August 6, 2015
The prospect of buying a new home can be enthralling. That excitement, awesome as it is, can at times overshadow some of the preliminary checklist items that should be considered before moving to buy.
Instead of letting a first-time buyer or even someone looking to buy a new home unfamiliar with the process involved get bogged down at a bad time by things that should have been dealt with, we have decided to look at five must-do items to be taken care of before buying.
Healthy Savings Account. Ultimately, before even considering a home purchase in the first place, build a substantial savings account. Save, save, save! Be diligent. Be frugal. When building a sum on which to rest your fiscal future, it is imperative to be responsible with your money. While depending on income and other factors, a healthy savings account can look different to everyone, but make sure you are comfortable before buying.
Save For Down Payment. In line with your savings, there should be a fund set aside for the down payment of your future home. Of course, the minimum down payment on any home priced less than $1 million in Canada is 5%, with the average down payment ranging from the low (5%) to the very high (20%).
Make A Budget. Obviously many of the items in the checklist involve finances and, more particularly, how to make sure you are fiscally ready for a new home. Long before you sign mortgage papers, see how much you can afford, look at what will and will not work budget-wise for your family and make a budget that is realistic!
Get Pre-Approved. Essentially, one of the very first things you want to do before ever shopping for a home is get pre-approved for a mortgage. Without this part of the parcel intact there is really no sense in even getting the ball rolling on buying a home in the first place. Make sure you get pre-approved before starting to shop.
Start shopping! Clearly we gave away the fifth item in our list in the fourth bullet point. That is, again, start looking for a new home! The internet can of course can be an excellent means of shopping, but so too can driving around the neighbourhoods you are looking at, cold calling realtors and stomping the pavement on route to the new home of your dreams.