1. PRE-APPROVAL, PRE-APPROVAL, PRE-APPROVAL

• Before you go house shopping, it is very important to know what you can afford! There is no point falling in love with a $600,000 house if you can only afford a $400,000 home. There are many mortgage payment calculators out there that will calculate your monthly payment, but it is important to speak to a professional.
• Mortgage professionals will hold a rate for you for up to 90 days, so if interest rates go up before you buy, as long as you buy within the 90 day period, they will honour the guaranteed rate.
• Another benefit of getting pre-approved is finding out if there are any issues with your credit that you may not even be aware of. There is nothing worse than a nasty surprise after you have already fallen in love with your dream home!
• When the time comes to actually make an offer, your mortgage professional already has most of the information needed to complete the mortgage application, which makes the due diligence period much easier.

If you are thinking about buying a home and need to get pre-approved, I would be happy to recommend a few Mortgage Professionals that can get you started.

2. Decide on Style of Home

• Price point may dictate what type of property you are able to buy (single family, duplex, townhouse, apartment condo, etc), however, it is important to think about what type of home suits you.
• If you are a young, first time buyer with no kids, you likely are not going to be looking for a 2200 square foot two-storey with a fully finished basement and 5 bedrooms.
• Likewise, if you have three young kids, you probably are not looking for an executive bungalow with only one bedroom on the main floor.
• Know what style of home works best for you. This may mean going out and looking at a few different types of homes to find what type of homes work for your own personal situation.

3. Pick Your Ideal Areas

• Try to narrow down the areas that you are interested in. If you need to be within a certain proximity to your work, or to a specific school, etc, then keep that in mind when choosing the areas you are interested in.
• Keep price point in mind. Again, if you are approved up to $400,000, there is no point setting your heart on buying a home in an area where the average price is $600,000.

4. Make a List of Needs

• It is important to know what your absolute needs are in a home. If you work from home, maybe having a main floor den/office space is a must. Maybe you run a day home and need a separate space for that.
• Keep in mind, these are your deal breakers. The things you absolutely must have in a home to even consider purchasing it.

5. Make a List of Wants

• Make a separate list of things you would really like to have in your next home, but are not necessarily deal breaker.
• These items could include things like hardwood floors, granite countertops, double garage (when you only NEED a single), etc. These are items that would be great to have but you may not be willing to sacrifice items on your NEEDS list to get.

6. Avoid Making Any Large Purchases

• When you are ready to buy a house, avoid adding any new depts. Don’t go out and buy a new car or rack up a bunch of charges on your credit cards.
• Keep your credit as clean as possible. While this is just good advice in general, missing a couple of payments or adding debt can negatively affect your ability to qualify for a mortgage.

7. Work with a Professional

• Buying a house is a big decision. It makes sense to work with someone you can trust to have your best interests in mind.
• It is important to have someone on your side who can help guide you through the home buying process, and help deal with any issues that may arise.
• You also want someone who knows the market and can help educate you on proper pricing and how to negotiate the best price and terms possible.

Once you have worked through these steps, it’s time to start searching for a home! You can search for homes in your desired areas right here!