Purchasing a home can be a daunting experience for any prospective homebuyer, particularly first-time buyers. We have devised this article to ensure that you are aware of the process of purchasing a home, but also things to consider when calculating the cost of owning your own home. Being prepared is vital for any home purchase. If you are looking enough to have the assistance of a reputable real estate agent, many of your queries should be answered. However, this is not always the case.
A simple overview of the home buying process in Canada:
- Even if you already own a home or a first-time buying, we suggest having your mortgage pre-approved.
- Shop around the housing market, and budget according to your pre-approval offer
- Once you have located your dream home, you will make an offer of purchase, place a deposit and we recommend having a home inspection.
- You will then go through the full mortgage approval process
- Your deal should then ‘close,’ and you will receive the keys to your new home
On paper, it may seem simple, but it there are still things that you will need to consider when purchasing a home. We have devised four key steps that we feel that you need to know before you purchase a home.
- Ensure that you are pre-approved
We have already highlighted the importance of this step, but you do not want to start shopping around the housing market without having a realistic budget. Without being pre-approved, you are effectively starting the process blindly, not only that you do not want to be disappointed if you select a home that you cannot afford, or if a lender does not accept you. Not only that, there will be some real estate agents that could refuse to work with you until you have had the pre-approval from a lender.
- Keep your budget in mind
We do recommend having a realistic budget, and to also consider possibilities such as:
- Are you planning on starting a family? Will your mortgage payments remain affordable
- What if you lost your job? Could you afford to continue repaying your mortgage until you sourced a new role?
- Have a real estate agent
It is not a necessity to have a real estate agent when purchasing a home, but it is advised. Mainly if you are a first-time buyer, having a knowledgeable real estate agent will make the process far more manageable.
- Remain open
We understand that when investing a significant amount of money into a home, you want it to be perfect. However, there may be a home that may require much work and is well within your budget. Remember that when that home is yours, you can make it your own; the wallpaper can be changed, you can fit your perfect kitchen. When selecting your home, you should remain concerned about the condition of the home, such as the plumbing, roof, and the layout of the house.