Budgeting 101 For First-Time Buyers

Being handed the keys and starting life as a homeowner for the first time is incredibly exciting! The freedom to make a space entirely your own is, for most, the sign of adulthood and ultimate responsibility. In fact, purchasing property is probably the biggest purchase you will ever make.

 If you are seriously considering taking that step, the fact that you will need a chunk of cash saved up for a down payment on a home tends to be common knowledge. However, there are also a few other sneaky costs that can creep up on you. To best avoid the sticker shock, here are some tips on how to be best prepared for making that offer on your new Saskatoon home when the time comes!

Do your homework! 

Take an authentic, honest look at your finances, figure out what you can afford and start budgeting and saving as early as possible. When preparing to make the biggest purchase of your life, you will need to consider your other living expenses, such as car payments, utilities, property taxes, home insurance and more, on top of mortgage payments.

Teaming up with your financial advisor and a knowledgeable local REALTOR® can also help map out these costs with you to get the best picture. Overestimating what you need to shell out every month will help ensure you won’t have any nasty surprises down the road. It is also wise to put money away monthly as part of a savings or emergency fund. Furnaces can break down, and rooves can leak, or you might decide that your bathroom is in desperate need of an update, and you must now foot all those costs. 

Prepare for the extra costs in the buying process

Going beyond the significant cost of the deposit, the possibility of purchasing an extra parking spot when buying a condo or using professional cleaning services before moving in is something to think about. Additionally, you will need cash for a professional home inspection, which could put you back between $500 and $1,000 or more, depending on where you live. There are also different closing costs that you might have to pay as well including attorney and notary fees, certain utilities in advance, installing a security system or changing the locks if you choose to do so. Of course, you also want to be able to do the fun stuff like purchasing new furniture for your space and sprucing up your décor to match. 

But most importantly…

Your REALTOR® has been to this rodeo many times before, so let them guide you through the process! By talking through your needs, wants, and budget, your REALTOR® can help narrow down what’s important to you: location, features, resale value, mortgage helpers, and everything in between. 

Have questions about the buying process or are still not quite sure where to start? That’s what I’m here for!