Here are 5 things you should consider if you are thinking of buying this Spring. - especially if you are a first-time home buyer!
1. Hire an Experienced Realtor:A realtor is your best tool when it comes to the housing market. Be sure to pick a good one! A realtor can guide you through the entire purchase process and they are usually connected to top-notch mortgage agents, home inspectors and lawyers as part of their team. Realtors often also have access to listings that are not available publicly yet.
2. Get Pre-Approved:
An essential task to do prior to starting your home search, is to get pre-approved for a mortgage! A mortgage pre-approval is NOT an approval, and does not commit you to a single lender, but it does give information that you can direct you towards your home ownership. Pre-approval helps to determine your price range and budget, as well as guaranteeing the interest rate for 60-90 days while you search for that perfect home. Having a pre-approval also lets the seller know that securing financing should not be an issue. Which gives sellers peace of mind to know they won’t be wasting their time with someone who couldn’t afford their house in the first place. This is extremely beneficial in today's competitive market when there are multiple offers coming in!
3. Manage Your Expectations:
When it comes to house hunting, it is important to understand and manage your expectations right from the start. All potential buyers should put together a budget, which will assist in understanding what is affordable - and stick with it. You also need to be realistic about what you need in a home, versus what you want in a home. More than likely, you will have to make some compromises to your list so consider homes that have the potential to make the changes you want to make it your dream.
4. Prepare Your Down Payment:
If you have been thinking about purchasing a home, odds are you already have a down payment ready or have at least started saving. A down payment is the amount of money paid up front as a lump-sum payment when you buy a home. The amount of the down payment is deducted from the overall price of the home, the balance of which is covered by a mortgage loan. A down payment can come from personal savings, gifts or inheritances, borrowed money (for example, a secured home credit line), and first-time homebuyers can also utilize their RRSPs up to $35,000!
5. Don’t Forget the Home Inspection:
Once you find a home you think you are ready to buy, make sure not to skimp on the inspection! A proper inspection is important for buyer security as they can uncover potential issues that may cost you money down the line. In today's competitive market, many sellers are choosing to do a pre-home inspection in advance of the sale so that all potential buyer's can review the documents ahead of making an offer.