Be prepared if you're thinking of buying a home

Your first home will probably be the largest investment you ever make. The most important advice that I can give is this: Research everything ahead of time ­— consider factors such as the builder, home condition, location, amenities, property tax, lawyers, your financial ability, zoning, bylaws, neighbours etc. — and do not be pressured by anyone.

First things first — What can you afford?

Review your available cash for deposit, your annual income to pay a mortgage, and your monthly expenses. Speak to parents and determine if they will help you out with deposit money. Once you have done that, go to your bank and find out how much money you are entitled to borrow, how much of a deposit you’ll need, and what your monthly costs will be. This will allow you to focus on homes you can actually afford. Get a pre-approval in writing so you have documentation to rely on. Today, this step is particularly critical — do not get caught up in the rush of buying a house beyond your budget!

Next, do you want a condo or a freehold?

Condo living provides a carefree lifestyle – someone else cuts the grass – but you pay additional monthly common expenses and sometimes others determine how the amenities such as a gym, party room etc., if not your unit itself, can be used. Freehold ownership provides the freedom to do what you want but maintenance and upkeep all fall on your shoulders. You also need to decide whether you want a new or resale home.

If new, the offers are longer and filled with clauses that could cost you money or result in long delays. Be sure to see an experienced real estate lawyer familiar with these kinds of agreements before it is final and no longer conditional. Research the builder and go to other sites it has built and ask people about quality and after-sales service.

If resale, the offer is usually prepared by an agent on a standard form but again, there are things you want to get a lawyer to review. Ask for a Sellers Property Information Statement. You may not get it, but it is a bargaining chip in any event. Worried about dimensions? Get a list of all the things included and make sure everything is in working order and it says that they are in the offer! Remember, not listed, not yours!

If it’s a resale condo, you’ll need a Status Certificate. Make sure the offer is conditional on your lawyer reviewing it. Also, get a home inspector – see my article on our site called “Choosing a Home Inspector” — and home insurance, whether freehold or a condo.

Next and very important — find the right lawyer. Lots to consider. In the meantime, go out and find that dream home and have fun doing it. Just be prepared.