How to Go From Renter to Homeowner in Hamilton

For many renters, buying a first home can feel like a huge step.

There are questions about affordability, the down payment, mortgages, neighbourhoods and whether you're actually ready to take on the responsibilities of owning a home.

You don't need to have everything figured out before you start exploring your options.

But it helps to approach the process in the right order.

Here are five steps to consider if you're thinking about moving from renting to owning a home in Hamilton.

1. Understand Your Numbers

Start with your overall financial picture.

Look at your income, monthly expenses, existing debt and the housing costs you could realistically manage.

Don't look only at the mortgage payment. Homeownership can also involve property taxes, insurance, utilities, maintenance, condo fees and other expenses.

The goal isn't simply to find out how much a lender might approve you for.

It's to understand what level of housing cost makes sense for your life.

2. Understand Your Mortgage Options

A mortgage pre-approval can help you understand how much you may be able to borrow and what your payments could look like.

Talk with a qualified mortgage professional about your particular circumstances, including your income, credit, existing debts and available down payment.

A pre-approval is useful, but it isn't a guarantee that every property you look at will ultimately be approved for financing.

3. Decide What You Actually Need in a Home

This is where the home search becomes more personal.

What matters most to you?

Do you want to be close to work? Family? Public transportation? Restaurants and shops?

Would you rather have a smaller home in a location you love, or more space farther from the places you visit regularly?

Make a list of your must-haves, nice-to-haves and things you simply don't care about.

That can make the search considerably easier.

4. Understand Your Down Payment

Your required down payment depends on factors including the purchase price and your circumstances.

Don't assume you automatically need 20% saved before you can buy, but don't assume that having the minimum down payment means you should spend as much as a lender will allow either.

There can also be additional costs associated with buying a home, including closing costs.

A mortgage professional can help you understand what you'll need based on your specific situation.

5. Find the Right People to Help You

Buying your first home involves more than finding a property.

You'll likely be dealing with a mortgage professional, REALTOR®, lawyer and potentially a home inspector and other professionals along the way.

Having people who can explain the process and help you understand your options can make the transition from renting to owning considerably easier.

Renting and Owning Are Different Decisions

There's no rule that says everyone should buy a home.

The right choice depends on your finances, plans, lifestyle and priorities.

But if you've decided that homeownership is something you want to pursue, taking the time to understand the numbers and the process before you start looking seriously can put you in a much better position.

If you're a renter thinking about buying your first home in Hamilton, I'm happy to answer questions and help you understand what the process looks like.

Sincerely,

Mike McCarthy, MBA
REALTOR®