Finding your first home

So you are thinking about buying your first home – congratulations, this is a big step. Now you need to know how to proceed and what to expect. The first thing a buyer should do is get pre-approved for a mortgage. Why? Quite simply, pre-approval gives you a budget. It determines your price range, exactly how much you can afford to offer and it gives you a better idea of what your monthly costs will be when you buy the house.

The next step is to establish your "must-have" list: what are the essentials for your home? These may be things like proximity to local schools, hardwood floors, or a garden area. Your list shouldn't have hundreds of items, best to keep it to ten or less. You may also want to list features you find desirable and things you want to avoid. Remember to be flexible – you probably won't get everything you want in your first home – but not so flexible that you end up in a home that isn't right for you.

Now it's time to choose an agent. It's best to work with one who you feel confident with, and be sure to get a clear understanding of how to end your contract if the relationship isn't working for you. Give your agent your list of must haves and a way to contact you quickly. This is especially important if you are working in a seller's market – if your realtor can't contact you on short notice, those perfect properties can disappear before you get a chance to see them.

Just because you've got a realtor doesn't mean you should sit back and wait – keep working on your end. Research potential neighborhoods, drive through them, and look for listings on the Internet and on the street. Keep your ears open – your ideal property may be one that isn't even on the market yet, it could be a lead through friends or family.

When you begin to look at houses, keep a short “short list”. Take photos and make notes during the showings and keep a top three list. Discard any houses that don't make the grade. By keeping your list to maximum of three properties you will stay focused and be able to easily recall the houses in question.

Don't wait too long to make an offer. Talk to your real estate agent to decide on a fair amount. If you offer too low you may lose the property to another bid, but don't offer more than you can afford, no matter how much you love it. Market statistics will also be helpful in this process. Although an offer with few conditions may be more attractive to the seller, there are a few conditions that protect you. Subject to passing a home inspection and obtaining insurance are probably the most notable because they allow you to get out of the deal if the property has problems you can't see.

A home inspection can ensure that you have a complete understanding of what you are getting into. A good home inspector should unearth any major structural issues – wiring problems, plumbing issues, mould and rot are all on the list (and not always visible to the untrained eye). Finding major problems may be a signal to walk away from the property or to lower your offer.

When seeking insurance, make sure to get a few quotes. Coverage, price and conditions can vary quite a bit between companies.

And finally, once your offer has been approved and the subjects removed, it's time to close the deal. Your realtor will help guide you through this process and then it's done! While the search may have felt hectic at times, it will all be worth it as you unpack your boxes and your new life as a homeowner begins.