People don’t just travel anymore, it seems. Gone are the passive transients of previous generations. Now, we’re adventurers, fully engaged and ever seeking the next thrill. While it’s hard to beat the excitement of trekking up the Inca Trail or backcountry skiing in the Himalayas, in my opinion, there is still no greater rush than buying your first home.

 

Like any adventure, there’s plenty of planning to do. A great first step is to talk to a good mortgage broker. He or she can recommend ways to strengthen your mortgage application by tidying up your credit. Find out what documentation you will need and put it together in a package -- pay stubs, verification of down payment, a letter from your employer and your last couple of years of income tax returns. You and your mortgage broker can then determine the maximum amount you would qualify for and the price range that will frame your search.

 

Equipped with the pre-approval for your mortgage, now take a good hard look at what your needs are in relation to current market realities and your budget. In this, a good realtor can be your guide. Determine your target areas as well as factors that might influence the resell value of your home. Consider things like neighbourhood schools, proximity to public transportation and accessibility. What about revenue potential? Is there a garage or a basement suite that could possibly be rented out to help with the mortgage at first, or that might make the home more attractive when it’s time to sell?

 

Be practical about your needs right now. While it is heartbreaking to think about moving again, the first home is rarely the “forever” home, so don’t look too far down the road. It may take you ten years to fill that five-bedroom home with the children you dream of, but in the meantime you’re paying heat, electricity, maintenance, taxes and interest on space you don’t really need. 

 

The market may dictate a change in the style of home you look for. If the price of a detached bungalow is now out of reach, consider a more affordable town home or condominium, rather than waiting to save up a bigger down payment. Alternatively, you might re-adjust your target to some of the growing suburbs and neighbouring towns where costs are lower. Avoid the trap of being “house poor”, so strapped paying for your house that you can’t enjoy living in it.

 

Finally, while it is important to read all you can, weigh all the factors, talk to and ask questions of your advisors, at some point you have to make a decision. In looking for a house, keep in mind the need for a happy compromise. While your perfect dream home may not exist – or may be out of your reach -- there are many good homes on the market. Be aware of market trends. Low interest rates and low prices converge to make a great time to buy during a recession. Conversely, during a period of inflation, real estate values may rise faster than your ability to save money. In either case, it is better to act sooner than later.

 

With some trepidation, you are poised to jump – nervous and exhilarated at the same time. With the right mentors and guides you can take that exciting step into your house-hunting adventure with confidence and determination.