Lessons learned from a year as a home owner

Purchasing a first home is an exciting time, filled with new challenges. The process is an important learning experience, and this article from Moneyville's Krystal Yee explores several important learning points for first time homebuyers.

Once you are pre-approved for a specific mortgage amount, it can be easy to get swept up in the excitement and start searching for homes in that range. It is not necessary, especially for a first home, to borrow the maximum amount possible. Remember to allow room in your budget for the unexpected. It is always possible to upsize in the future.

As you start settling into your new home, it's tempting to want to make changes right away and make it your own. One point Yee stresses is the importance of saving for home improvement projects. When it comes to renovations, it is easy to go over budget. Yee suggests making a budget with a cushion of 10 to 15% and sticking to it, keeping in mind that more changes can always be made later.

Possibly one of the most important points touched on in this piece is checking up on your finances. Spend some time making sure your any debts are in order and that you have an adequate amount for a down payment, closing costs and other fees associated with a home purchase. Sending away for a free copy of your credit report is also a good idea. This way, you can review it yourself first and ensure it is up to date and error free, before applying for a mortgage.

For more helpful tips about buying your first home, talk to a qualified Mortgage Broker.

For Krystal Yee's full article from Moneyville, click here.