Things to Keep in Mind Before You Start House Hunting
You are at an important milestone in your life. Buying a home! Whether you are a first-time homebuyer or you have gone through the buying process before, buying a home can be exciting. To make the home buying process as smooth as possible you should do some preparation and research before jumping into it. Preparation before buying can make the process less stressful, quicker, and more enjoyable for you. This blog is going to help you understand some of the pre-home buying preparations you should keep in mind before buying.
Determine your housing needs
If you are looking for a house and are planning to call it home for a long time you want to make sure that it fits most of your needs. It is a good idea to make a list of priorities from most to least important, in case you can’t get a house that fits all your needs. Another factor to consider is the location of the home. Some things to keep in mind when determining the location of your home are distance to school, the city, parks, grocery stores, etc….
Know all the costs
Knowing all the costs is important before you start the home buying process so you can factor them into your budget. Some fees you may not be aware of are…
- Legal fees
- Home inspection fees
- Appraisal fees
- Insurance
- Land transfer fees
- Renovations and repairs
- Utility fees
Are you pre-approved?
Working with a mortgage broker to get a pre-approval is a great way to understand what you can afford. During the pre-approval process, a broker will look through your finances, credit history, and situation to determine the maximum amount you will get approved for. A pre-approval can also lock in an interest rate for 60 – 120 days and estimate your mortgage payment. You will need to provide your identification documents, proof of employment, proof of the down payment, and information about your assets and liabilities.
Know your credit score
Before you start house hunting it is a good idea to look into what your credit score is. Your credit score can affect the mortgage size you can get approved for. Lenders use credit scores to get an understanding of your past debt payment history, so if you have a lower credit score you may not get approved for what you expected. Credit scores normally range from 0-900. The higher the credit score the better. It is important to be aware of your score before house-hunting because if your score is on the low end, you may need to spend some time improving it. Here are 3 easy tips you can use to start improving your credit score today. You can use tools like Credit Karma to get a free credit score check.
Down payment options
Having a down payment saved up before you start looking for a house can make the mortgage process quicker. If you start looking for a home before you have a down payment you may find a home you like, but not be able to afford the down payment and get outbid. There are many options you can look into to pay for a down payment. Some downpayment sources are; savings, gifted, RRSP, or use down payment assistance programs.
A mortgage broker can help you through the home buying process. The ShopMortgages.ca team are experts in the industry and can assist you with any questions you may have. If you have any questions call us at 519-250-4848 and talk to a ShopMortgages.ca broker.
