When most people start their home-buying journey, they usually start by listing common necessities: school district, commute time, and the type of neighbourhood they are looking for. However, what yardsticks you use to guide your search is important. Depending on how effectively you pick the yardsticks to use to guide your search, you may find the appropriate property or the wrong one.
Homebuyers should first start by considering the type of property they are looking for. This includes the number of bedrooms, bathrooms, and whether they would prefer a house or condo. However, how can this be accomplished? Here is a simple guide to help you get started on your next search!
1. Start with a plan, don’t leave it to chance
It’s important to create a realistic plan before you even start thinking about purchasing or renting a home. Place possible price limits, decide on the area of town where you want to live, and evaluate how much you can afford. You should also weigh the pros and cons of buying vs renting. This will lead you to your likes and dislikes of owning property. Your budget will help determine what kinds of homes are available to you based on how much money you want to spend per month or year. How long you plan on staying in the home is also an important factor because some mortgages require a 20-25% down payment while others only require 3%.
2. Get prequalified for a mortgage before you start buying anything!
You should also think about mortgage options depending on your yearly income and the type of house you want. It’s very difficult to buy a home if you don’t have the financial resources to qualify for a mortgage. A prequalified mortgage means that your lender has looked at your finances and determined that you likely won’t be paying more than the total cost of the home in the near future. Lenders have different qualifications that they will want from you.
Many first-time homebuyers have to deal with the dilemma of saving enough money for a down payment on a house. Different lenders will require anything from 0.5% of the total purchase price to 30%. How much you are able to contribute can depend on many factors, including your job stability, income level, household size, credit score, debt-to-income ratio, and previous financial commitments.
3. What are some things to consider when searching for a home?
The first thing you should consider are factors that are important to you. You may want better schools for your children, more space, fewer neighbours, or be able to view the city lights. Before looking at homes do research about each neighbourhood. Once you narrow it down, the real estate agents will show you different listings in your price range. The most important considerations are the location, and how long you plan to stay in the home. Location is very important because it will determine commuting distance, commute time, and crime rates if applicable.
4. How do you find a realtor?
Whether you are house hunting, looking to sell your current property, or if you want to develop a rental strategy for your holdings, find a realtor that suits these needs and is flexible with price and locations. We all know how difficult the job market is. So, if you are in the process of putting your home on the market or are l