Are you considering buying a home? It may not be as straight forward as some may think. There are several topics you should be aware of prior to beginning that journey. Below are 6 things to consider as you begin the process of buying a house.
#1 Get Pre-Approved
Getting pre-approved is different than pre-qualified. Pre-approved means they – the bank or mortgage broker – has looked at your finances and have determined the amount of your loan. This will allow you to spend your time looking at houses you can afford and not waste your time looking at houses outside your budget. Getting pre-approved should be the first step towards buying a home. Keep in mind hiding costs as well. Lawyer’s fees, transfer taxes, moving fees, utilities, etc. Don’t let these costs sneak up on you.
#2 Relax Your Spending.
6 months before you plan on applying for a mortgage loan, you should sit on your money. Financial institutions want to see that you are a stable investment. Now is not the time to make a large purchase or max your credit cards.
#3 Make Your Deposit Accessible
Stocks or investments are great, but only if they are accessible. The seller of a home is not going to accept them as a deposit, they want cash (or a cheque). Don’t wait until the last minute to liquidate your assets for a deposit. You may find a delay between your request and actually receiving the funds. You don’t want your offer to fall through due to lack of a deposit.
#4 Don’t Buy The Best House On The Street (unless you want to)
This is more of a consideration than a rule. If you are looking at a house as an investment, then you may not want to purchase the best house on the street. That house is the one that will be driving the value of the other houses. As such, the worst house on the street tends to grow in value the most. That being said, If you find the perfect home and it just so happens to be the best house on the street, just be aware that it will not be the most profitable if you were to sell in the future.
#5 Get A Home Inspection
Never buy a home without a home inspection. There are significant costs that can be avoided by simply getting a home inspection. You could uncover something that may make the buying decision for you. Better to find out any issues before you buy, then after when your budget is already spent.
#6 Inspect The Neighborhood Too!
We viewed a home years ago and fell in love with the inside. Then as we viewed the backyard we noticed the neighbor, a creepy looking older man standing in his backyard in a bathrobe. His presence made the backyard an uncomfortable area to visit. Then I drove by in the evening and discovered the neighbor on the other side was an electrician and operated the business from his home. He frequently parked his 3 business vans on his front yard. It resembled a car dealership. Needless to say, we did not buy the house. That is just one example but what about noisy neighbors? Or what about the restaurant you did not notice that frequently gives off an interesting aroma or a church whose parking lot is too small so the parishioners’ cars line the streets every Sunday? There are many considerations regarding the neighborhood that you should take into account.
This list is by no means exhaustive, but will help make sure your experience in buying a home is a pleasant one with as few costly surprises or regrets as possible.
If you would like to learn more about buying a home, or to work with someone who will make the experience as pleasant for you as possible, please contact Ryan Ligeza.
