Southwest Calgary is home to some of the city’s most sought-after communities, where the beauty of the city and quality of life is tremendous. There’s a vast amount of living options in the SW, such as homes and condos in every range from staring to estate properties. The area stretches south from the Bow River and west from the heart of downtown to the city’s limits.
While many Calgary renters love looking at listings of SW Calgary homes for sale, not everyone can afford a Calgary SW home or Calgary luxury real estate for their very first purchase. Getting on the property ladder is important but don’t make the mistake of buying just any home just so that you can get on that ladder. You want to be sure you purchase something that will suit your needs in the short term from a housing perspective and that will suit your longer term plans from a financial perspective.
Here are some tips that can help you transition from renter to buyer as well as tips to help you ensure you do so pragmatically — for your living situation as well as your financial situation.
Saving Your Down Payment
Making the move from renter to buyer can be a challenge, particularly with the fact that rental payments can often make it difficult to save for a down payment. Living on a strict budget as well as doing your best to save money is the best way to approach things. Any income increases or bonuses could go into your down payment fund. While you build that fund, keep it in a high-interest savings account so it’s not readily available to be spent. While you save money, do your best to get your credit in stellar order so that you look like a good candidate for a mortgage to prospective lenders.
Don’t Forget About Additional Funds Required
Beyond the down payment, which can range from 5% to 25%, depending on the price of the home and your earnings as well as your credit status, you’ll want to save another 1-2% for closing costs as well as put away a nest egg of about 6 months of expenses. These six months of mortgage and utility payments put aside will not only help you sleep at night but shows potential lenders that you’re well-positioned for the responsibilities of home ownership.
Make Sure You Look Good on Paper
Have you run your credit report to ensure everything looks good for potential lenders? This is important! A mistake or something you inadvertently forgot to take care of could either cost you more from an interest perspective or could mean that you have trouble securing a mortgage at all.
Part of your efforts to save your down payment should also be to reduce your debt ratio. Pay off high interest credit cards first and then you can find that as your debt shrinks you can dramatically boost your down payment amount — getting you into your own home sooner.
Make sure you do a bit of shopping around for a mortgage, too. Many people now look to a mortgage broker rather than just to their local bank because your credit will be inquired on just once and the mortgage broker will present you with multiple offers. Mortgage brokers do not charge home buyers. They earn a commission from the company you get your mortgage with.
Get Expert Advice on Calgary Real Estate
There are a number of reasons why using a real estate professional are beneficial when looking for Calgary homes for sale, but their knowledge of the marketplace is a huge asset to you. From the initial meeting with your REALTOR®, to house hunting, to handing you your new keys, a professional has the expertise to guide you through the real estate market with ease. Click here for more information on the benefits that working with a REALTOR® provides.
If you’re interested in the SW Calgary homes that are currently for sale, you can view them on our website here, or feel free to contact us on Twitter with any questions.
