There are few things in life we find as exciting and at the same time overwhelming as starting on the road to home ownership. It’s likely you’ll be the on the receiving end of advice from parents, family, and friends, all of course with the best of intentions.
Often this may confuse the situation further, so having a picture of how to make an informed decision is helpful. Some people are very organized, making lists of pros and cons and doing tons of research. Balancing that wish list with what’s realistic can be a challenge. That’s why it always good to talk to a Brampton mortgage broker like myself to get professional advice.
The following top 5 steps in the home buying process will be helpful to the list makers and non list makers alike:
Step 1
A good first step is making a budget to save up for a down payment and any additional costs. This has the benefit of determining the price of the home you can afford.
Step 2
There are different types of mortgages, and the size of your down payment will determine what you qualify for. Home buyers with less than a 20% down payment don’t qualify for a conventional mortgage and can apply for a high ratio mortgage. In combination with mortgage default insurance they may qualify with a smaller down payment. When you’re ready to buy, it’s advisable to secure pre approval.
Step 3
Choosing the right realtor who listens to you and shows you homes that fit your criteria will make a big difference. A good realtor acts as an advisor and consultant and will work to negotiate the best deal for you.
Step 4
Part of your team will include a lawyer who specializes in real estate, and you may want them to look over any offers to purchase for you. They will handle the legal details of your purchase, title search, and other things too.
Step 5
Now you’re ready to start house hunting and creating a wishlist for your new home. Creating a checklist to take with you is very useful. Consider what your priorities are, both the immediate ones and future needs as well (for example, are children in your future plans).
My next blog post will cover 5 more steps in the home buying process.
