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How to Choose “The One”: Your Guide to Finding Your Family’s Perfect Home
Some people may make the mistake of rushing into renting or buying a property, only to realize later on that there’s something that they dislike or is missing. I’m not talking about missing shingles or whether it is up to code or not—a proper home inspection can easily catch that. I am talking about those key features and lifestyle elements you and your family are looking for that take the property from house to home. Those should play just as important of a role in your home search as whether the plumbing has been installed correctly.
Below are my best house hunting tips to ensure you choose a property that you will love.
#1 – Does it Check Your Boxes?
My best advice before you even begin your house hunt is to evaluate your current home. Create a list of items you love and that work well for you and your family. Then, create a list of things you don’t like about it or things you would like to change. These lists will help you decide on your “must haves” and your “want to haves.” and will be the lists you take house hunting with you. The home that checks most, if not all, of your boxes will be high on your potential buy list.
#2 – Renovation Potential
Does the house you like need work? Are you capable of taking on the renovation by contracting it out or adding on some sweat equity? This can be one of the best ways to ensure you will love the home now. Of course, a major renovation means you can make changes to the layout, adding or removing rooms as you desire, but even minor renovations, like changing the countertops or flooring, can help you fall in love and stay in love with a property.
#3 – Evaluate Size & Storage
Size demands can go both ways. Too small, and you will feel like you’re bursting at the seams and will need to upsize sooner than you had planned. Too large, and you will find it hard to make the home feel “homey”—there’s a lot of furniture required to fill a large home and you may become frustrated with the amount of daily maintenance required. And for storage, can you ever have too much storage? (Well, I guess there comes a point where you need to purge those junior kindergarten halloween costumes…)
Your home should be just big enough for your family and have the desired space to store your belongings.
#4 – Investigate the Neighbourhood
If you enjoy talking with your neighbors over the fence, walking for exercise, or meeting at the local coffee shop, see if your new neighbourhood can offer that. Is the home close to the places important to you, like your parents’ house, work, schools, and activities? If it’s not, will it bother you to drive 30 minutes to an hour to and from each day?
#5 – Pay Attention to Your Feelings
Do you get that warm and fuzzy feeling when you walk in the door? Does the home “speak” to you? Does it feel like home? Can you envision your family living there? Have you already begun imagining furniture arrangements?
#6 – Be Realistic
The house you end up with may not be your dream house. It’s imperative that you end up with a house you’re going to be happy living in, but you might also have to adjust your expectations if the home you want isn’t one you can afford. Working with an experienced local REALTOR® will help you determine if your budget will meet your wants and needs. But knowing the difference between the two is key. You may have to pass on some of your wants to have in order to get your needs.
It can be a delicate balance between taking the time to make sure a house is right for you and making sure you get to it before someone else does, especially in a seller’s market. I will ensure you look at all the houses that align with your budget, needs, and wants. Then, together, we will weigh both the practical and emotional factors. Think about the pros and cons of the houses you’re considering but consult your gut as well. Sometimes, when it’s the “the one,” you just know.
Home Staging: The Key to First Impressions When Selling Your Home
When you have a potential buyer request a viewing of your home, you have passed the first test. Your home meets some or most of their search criteria and the listing looks appealing enough for them to want to see more! One of the most important things you can do now to ensure your home makes a great first impression for buyers, both online and in person, is to stage your home.
Why Stage a Home For Sale?
Home staging has been growing in popularity for many years in the real estate industry. It’s important to understand that staging goes much further than placing furniture in a home that is going on the market for sale. The prime reasons staging has become commonplace is due to consumer demand and the increase of online home shopping.
Most, if not all, buyers first see a home online, so the listing photos matter…a lot. If your home is too cluttered and the photos are not appealing, the buyer may not even take the time to look in person. Sometimes all it takes is the wrong first impression for a potential buyer to dismiss your home entirely. If you don’t wow them at first, chances are you won’t wow them at all!
What is Home Staging?
Staging uses design and conceptualization techniques, and it might not seem like a big deal but staging your home makes a big difference when you’re trying to get the best possible price on the sale. People are more likely to purchase a home when it feels like a home to them. You want them to be able to picture their own things in your home, not view all of your family photographs and knicknacks. Staging helps people imagine themselves living in your space.
Is Home Staging Important to Sell a Home?
Home staging is effective because it emphasizes a property’s strengths and minimizes its weak points. It allows your home to be shown at its maximum potential, presenting a well-cared for home and creating a property that gives a positive first impression. It attracts the attention and admiration of house hunting buyers, and encourages them to consider how your property fits their requirements. According to the Real Estate Staging Association, staged homes spend 73% less time on the market than their un-staged counterparts.
Because homes are one the most valuable assets a seller has, it just makes sense to maximize your profit for a quicker and more seamless sale. Now more than ever, buyers are looking to simplify their lives. Staging and proper preparation are crucial elements of your home’s overall marketing plan. As your trusted real estate agent, I will work with you to determine whether staging is important for your home and to what degree. If it means a smoother sale, it’s worth taking on the task!
Seller’s Market: What It Is & How You Can Capitalize On It!
Have you taken the time to browse through the listings in Saskatoon? If you have, you may have noticed a lack of options available, especially homes ranging in price between $300,000 and $500,000. It’s all thanks to the seller’s market that we are currently experiencing!
Seller’s Market vs Buyer’s Market vs Balanced Market
Understanding the difference between a seller’s market, a buyer’s market, and a balanced market is important no matter if you’re buying a home, selling a home, or trying to do both at the same time.
A seller’s market signals that there is more demand for homes than there is supply. A buyer’s market, on the other hand, happens when there’s ample supply but less demand. In a buyer’s market, not only is there more inventory to choose from, but sellers must compete harder for the attention of buyers. In a seller’s market it’s the buyers that are in competition with each other.
Buying in a balanced market is a much more predictable endeavour. With an equal ratio of buyers and sellers, home prices stabilize and the atmosphere of transactions are more relaxed.
Before the Hunt Begins
A seller’s market favors sellers, since they have leverage over potential buyers. With a pool of eager buyers hoping to purchase their home, some sellers may see competing offers, bidding wars, and contracts favoring the seller. Some buyers may even forgo common requests, like home inspections, to make their offer more appealing! And it’s not uncommon for a house to sell for at or above list price in a seller’s market (here in Saskatoon, the benchmark price for single family homes this November was $323,400, up from $306,500 just 6 months ago and up from $306,500 a year ago!). In this type of market, some properties may be purchased by all-cash buyers, who can typically close faster than a buyer who needs to finance the purchase.
In addition to a seller’s market affecting the sale price favorably for sellers, there are other parts of the process that can be affected. The average time it takes for a home to sell is typically less in this type of market. For instance, in November, homes in Saskatoon averaged just 51 days on the market compared to 65 in 2019 and 74 in 2018, this is close to our 8 year low of 50 in 2014. Homes can also sometimes be in such high demand that they never officially get listed, instead they sell through what is known as the “back pocket”. This means the listing agent may first look to their personal network for a buyer or private deals before publicly listing the property.
How Can a Seller Capitalize on a Seller’s Market?
The best way to capitalize on a seller’s market is to work with an experienced local REALTOR®. We will ensure your home is priced “right” and marketed well. This is key in a sellers market, you want to ensure buyer’s don’t pass by your home if you are pricing too high.
With the “right” price your home could receive multiple offers and possibly even achieve over asking. Then, once there are offers on your home, we will help you understand the differences between those potential multiple offers, ensuring you choose the one that will best suit your needs and get you the most for your home. It’s possible you’ll be tempted to accept the first offer you receive, but if you have just a bit of patience in this market, with the help of your REALTOR® you could possibly see a higher offer!
If you’re thinking of listing in today’s seller’s market in Saskatoon, the best place to start is to determine the value of your home. Contact me for your free custom market evaluation today and let’s get started on getting you more for your property!
The Official Guide to House Hunting You Didn’t Know You Needed
There’s more to house-hunting than just going to a few open houses, although getting to know the market in advance is not a bad idea. Before you become a serious “House Hunter,” there are some important things to consider. Whether this is your first house or you have just sold an existing home and now need to find your next home, this will be a helpful guide to ensure you’re ready. The following tips will make house hunting a smooth process. Well…as smooth as possible.
Team Building: Finding Your Real Estate Help
Now’s the time to start assembling your real estate team. These are the professionals whose expert knowledge will help focus your house hunt, seal the deal, and get you the keys to your first home.
It’s important to find the right REALTOR® for you. After all, this is a huge decision and having a real estate agent on your team will be a big help. The right REALTOR® will get to know both you personally and professionally, so they fully understand not only your financial goals, but also your plans and how you intend to live in the home.
A Mortgage Specialist works for a lending institution, while an Independent Mortgage Broker is unaffiliated with any one lender. In either case, as a key member of your team, they will walk you through your different mortgage options. Ultimately, it is your mortgage broker or specialist who will determine how much home you can afford. They will provide you with a pre-approval that you can take to your REALTOR® to start your house hunting off with realistic expectations.
Real Estate Lawyers will review the purchase agreement, help negotiate modifications, prepare closing documents, do crucial research on the property and liens, and fact-check legal descriptions of the building and lot. They will also collect, hold, and disburse fees associated with buying a property. Therefore, they are a crucial part of your Team.
Lastly, a good Home Inspector can save you money and stress by identifying problems in a property before you buy. These issues may have you revising your offer or rescinding it altogether.
Before the Hunt Begins
Finding the right home for your budget can be a process. Your REALTOR® will utilize their understanding of your specific situation to help you search for homes that best fit your lifestyle. They’ll save you time by filtering through listings that do not meet your desired criteria.
Some key items to discuss with your Real Estate Agent before you begin hunting:
Size & Space – consider spatial needs now and in three to five years’ time
Lifestyle – consider indoor and outdoor maintenance and upkeep
Community – consider school catchment areas, proximity to amenities etc.
Transportation – consider parking, proximity to public transit, walk-ability, bike-friendliness and travel time to your work
Recreation – consider distance to trails, parks, and rec centres
Start Hunting
Ready to kick off your house hunt? Let your team know since you need to be ready to pounce when the right house comes up. Your REALTOR® will provide information about the markets you’re interested in and help you compare homes and neighbourhoods. They can also provide access to exclusive listing information, preview properties to ensure you’re only shown homes that meet your needs and budget, and make appointments to walk you through homes that interest you.
Buy a Home
Once you’ve found the right home it’s time to let your team take over.
Your REALTOR® moves from Counselor / Analyst / Shopping Assistant to the Negotiator / Administrator, ensuring your transaction goes as smoothly as possible. They will bring together all information, using their expertise, to compile a market analysis report to assist you in deciding on a competitive purchase price. They will negotiate on your behalf to get you the best possible deal.
Your Home Inspector will then provide you with a Home Inspection Report. The report will assist you and your real estate agent in deciding if the home is sound and the purchase price is appropriate.
Your Mortgage Specialist / Broker will prepare your loan documents.
Your Real Estate Lawyer will now begin the legal process, facilitating the transaction.
Whew! That’s a lot to throw at you. But if you follow this guide to house hunting, you will have a great start on your journey to finding your dream home. You’ll find the house you’ve always dreamed of and avoid a purchase you’ll regret. And soon it will be possession day and you can move in!
7 Ways to Boost Your Home’s Curb Appeal for Sale
Curb appeal is one of the most important selling factors for a home. It’s the very first impression potential buyers ever have, and it can even be the make-or-break factor that decides whether they even step inside the door at all. That’s why, if you’re planning on selling your home, it should be one of the first places you focus your home-staging efforts to ensure a quick and seamless sale!
Give It a Good Clean
Dirt and grime on the exterior of a home very rarely accumulate in just one day, so it’s easy not to notice the subtle build-up over time. To us, it may not necessarily feel unclean because we saw it just yesterday and it looked just the same! But to a potential buyer, that slightly “off” tinge can stick out like a sore thumb.
Take a pressure washer to the outside of the home to blast away dirt, grime, and cobwebs. And if you’ve got a paved driveway, don’t forget to give that a spray, too—you’ll be amazed at just how much of a difference a bit of water can make! Don’t forget about the windows and gutters, as well.
Give It a Fresh Coat of Paint
Whether the colour is looking out-of-place for current style trends or the weather has just taken its toll, a fresh coat of paint can always be a good ideal for boosting your home’s curb appeal for sale! To refresh the existing colour, simple scrape off a small bit of the paint and bring it to your local paint store to have it properly matched. Or, to give the house a completely new appearance, find a nice, neutral shade and complimentary colours for the trim and doors that can give it the facelift it needs! No matter which you decide to do, though, don’t forget to prep the surface to ensure long-lasting performance.
Consider Installing Vinyl Siding
While it may add a bit of work to your plate up-front to install, vinyl siding can not only boost curb appeal, but it may even help to boost your home’s value, too! Very durable and incredibly low-maintenance, potential buyers will love how much time they will save when the only upkeep they’ll need to do is a quick spray with a power washer every so often! Plus, if you’re really set on having colour, you can even buy it in a wide variety of hues that will never need a refresh of paint ever again!
Check the Roof
If you’ve had the roof repaired or replaced in the last couple of years, there’s a good chance you might not have to do much more than a quick cleaning job to clear away dirt and lost artifacts that always seem to make their way up there. However, if it has been a while, you may want to bring in a roofing professional to give the proper maintenance that it might need. Not only can this add to curb appeal, but potential home buyers will also be much happier to hear they won’t have to worry about potential costly repairs in the near future should bad weather hit.
Love on Your Landscape
Especially in summer, nothing sticks out more than an un-mown lawn with leaves, sticks, and debris flung across it. It gives the home the appearance that care hasn’t been taken in maintaining the exterior, and almost immediately the mind anticipates that the interior will be much the same.
To ensure your landscape is in tip-top shape to offer the most curb appeal possible, be sure to regularly mow your lawn when in season, and prune overgrown shrubs and trees. If you have a garden, spend some time weeding and mulching to add a polished look, and maybe pop in a few annuals for some colour. If you don’t have any garden space, you can still add some colour with a few potted plants by the door, too!
Other Small Ways to Boost Your Curb Appeal
Consider replacing house numbers. Old house numbers that are weathered and falling off not only make it harder for potential buyers to find your home, but it can take away from all the hard work you’ve done to spruce up your exterior!
Update old hardware. All potential buyers see when they notice a falling apart mailbox or a loose doorbell is more time and money they would have to spend if they were to buy your house.
Check exterior bulbs. It’s easy to forget about the bulbs we never look at once we’re in the house, but if you ever have an evening viewing, it’s hard for buyer’s to miss!
If you want your home to make the best first impression with potential buyers, a little time spent in boosting your curb appeal can make a world of difference. And it doesn’t have to be a terribly costly affair either! Even by doing just a couple of these property pampering projects, you can really amp up the WOW factor to get possible new homeowners excited to get inside and see what it’s all about!
Renting vs Buying: Which is Better for You?
From the day that you move out of your family house, you dream of the day when you finally stop paying rent and buy your first home. But, as you may have discovered, buying a home is not quite as simple as it seems! There is a lot to consider when deciding whether or not to make the move into homeownership.
By buying a house, you’ll be taking on all the pros of being a homeowner versus a renter. But you’ll also be taking on quite a bit of responsibility and giving up on some of the advantages that come with being a tenant. That’s why, before you start your home search, it’s important to weigh the pros and cons of both renting and buying to decide whether or not you’re ready to become a first time homeowner.
Should You Buy or Rent: The Pros & Cons of Each
Repairs & Maintenance
First up in our comparison is every adult’s favourite topic of discussion about the home—repairs. As a tenant, the only thing you have to do when it comes to ongoing repairs and maintenance around the home and yard is call the landlord. They are typically responsible for taking care of any work that needs to be done—unless you’ve discussed an alternate arrangement—so you can just sit back and relax.
As a homeowner, though, repairs and ongoing maintenance are entirely your own responsibility. You’ll need to not only figure out what is wrong all on your own, but you’ll also be in charge of either fixing it yourself or calling in a professional to do it for you, costing you both time and money.
Decorating & Design
If you’ve ever wanted to switch up the light fixtures or even just paint a wall as a tenant, chances are you’ve experienced the headache of getting anything approved with your landlord. Since you don’t own the home as a renter, you need to ask permission from the owner before making any lasting changes. Otherwise, you could end up with a missing damage deposit when it comes time to move out.
If you own your home, though, any decor or design changes you wish to make, you can simply do! That picture-perfect bathroom accent wall you saw on Pinterest? Throw on some coveralls and get to work! The three-tiered deck you’ve been dreaming of? Stop by the hardware store and start building! The sky is your limit in your own house (well…the sky and your budget, of course!).
Flexibility
Decided you don’t like the neighbours and want to make a move? As a rental property tenant, just give your landlord the appropriate notice that you’ll be moving out and leave it all behind! As a homeowner, though, you’ll either need to sell the house to turn it into a rental property of your own to make a change.
Paying Rent vs Paying a Mortgage
While both renting and owning require you to make a monthly payment, they aren’t quite the same. Rent is similar to paying for a hotel room—it is an agreement between you and the property owner that you will financially compensate them for allowing you to stay in their space. A mortgage is more like making payments on your car—the more payments you make, the more of the home you own. This is called equity.
Another difference between the two payments is the amount being paid. Depending on the rental agreement between you and your landlord, your rent could be subject to change at your landlord’s discretion. This could leave you with a rent you can suddenly no longer afford, should an increase happen at the time of renewal. With a fixed-rate mortgage, though, you are guaranteed the same payments for the entire length of your term!
Pet-Friendliness
If you have a furry friend like me, you are no stranger to the struggle of finding a pet-friendly rental property. Most rentals don’t even allow for pets and those that do, often require an additional deposit on top of your down payment. But if you own your home, you can have as many pets as you want, no deposits or approvals required!
Insurance
Every landlord is required to purchase insurance for their rental properties that can cover the home in a variety of ways. This doesn’t, however, include any of your possessions as the renter. If you are renting a property, you have the option of purchasing your own tenant’s insurance to cover your belongings in the home, but it isn’t required! On the other hand, as a homeowner, you are required to purchase home insurance to protect your property.
Other Differences Between Renting & Buying
Tax Benefits – Every interest payment a homeowner makes on their mortgage is a tax deduction later!
Security – Owning a home, the only ones who have a key to your property are those you’ve given them to. As a renter, though, your landlord also has access at any time, along with anyone they’ve given a key to.
Appliances – As a renter, you are subject to whatever appliances are in the home, which may not be quite what you want. As a homeowner, you can choose whatever appliances fit your preferences and budget!
As a renter, you’ll never have the pride and autonomy that comes with home ownership, but there are quite a few advantages to renting that may be better suited for your lifestyle right now. So before making the switch, take some time to seriously consider the benefits and disadvantages of each to decide which is right for you.
And if buying a home is where your heart is at, though, I’m happy to help! Contact me and let’s get started on finding you your dream home today!
Helpful Hints for Moving
Book Your Move
Whether you decide to hire a moving company or do the move yourself, you will need to make the appropriate arrangements.
When using a moving company you will need to decide what, if anything, you want them to pack up for you and what you want to be responsible for yourself. It is never too soon to begin planning for a move, so make sure to pick your moving day and book your moving company as soon as possible.
If you have chosen to do the move yourself, remember that you may need to rent a truck, pick up your packing supplies and reserve a few friends to help you with your move. Remember, the more organized you are, the easier your moving day will be.
Change of Address
Make sure to fill out a “Change of Address” form at your local Post Office, using your appropriate effective date, to ensure that all mail is forwarded to your new address. This will help you to keep track of those places you have not already changed your address with directly. Sending out “Change of Address” cards from the Post Office well before your moving day will also help to inform people that you will have a new address so that they may update their records.
Other people to notify:
• Financial Institutions
• Social, Athletic, Religious, Civic, or Business Affiliations
• Family Doctors, Dentists, and Pharmacies
• Auto Insurance & Driver’s License
Cancelling & Transferring of Services
Whether we rent or own our current residences, there are a number of different services that we use. It is very important to notify these providers of services of the changes that you need to make.
Don’t forget to call about your:
• Water & Waste Removal
• Electric & Gas Services
• Telephone & Television Services
• Newspaper Subscriptions
Costs and Considerations When Buying a Home
Beginning a home search is exciting and many people just jump right in without considering all the elements that make a home truly right for them. It is a complicated and personal process. With an unsuitable choice, you could lose money, waste time and effort relocating, or even put your family’s health in danger.
Choosing a Neighbourhood
Remember that you can renovate a house, but neighbourhoods take years to change and there is no guarantee they will change for the better! On the other hand, if you really love a certain part of town but it’s out of your price range, you may way to consider buying a less-than-perfect home then doing renovations. They can be quite expensive so try to make improvements that will be reflected in the value when you sell. These renovations have been found to have the greatest payback:
• kitchen 70%
• bathroom 68%
• interior paint 65%
• exterior painting 62%
Tips on Choosing a Suitable Neighbourhood
• When you find a locale you like, take a walk around it. See what it’s like from street level.
• Are the people friendly?
• Are there stores and recreation facilities nearby?
• Contact the local school board if you have children. Do local schools provide good education opportunities? If applicable, are there private/religious schools?
Figure Out What You Can Afford
Consider how much you currently need to live on and how much you actually have leftover every month. People have a tendency to create budgets that look nothing like reality – when I should have $400 leftover, for some reason I only have half that.
Consider these basic costs of buying a new home:
• A down payment of several thousand dollars is required
• Monthly mortgage payments can be 1/3 of the average person’s annual net income
• You may want to pay for a home inspection. Make it a thorough inspection of the home. Ask the inspector to check for asbestos, pest infestation and lead.
• Consider moving costs. This can range from a couple hundred to several thousand dollars depending on the distance of your move and the number of belongings.
Financing
The sort of home you can afford depends on several things:
• How much you have saved
• How much you earn
• Past earnings
• Your credit rating
If you are concerned about your credit rating, you can usually get a free copy of your rating report from a local credit bureau. Normally all that is required is a couple of pieces of photo identification. Remember, a few late payments or disputed bills can damage your record. Try to pay everything on time and don’t have more than two credit cards. Having a bad rating makes it difficult to get a mortgage, or you end up paying more for your mortgage as a form of insurance to the lender.
Pre-Qualification
Documents from a bank or other lender that indicate that you have the financing to back up an offer on a house verifies pre-qualification. This is a free service and most lenders are happy to sit down with prospective buyers to figure out how much they can afford. Having an accurate idea of a price range you can manage will save time in the bidding process. If there are several people making offers on your dream home, being pre-qualified can make your offer more attractive, since financing is not a question. However, keep in mind that lending institutions will base their final decision about a mortgage on the ability of the buyer to service the debt as well as the property. Most lenders say the two components go hand in hand – the buyer with the ability to repay a mortgage and the property as security in the event of default on payment.
By considering all these points, you can worry less about the process of buying and get busy finding your ideal home!
Pricing Too High
Starting out with too high of a listing price will add to the stress of selling your home.
Ideally, during the first few weeks, your home should be overflowing with activity. Listing agents will market and promote your home to other agents who are working with homebuyers, increasing your personal sales force.
If you have overpriced, chances are fewer agents will promote your home to their clients. As REALTORS®, it is their job to know the market demand and fair market value of a home. If your home was dramatically priced above market value, you will essentially be wasting your time.
Dropping Your Price Too Late
Your house could take longer to sell if you start with a high list price and then drop it later. By this point, your house has become “old news” and has lost the chance of overflowing activity that you would have received with a realistic price.
Even if you were to sell your home at an above market price to an uninformed buyer, that buyer will likely need a mortgage. Their lender may require an appraisal. If comparable sales and current market conditions do not support your sales price, the house won’t appraise and the deal will then fall apart.
If your home sits on the market a while, it is harder to get a good offer. Overpricing your home in the beginning, then dropping the price may look like you are desperate to sell and potential buyers may make lower offers. You could actually end up settling for a lower price than you would have normally received.
Of course, you want to receive the highest price for your home. If you start out with a list price that is too high, you likely interviewed other agents who didn’t get the listing.
If your listing agent engages in “buying” listings if your home didn’t sell in x number of days on the market, chances are they probably pushed through other agents to tell you what you want to hear. Now you’ve ended up with an agent who was good at selling you, but not good at selling your home and got paid the commission for it.
It’s tempting to choose the agent who tells you exactly what you want to hear. Instead, look for honest advice agents will give. This way you won’t be frustrated about why your house didn’t sell close enough to the price you had listed it for.
Planning Ahead for a New Home
There are countless advantages to purchasing a new home. You are able to build equity, enjoy pride of ownership, and truly make a home your own. If you are planning to buy property in the near future, preparing now can help you save time and money. Being prepared may also give you an advantage over other buyers. Here are a few tips to consider prior to your home search.
Know Your Bottom Line Before You Start Looking at Homes
I’m sure you’ve heard this before, but think about more than just knowing what price you are willing to pay. Consider the distance you’re willing to commute to work, the number of bedrooms and bathrooms you require and what you need in terms of local amenities. If you have children, you’ll likely want to consider schools and parks in the area. By determining your bottom line before you begin the search for a home you can avoid making snap decisions based on emotional responses to attractive home features.
Credit Check
Life happens, bad credit happens. But who wants to discover that they have a bad credit rating after finding the home of their dreams? Before meeting a lender, you can obtain a copy of your report which will give you an opportunity to take care of any unsettled debts. You can obtain a copy of your credit report from TransUnion or Equifax.
Avoid Major Purchases Prior to Buying a Home
Lenders tend to be uneasy when they see potential homeowners stretch their disposable income into buying a car or boat for example. Such purchases can make it difficult to obtain a mortgage or may lower the amount you can be approved for.
Anticipate Higher Interest Rates
Recalculate the above maximum monthly mortgage payment based on higher interest rates. Ask yourself if you can afford to pay a higher monthly payment without sacrificing other commitments.
Determine Your Cash Flow at the Time of Purchase
There are various fees involved with a real estate transaction which are outlined here. Moving from a rental suite, you should be prepared for expenses that may have been previously included with your rent such as heat, water, electricity or cable.
Your Paperwork Should Be in Order
Lenders will often need to see bank statements, pay stubs, and tax documents for the past two years.
Get Pre-Qualified for a Loan
Once you have a calculated budget you can live with, approach a lender to find out if you can get pre-qualified for a mortgage and how much you can spend on a home.
Buying a home is not only a lifestyle change, but it’s also an important investment. To make the most of your investment, plan ahead to find the right home and the best rates.
