Before you start browsing for homes, it's important to determine what you can afford. Lenders will pre-approve buyers up to a maximum amount you may be able to borrow based on several variables, such as income and credit history.

Knowing how much lenders are prepared to loan you (and their rates) allows you to shop within your pre-approved parameters, giving you peace of mind that you'll fall in love with a house that's within your price range.

A Sherwood mortgage agent can secure pre-approvals from our list of lenders to make your shopping experience seamless. We are an independent mortgage brokerage, meaning we have complete freedom to shop the housing market for your ideal mortgage rates once a deal is confirmed.

The pre-approval process also helps us identify any obstacles that can make financing your home purchase more challenging, providing the time to find an appropriate solution before a purchase is made.

First time buyers should be aware that a deposit must be submitted alongside an offer to purchase.

The deposit is only cashed when an actual sale is firm, but is otherwise intended to demonstrate to the seller that you're a serious buyer. Be sure to ask your real estate agent about an appropriate value to offer on deposit, and the circumstances in which you could forfeit your deposit.

It's not a significant expense, usually averaging under $500, so we recommend a home inspection as part of the home buying process.

Ask your real estate agent to include that any offer to purchase you submit is contingent on an inspection of the property by a qualified professional. A certified home inspector can assess the condition of the home, and provide reports detailing areas that require repair or attention.

This is vital in understanding the true value of the property, not what the seller says it is.

Essential to mortgage financing, an appraisal is a condition in some mortgage agreements provided by a lender in order to gauge the value of the home.

The price of appraisal is dependent on the property - unique homes, remote locations, and large estates tend to have higher appraisal fees, for example. This is an added expense that may come up in your mortgage commitment.

Be sure to consult with your mortgage agent or broker regarding additional costs that may arise in the home buying process, including land transfer taxes, property surveys, adjustment costs, title insurance, mortgage default insurance, etc.

Your down payment is the amount of cash you'll provide towards the purchase. Added together with the amount provided by a lender equals the total house purchase price.

A down payment for first time buyers in Ontario (for example) must be as low as 5% (certain conditions apply) of the purchase price (e.g. $250,000 x 5% = $12,500).

First time buyers should be aware of additional costs they may incur when buying a home, as they can quickly add up. These can include:

• Land Transfer Taxes
• Title Insurance
• Home Insurance
• Lawyer's Fees
• Moving Costs
• Incidentals

When you've determined which closing costs apply to your property purchase, you can either deduct the amount from your cash available for down payment, or plan to put the amount aside prior to the closing date (the date that you take possession of the home and property).

After finalizing closing costs, there are a few more housekeeping tasks to take note of.

Beyond home mortgage payments, there are property taxes and potential maintenance fees to consider - it's rare to purchase a home without adding a few changes to make it truly your own. Try to plan ahead and have some additional funds available to make your new house a home.