of First-Time Home Buying: A Simple ‘How to’ Guide on Keeping it Together!

Monday Jul 16th, 2018

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Managing the Stresses of First-Time Home Buying: A Simple ‘How to’ Guide on Keeping it Together!
The prospects of becoming a first time homebuyer can be nerve racking.

Purchasing your first home is one of the most important financial decisions most people will make in their lives. The decisions can seem endless, from location, to price, to home style, realtor, and more.

Besides the seemingly endless decisions, there are a number of responsibilities, which may seem overwhelming. This blog will explore some tactics that will prove useful for anyone considering property ownership for their first time.

Be Sure to Budget:

The best way to reduce, or all together avoid a great deal of financial stress is to budget.

Identifying spending patterns, and creating a strategy to maximize your income is the best way to achieve a functioning budget that works for your individual needs.
Locate the areas where you can cut back, and utilize those freed up funds to reach your savings goals faster.

Creating a plan of how, where and when you will spend your money provides you the ability to stretch your resources further, save more and invest faster.

Ultimately, you should ensure you have a sound budget that allows you to pay yourself first!

Starting to Save:

To purchase property in Canada, you will need to save some money.

There are a number of costs associated with buying a home, which include: the down payment, legal fees, inspections, closing costs, and taxes, among more.

The best way to manage the stresses of purchasing your first home is to have a plan! Create a financial plan that outlines your goals, including dollar amounts and timelines. Start by figuring out how much money you need to save, the intended save date, savings frequency, and the amount you will need to set aside to reach this.

Having a proper plan and knowing exactly where you stand financially will ease much of your monetary stress while buying.

Remember that the larger your down payment, the more favourable you are in the eyes of your lender, therefore the key is to start saving early.

Correct that Credit:

Having the ability to provide a down payment is great, but most first time home buyers will need to finance the rest of the purchase price of their home, meaning they will require a mortgage. 

Aside from having funds for the deposit, having a good credit history is crucial in securing the best possible mortgage rate.

Your credit shows potential lenders your financial behaviours, so be sure to regularly monitor your report to ensure there are no surprises.

If you have a low credit score, high credit utilization, delinquency on your record, or find yourself making minimum payments, you may wish to consider consulting assistance in resolving this.

Educate Yourself:

Determine where your home-buying ignorance lies.

Ask yourself; “Do I understand the home-buying process”, and “Where do I have room to learn more?”

Understanding exactly what is going on at each step of the process is beneficial for the buyer, because reducing confusion reduces stress!

Homebuyers can feel lost in the process, the jargon, the finalities, and the paperwork. However, using available resources, such as the ones posted below the body of this blog, are helpful in establishing a sense of control.

Consult the Professionals:

Financial planners, credit counselling, and other money management services are available to assist those who are looking to take control of their financial situation.

Getting a grasp on your finances can seem like a tremendous task. Yet the reality of the matter is, the longer you wait, the tougher it will be.

If you don’t have the available time, or just don’t know where to start, the professionals would be happy to help. Even if you do have a working financial plan, professionals can assist you in the areas you may not be as strong in.

A financial plan can help anyone at any stage, it is never too early, or too late to get started!

Stay Healthy:

Making plans for the future causes stress levels to naturally increase. Aside from all the budgeting, saving, and educating yourself, it is crucial to remember to also take care of yourself!

All this talk about the future may have you forgetting about today.

To keep your cortisol (stress hormone) levels in check during this exciting roller coaster of an experience, you must not allow your health to fall wayside. Falling ill physically or mentally can put a great strain on your finances, and halt your savings.

Staying active, hydrated, and keeping up with a healthy balanced diet will assist in the overall stress management process associated with your home purchase.

Do not let your stress levels get in the way of your goal.

Keep the Course:

It may be difficult but it is important to remain focused on the end goal, and that is, your dream of being a property owner.

It is important to remember that it is normal to feel stress when making significant life choices, but to also remember there are ways for you to take control and manage! By reading this blog you’ve actively taken the first step in getting a handle on your property purchase.

As the saying goes, failing to plan is planning to fail!

If you can help it, than why wouldn’t you? Because curtain options and paint swatches should be your only worries when buying your home!


Resources for the Reader:

 


https://www.cmhc-schl.gc.ca
https://www.investopedia.com
https://www.skillsyouneed.com

https://www.mymoneycoach.ca
http://www.fpsc.ca
https://www.financialplanningforcanadians.ca
http://www.letsmakeaplan.org

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