Buying a new home is a big financial commitment, but it's an even bigger deal if you're buying your first home. Settling down is definitely a milestone that's worth celebrating, there are a bunch of things you need to know before you close the deal and pop the champagne.

Many first-time homebuyers make the mistake of not doing adequate research before they sign the dotted line. And when this happens, they get surprised about all the extra expenses, maintenance, mortgage options, monthly payments, and other fees that double the price of your budget.

Fortunately, all you need to do is to speak to a local mortgage agent to find the best mortgage option based on your financial stability and have enough funds to cover your needs. Choosing the best mortgage option can help you in the long run, allowing you to pay monthly fees and paying off loans without any hassle.

If you're ready to close the deal on your dream abode, it pays to know a few tips and tricks when buying a home so you can put yourself in a good position as a first-time homebuyer. Let's take a look!

1. Closing a Deal Isn't Cheap

When you purchase a home, there are more financial obligations you need to be aware of besides the listing price or the seller's offer. With that being said, real estate agents and local mortgage agents suggest that you budget at least three to four per cent of the purchase price since you need to pay off your closing costs.

Seeing as closing costs can also be a huge sum of money, you should include this in your budget so you won't be startled when you need to pay upfront.

2. Know Your Contract's Subjects

When you read through your contract, you'll see a bunch of subjects. These are important points that tell you what you can and cannot do at the moment. On a contract of purchase or sale, you'll often find the following:

• Subject to obtaining satisfactory financing
• Subject to receiving and approving an inspection report
• Subject to receiving and approving a property disclosure statement
• Subject to receiving and approving title search
• Subject to receiving and approving all strata data

Although these are the most commonly used "subjects," you can be subject to anything you like. However, don't expect sellers to adhere to your requests, especially if what you want is unreasonable.

3. Look For the Right Mortgage Options

As mentioned earlier, buying a home is a massive financial commitment. Most often than not, first-time homebuyers need to get a mortgage to pay off a home. With so much money on the line, it's best to speak to the best local mortgage agent to ensure that you choose a mortgage option that fits your lifestyle and financial capabilities.

When looking for a mortgage option, shop around and compare interest rates and terms. These are two crucial factors you need to consider since you'll be paying your mortgage monthly and in the long term.

4. Explore Your Neighborhood

You probably fell in love with the town while you were browsing for homes online. But remember — these pictures were posted to lure potential homebuyers, so in some cases, they may not be the same in real life. Because of this, taking a weekend trip to the town may be a good idea to explore the area before you commit to the location.