The real estate market can be daunting to first time buyers, even if you're buying in a small town like Riverdale, Toronto. The popularity of the area and the amount of development that goes on there means that there may be dozens upon dozens of homes for sale in Riverdale at any given time. How, then, can a first timer be expected to choose and buy one? The chief concerns of a first timer are getting what you want and not paying too much for it, so these selection and financing tips may help you.
One of the biggest mistakes first time buyers make is getting in over their heads with regards to their mortgage payments. Too many people expect to be able to buy the same type of home as the one they grew up in, failing to realize that their parents have changed houses several times in their lives and their family size and buying power changed. Unless you've already got children and a large savings account, chances are your best bet is to buy something modest and small, like a condo or town house.
Figuring out how much you're able to spend is a trick that not everyone figures out. Your savings should constitute between 5% and 20% of the home's purchase price (depending on your bank's requirements for a down payment) and your monthly mortgage payments should never exceed 30% of your income. For people who have been renting for a long time (while still able to maintain a balance budge and contribute to savings) this is equivalent to your old rent payments. Remember that if you're buying a condo, you will also have monthly condo fees to take into consideration.
When you actually start to visit properties that are for sale, it's important not to get carried away looking for every single feature you've ever wanted in your life. Sit down before you start your search and decide what you truly need - such as an easy commute to work or a second bedroom for your office. The rest can go on a 'would like' list for the realtor to consider accordingly.