After reading this, you can come to your own conclusion, but as a first-time buyer, you must understand the rules and requirements when undertaking such a journey. Have no fear, the real estate guy is here, to ensure you can financially and emotionally prepare for this process.

Let us begin to explore the financial preparation that would be required by asking the question of how much can you afford? Another way to express this would be to establish and confirm your debt service ratio. What does this mean? This is a financial metric used to assess your ability to generate enough money to cover your financial obligations such as loans. In simple terms, it seeks to determine if you can really afford to purchase the property? I understand you have been renting for a while and you ‘know’ you can afford a mortgage but, according to the financial institutions, your debt service ratio may be too low to sustain a mortgage. Thus, unless there are substantial changes, that purchase would remain an elusive goal. My advice would be to get prequalified and I might even recommend getting prequalified at various financial institutions. This prequalification would indicate what you can afford as well as an estimate of your monthly payments. Information like this can put you ahead of others who are not sure where they stand financially. There are even agents who would refuse to show you an available property if you cannot give evidence of financial prequalification. As such, a good relationship with a financial institution can greatly increase your chances of a successful property purchase.

Do you know what you want? It seems like a straightforward question but the answer can be quite different for everyone. For example, many people would like a single-unit house while others may prefer a condo, apartment, or a townhouse based on their location, comfort, preferences, and budget. While the demand for gated communities is on the rise, many individuals still worry about flooding and the ease of access to amenities when considering a home purchase. Therefore, it is extremely important to understand the pros and cons of each of these decisions since it would ultimately impact your future and that of your family.

Next, we should also consider working with a great real estate agent to locate a suitable property. Why? In short, they have access to information that you do not. Have you ever heard of the Elite List? Chances are, you haven’t. A great agent can facilitate early showings, private viewings, and exclusive open houses. Additionally, anyone can go online and search the same places that everyone else does in an effort to find your perfect property. However, a great agent would know what you seek, may have access to properties before they even appear on the market, and can negotiate prices and terms that make your purchase a win-win for both the buyer and seller. Have you ever wondered what happens to all the real estate deals where the sellers are willing to part with a property at a huge discount? Why didn’t you know about it? Reality is, it costs you nothing to find and work with a great buyer’s agent.

Let’s then assume that you have found the perfect property. What happens next? Once your offer to purchase is in alignment with the seller’s expectations, the buying process can formally begin. In a subsequent article, we would explore the next steps within the process of purchasing property in Trinidad and Tobago. We would highlight the things you should know and ask to ensure your transaction is smooth and seamless. In the meantime, get financially prequalified and let’s start exploring your options.