search

What to Consider as a First Home Buyer: FAQ’s

When you decide to buy a house, it will become one of the biggest assets you will own, and this can be daunting and stressful. When looking for homes for sale in Abbotsford, for example, there are many factors to consider as there is a lot of information out there, which can make it hard to determine what is important and what procedures you need to take.

As a first home buyer, this is an investment for your future, and finding a property that suits your needs can be incredibly beneficial. Finding your forever home, your next investment opportunity is an important part in your life, so knowing what to look out for and if you are making the right informed decision for your future and finances in the long run needs to be considered.

This article will give you a head start into questions you might be asking yourself. We explain what is required from you in terms of gathering the right information and research when it comes to the property you are interested in, and why a property valuation as a first home buyer is one thing that will be the key to making your final decision on your dream home.

FAQ’s

How much can I afford?

When it comes to buying a house, we all have our own personal preferences and it’s important to consider how much you wish to spend and figuring out the amount you can afford. Consider your monthly income (from all sources) and any debt that you may owe currently.

You would then need to calculate after paying your monthly bills such as student loans or car payments, how much money would you have remaining. The difference between the amount calculated after monthly bills and the total mortgage payment is what you could potentially use towards the down payment if needed.

Although we all dream of owning a mansion on the hill or a beach bungalow, sometimes being realistic in the type of house and location is all dependent on your budget. Choosing a lower-priced home may also help when it comes to increasing your cash flow during the first few years in terms of utilities and repairs to the property that many owners forget to factor in.

Mortgage loan availability?

For first-time buyers, there are various loans available. The most suitable loan will depend on various factors that they will consider such as credit, money saved for the down payment and the length of time you plan to stay in the home.

FHA Loan

FHA stands for Federal Housing Administration, if you have at least five percent or more for the down payment this type of loan can offer low interest rates and minimal fees.

LTV Loan

LTV stands for “loan to value” is the ratio between what you owe on your home compared to its worth. With this type of loan, even if there is no money down or closing costs due at purchase time (which some lenders offer), it requires regular monthly payments so that your principal debt balance gradually lowers over time.

CASH-OUT Refinance

This option allows those who have enough cash saved up for their initial down payment as well as any fees like title insurance premiums and appraisal costs to get rid of their old mortgage.

When it comes to mortgage loans there are two options: a fixed rate or a variable rate. The type of loan you choose is one of the most important decisions you will make when purchasing a property. A fixed rate mortgage is the most used, as it offers homeowners some protection from the increase in interest rates every year. 

The downside to this type of loan is that if you would like the payments to stay low after the initial period or to pay the loan off quickly by paying in extra a month, there is no room for flexibility in how much it will cost, which can be hard when it comes to your monthly budgeting.

With a variable rate mortgage, this has a higher risk, as monthly payments can increase over time. A variable rate has no pre-defined term, meaning your monthly payment can differ each month and you may end up paying more in interest rates.

Additional cost?

When buying a home, it’s not just the actual price that you need to think about, there are monthly expenses like water and electricity bills, Youi home insurance, as well as council or state taxes.

Many of the payments may be more frequent than others, it’s important to budget for these additional costs when determining the amount needed for any upfront costs when purchasing your new home.

Home Inspection/Property Valuation?

When you’ve found a property that you are considering buying. A home inspection, other wise known as a property valuation is a process in which a qualified senior valuer will inspect the property and conduct a comprehensive detailed report on the true value (worth) of the property as well as the market analysis of factors to consider like the area, location, size, and sales of properties similar to the subject property you are interested in.

This type of property valuation is called a pre-purchase valuation. The report will outline the true value determined for the property and any existing problems that could be fixed prior to purchase if you wish to negotiate with the owner as well. Secondly, inspections act as reassurance for buyers, so they have an insight into what they may be purchasing then there are no future surprises down the line.

Even though buying a house can be daunting it is still an exciting journey, having the right amount of knowledge, understanding and professional advice will make the process less stressful and more enjoyable. Your property is your biggest asset and depending on what requirements are needed for your property valuation whether you’re a first home buyer or a property investor there is a service that can be tailored to you, with the right advice and information you can save thousands and be prepared for any potential risks that may arise in the future.

Author Bio

John Anderson – LinkedIn Profile

John Anderson is one of Melbourne’s leading experts in commercial and residential property valuation services. John is a registered Chartered Surveyor and Senior Property Valuer with over 20 years of professional experience providing property valuations across Melbourne and Victoria. His in-depth expertise in real estate and property has allowed him to share his specialised knowledge as an authority keynote speaker at conferences and universities across Melbourne.

Minimalist Interior Design Trends: How Simplified Spaces Can Increase Your Home’s Value

In an age of extravagance, minimalist interior design is a welcome splash of fresh air for home. De-cluttering the extraneous, prioritizing function, and embracing sleek visual beauty, minimalism is more a philosophy than a style. While minimalist interiors to others appear sparse or too minimalist, real estate trends indicate that minimalist, uncluttered houses are what […]

Read More

Small Space Kitchen Design: 15 Smart Tips For Your Home

When designing a small space kitchen planners use smart solutions that help to save space and create a practical clutter-free kitchen environment for space and cooking things. A small space kitchen design can be very functional and beautiful if every inch is used and the right materials are selected. Having a small kitchen can be […]

Read More

Storage Units For Living Room: 20 Pieces of Indian Craftsmanship

Along with other furniture, storage units for living room play a vital role in Indian households. From handcrafted artifacts to vases and books, everything is stored in these units. Adding storage units for living room makes the space truly multipurpose while also acting as a fine decor element. Vivid products like TV units, bookshelves, consoles, […]

Read More

Why Everyone’s Switching to Parking Tiles?

A well-designed driveway not only adds value to your property but also improves functionality and curb appeal. When it comes to creating a durable, attractive parking area, choosing the right type of parking tiles are essential. Parking tiles are specifically designed to withstand the weight of vehicles, resist weather elements, and maintain their appearance over […]

Read More

Crockery Unit Design: 25 Modern Ideas For Your Home

Looking to transform your dining space? A modern crockery unit design can be the key element for the upgrade! In addition to its usefulness, an ideal crockery unit design provides a less cluttered space, adds ease of access, and serves as a feature of your home. Recent innovations in design also allow you to adapt […]

Read More

Modular Houses: The Modern Way Of Construction

Modular houses are prefabricated structures built in modules manufactured and assembled on-site. They are built under controlled plant conditions, using the same materials, and designed to the same codes and standards as conventionally built facilities but in about half the time. As a result, this reduces the construction cost to 30% to 50% less than […]

Read More

The Timeless Appeal of Brick: 20 Exemplary Brick Houses

Brick houses have been a cornerstone of architecture for centuries, celebrated for their durability, aesthetic versatility, and timeless appeal. In modern design, architects continue to explore innovative ways to incorporate brick into residential spaces, blending traditional materials with contemporary needs. While the design of each brick house is unique, there are several ways to incorporate […]

Read More

The Design Story Of Monkey Forest Villa By Architect Hiren Patel | Elev8 2025

Architecture is not just a profession, it is an evolving journey of discovery, adaptation, and growth. At Elev8 2025, Architect Hiren Patel takes us on a journey into the design philosophy of Monkey Forest Villa. He explores the architectural elements that contribute to the home’s artistry. He also offers insight into the story of his design […]

Read More

20 Astonishing Sofa Designs For Living Room In Indian Context

One of the significant decor elements for the living room is the sofa. Sofa designs for living room radiates the feeling of comfort, the dweller’s personality, and their personal touch to the design. From traditional Indian settees to modern-day lounges, with plenty of choices available, it can be puzzling what to choose. With this curation […]

Read More

20 Types of Plants for Home Garden to Transform Your Space

Plants for home garden, apart from making houses look more beautiful and inviting, add health and calmness to them. Having any kind of indoor plant, a herb plant or a flowering plant adds some value to your decor and the quality of the space. Always choose plants that will flourish in your space and climate. […]

Read More
  • Do you need an architect or builder for your new custom home?

    Dubai’s housing communities with stunning views