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So You Wanna Buy a Home? Five Must-do's for Every Home Buyer
HOW-TO Author: Steve Dyment
It happens every year. As the snow begins to fade and spring approaches, people start to think about home buying. But since the end of winter is still a few weeks away and preparation is key, here are a few tips that could help you with one of life’s biggest purchases.
1. Find out your credit score and improve it if necessary
Don’t wait until you a writing an offer on your dream house. Instead, request your credit report as soon as you can, up to 6 months in advance. That way you’ll have to time to take steps to repair your credit if needed.
2. Determine how much house you can afford
After every bull market in real estate, people are often left confused on how to view the market. Could my home double by next year? Will it be worth half? While there is no guarantee, it’s good to keep two things in mind:
1) Real estate will always be a good long term investment, particularly if you are planning to live there.
2) It’s better to buy too little house than too much.
Foreclosures and bankruptcies are very real and nobody wants to be ‘mortgage poor’. Instead, buy a home that is comfortably within your budget. You can always scale up later when you have increased your equity or earnings.
3. Bolster you savings
Whether it’s for home ownership or something else, this is never a bad idea. It’s not just the minimum 5% down payment that you want to have available to you. Most lenders like to see around 1.5% in additional funds available for closing costs. Also, having a financial nest egg set aside for unexpected repairs, costs or even improvements down the road is always a wise plan.
4. Visit a mortgage broker and get pre-approved
Getting pre-approved not only gives you confidence and assurance that you are able to obtain financing, it can strengthen your offer in the eyes of the seller. Most mortgage pre-approvals last for 90-120 days so consider getting yours when you are ready to buy.
5. Be choosy. Buy the right home
Imagine you go out to eat at fancy restaurant you’ve never been to. Do you open the menu and order the first item you see? Or choose the cheapest item because it must be the best value?
If you are like most of us, you’ll take some time to view your options. You might ask the server whose helping you for some guidance and recommendations. Finally, you’ll make your selection after you had time to consider. And this is only a $35 meal!
When it comes to buying a home, make sure to do the same but to a greater extent. Take your time and ask questions. Get information and seek out professionals whom you trust that can provide you with the knowledge you need to make the best choice.
Well, there you have it: five tips to help you with buying a home the right way. If you are in the market to purchase new home, I encourage you to practice these ideas to help you get the right home without the headaches If you have any questions about this article or are interested in more home buying information, feel free to contact me.
Contact Information | Creative Mortgage Corp. |
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| Name: |
Steve Dyment
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| Company: | Creative Mortgage Corp. |
| City: | Kelowna |
| Province: | British Columbia |
| Country: | Canada |
| Phone: | (250) 470 9154 |
| Email: | |
| Website: | http://www.creativemortgage.ca |
