6 Factors to Consider Before Buying a Home
Buying a house on your mind? Then you know, it is not just about paying the money. It is so much more than just picking up a random property and signing the paperwork. There are multiple factors and aspects related to buying a home that you need to keep in mind before making one of the biggest financial decisions of your life.
When you start scheduling visits to the selected property, it is important to look beyond just the number of bedrooms or the walk-in closet. You need to have access to the proper tools and resources to sail through the home buying process smoothly. And right now, when the entire world is going through a health crisis, navigating through real estate without proper research can be a risky affair. Especially when people are opting for virtual home tours, the need to dig deep in the history of the property that you have been eyeing and the other related factors is crucial.
Doesn’t matter if it’s your first time purchasing a home or you are a seasoned investor. This article will help you get through the process of buying your dream home without any hassle.
1. Keep Access to Additional Money
Everyone knows that buying a home in Canada is a pricey affair. People save their entire lives to accumulate enough deposits to buy their dream home. While saving for a deposit should always be your priority, you should also start saving some 2%-3% of the total home price to take care of closing costs. There are some additional costs that might come as a surprise expense while signing the paperwork. To avoid such a red-flag situation, you must speak with your real estate agent as they have a fair idea of how much over and above would you really need to spend.
2. Start with Getting Yourself Pre-Approved
The most common mistake that many prospective homeowners make is finalizing a property without getting preapproved. When you get pre-approved, you get an idea of the specific loan amount you can get. How do you wonder? That’s because getting pre-approved means the potential lender will check your credit history beforehand to give you an estimate. It might seem a bit tedious, but having a clear picture of your coming mortgage payments and how much you can actually qualify for will eventually save you a lot of time.
3. First Time Homebuyer Incentives Is a Real Thing
While buying a home is one of the biggest money transactions for an individual, it doesn’t necessarily have to be the most expensive one. You can share some serious money while purchasing a home by accessing Canada’s first-time homebuyer incentives, which include incentives, such as Home Buyers’ Plan. The HBP benefits the first-time homebuyers to get away with up to $35,000 from their RRSP which can be used to pay your down payment. Then there are other incentives, such as the GST/HST New Housing Rebate or the $5,000 Home Buyers’ Amount. Not only this but there is also the Land Transfer Tax Refund that benefits first-time homebuyers in Ontario, British Columbia or Prince Edward Island.
4. Don’t Hesitate Asking Questions?
Why does the current owner want to sell his or her home? What all is included in the sale? When was the last time they renovated the roof? What is the neighbourhood like? These might seem petty questions, but trust us, the most basic of queries are the most important ones. Finding the right house which doesn’t force you to put in more and more money as you move in is super important. An address that’s in close vicinity to public schools, malls and shopping complexes is a win-win deal any given day.
5. Home Inspection is a Must
To make an informed decision before you sign the agreement, make sure to get the home inspected by a home inspector. Checking out your hoped-for home for the quality of plumbing, to get an overview of maintenance costs or to get whether there is an imminent threat of pest infection would be a smart move.
6. Don’t Make Homebuying an Emotional Process
Many individuals in Canada rush into buying a home because they like a prospective property and get emotionally attached to it. There is a fear of missing out especially in real-estate markets like Toronto and Vancouver where popular properties often attract multiple offers. You don’t need to go over your budget simply because you are in love with the looks of the house. You must consider all the important conditions before making that final decision.
While all the above factors are non-negotiable when it comes to buying a home, there is one other factor that you have the option to go for. And that is the services of a realtor or a real estate agent. Yes, you can check property listings, make an offer and even sign an agreement on your own, but with an experienced real estate agent, the process becomes much easier. Joe Maharana is a reliable name across the GTA offering tailored real estate solutions that come with an elevated standard of living. Book your appointment today!