Buyers Article
For most people, buying a home is the most significant investment of their lives. Today’s market still presents many promising real estate opportunities for homebuyers. Housing inventory is strong in many urban centers such as Ottawa leading to a more balanced market. Historical data demonstrates that purchasing a home has proven a sound long-term financial investment. However, homebuyers – especially first-time buyers – are often understandably anxious when it comes time to making what could be the largest purchase of their life. Here are some simple “do” and “don’t” lists to make the process easier for everyone dreaming of homeownership.
The Homebuyer ‘DO’ List:
- Access and closely review your credit score. A sound financial track record and solid credit score can help lock in a loan and lower interest rates. Check your records in advance to catch any errors ahead to time, and to better understand how lenders may perceive you.
- Explore mortgage pre-approval. Getting this early green light will help show those involved with your purchase that you are serious about home ownership – and well-qualified, financially.
- Line up your “all-star” team of professionals before game day. A team of experienced professionals will be your key to making the home buying process simple and seamless. I can help you identify suitable lawyers, mortgage lenders, home inspectors, insurance agents, property surveyors and others who play a role in the process.
- Anticipate your future needs and buy for lifestyle. Try to anticipate how long you’ll live in your next home and plan for major lifestyle changes when possible. For example, what may make a perfect starter home for a couple might not work in a few years, when children come into the picture.
- Hone in on your housing priorities. Your ideal home may have a front porch, an in-ground pool and four full bathrooms. But before you start looking, make sure to separate your “must-haves” from your “nice to haves”, so you know where you can compromise to meet your budget.
The Homebuyer ‘DON’T’ List
- Fall in love with the first house or neighbourhood you see. That home with views over the wooded forest to the rear may win your heart at first glance, but you need to keep an open mind to make sure you find the fit for all of your needs. At the end of your search, it may turn out that the bungalow, that is a much closer commute to your workplace, is a better bet.
- Buy beyond what you can afford. It’s easy to fall into that all-you-can-eat attitude, especially when it comes to your first home purchase. You “want it all” when it comes to size, amenities, location, etc. But remember that your eyes may have a larger appetite than your wallet. Make sure the down payment, closing costs, monthly expenses and taxes are truly within your income and savings range before you sign an Offer.
- Treat your home the way you treat your stock portfolio. It’s unrealistic and unwise to expect your housing investment to appreciate quickly over the short-term. Buying for lifestyle reasons, and remembering that real estate is a great long-term investment, will help you look at home purchasing and ownership in the right context.
- Jump into a confusing mortgage. Be sure to read carefully through every aspect of the proposed mortgage loan to fully understand your end of the bargain. Since I am also a real estate lawyer, I can explain the contents of the Mortgage loan document. For instance, an attractive rate now may be difficult to carry if rates change during the term of your mortgage. Arm yourself with information and you don’t need to be afraid to ask me questions about it.
- Underestimate the value of a real estate professional. While being a savvy buyer and doing your homework will help on the road to homeownership, a local REALTOR® with specialized market knowledge and possibly years of negotiating experience will be invaluable when it comes to scouting out the perfect home – and closing the deal.
If you have any questions about the market or home buying process, please contact me.