Three Key Steps For Buyers
Three Very Important Steps
How's this for importance—biggest $ purchase in your life, major role in your quality of life, big impact on your financial future, key factor in the family's well-being.
Choosing the right home is way too important to treat as another shopping trip. If you're thinking, "I'll know it when I see it", you risk looking in the wrong places or overlooking something important.
1. Know what you can afford.
- If you're selling a home, work out what you net cash will be after all costs: recommended repairs, sales fees, mortgage balance, legal fees and adjustments. Don't forget GST.
- Add up your maximum downpayment. This is the total cash you can come up with (including sale proceeds from A.), minus closing costs when you buy, moving expenses, purchases for the new home, and cash reserves for ongoing expenses and emergencies.
- Find out the maximum mortgage loan you will qualify for-direct from the lender. Go to your bank or a mortgage broker and get a pre-approval. Then you know for sure and you can buy with confidence.
- What you can afford = Downpayment + Mortgage
2. Decide what's important
- Style: 2-storey, bungalow, townhouse, or condo apartment?
- # of bedrooms and # of bathrooms: at least how many?
- Family room/Den: how important?
- Garage, need a double or will a single do?
- Central air: must have or nice to have?
- Fitness Centre, Pool (condo): will you use it?
- Elementary school: walking distance important or will you drive?
- High school: walking distance important or is one bus okay?
- Distance to TTC/public transit: if you need it, how many minutes will you walk or drive?
- Driving to work: what is your limit in driving time?
- Other requirements?
3. Hire the right realtor
Most properties for sale are listed on MLS and sold through a listing broker and a buyer broker. In most cases, the services of a real estate sales representative will cost you nothing. With a realtor you feel comfortable with and confident in, you will find the search process more satisfying and the buying process worry-free. Please see BUYING A HOME for guidance.