Buying a home is a financial investment that can significantly increase in value over time. With low interest rates, it might be a good time for buyers, cautiously, to purchase a property. However, do your homework before jumping into this new experience.
In general, buying a home has always been a good investment.
Here are some tips that should know each new future owner of a property
- Determine what you can afford
It is obvious, the more you can put in a down payment, less need to borrow and the more you save in interest over the following years.
You must consider all parts before to understand what you can really afford.
The true cost of a home is much higher than the advertised price; it also includes closing costs, some utility connections....
Determine monthly expenses, including mortgage payments, insurance, utilities, maintenance, and property taxes.
2. Apply for a pre-approved mortgage
Being pre-approved for a mortgage has many benefits. To begin with, a lender will guarantee funding for a defined period of time (usually 90 to 120 days) with no obligation. You need to set your price range so that you can focus on homes that fit your budget. This will also allow you to make an immediate offer when you find the right home.
3. Set up your home-buying team
Before writing your signature on the dotted line, make sure you have the right team of experts, which should include a real estate agent who specializes in the region, a lender or mortgage broker, a notary (Quebec ), a home inspector, an insurance broker, appraiser and surveyor (certificate of location)
4. Choose a property that suits you
The house that suits you depends on a number of factors, including your current lifestyle and your future goals: If you are a single young professional, the type of property you are looking for could be very different from the appropriate property for a young couple expecting to have children soon, that takes into account certain criteria such as proximity to schools.