Home Buying for Young People: Plan Ahead

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1. Here is a huge misconception that many people believe:  Paying your rent and utilities on time does not effect your credit.  However, not paying them and waiting for them to go into collections will.  Credit cards and revolving loans etc. will build credit and must be taken seriously.  For new and young home owners, there are three important factors for being approved for a mortgage:  good credit history, down payment (minimum 5%), and employment.  All three are important.  Consider this:
   Bad Credit + Good Employment = Higher Down Payment
   Good Credit + Employment = Minimum Down Payment
   Decent Credit + Cash Job = Higher Down Payment (BIG)
   Don't worry! Everything can get done as long as you have 2 out of the three factors
2. Saving is very important!
3. You can read a book, but there is also a lot of informative workshops out there for first time  home buyers that will break down and explain what 10 books would tell you in less than an hour.  Don't forget to take notes!
4. This is super important.  Try visiting open houses in certain areas to get a feel of what you're looking for.  Do you want a condo or a house?  First time home buyers tend to be indecisive about what they want, which can make the process much longer.
5. Although family and friends in the real estate business will be able to answer some of your questions, I recommend that you seek a professional realtor as its best not to mix friends and family and business.  Start building a relationship with a Realtor who works where you want to live.  They will be an expert on the area and can guide you through everything and answer all of your questions.  If you want to buy soon, it is also smart to get preapproval from a bank or broker.  If denied, get professional advice on how to be approved when you are ready.

Hope this helps you plan on buying your first home!  If you are planning to buy in the GTA, please don't hesitate to contact me and I will be happy to guide you through this exciting process!