Shopping Tips for the New Home Buyer

So you’ve decided to take the plunge and enter the real estate market in search of that dream home. Sounds simple enough and in fact with the right approach and degree of care it can be an enjoyable and rewarding experience.

Some tips:

1. Decide what type of home fits your lifestyle. What’s important to you in a home? Make a checklist and rate the items 1 – 10
2. Choose your neighbourhood. When you find a neighbourhood you like check out the amenities, schools, hospitals, shopping etc.
3. Use all available sources of information. For example, CMHC not only provides mortgage loan insurance but it is also a wealth of information for research into housing. Also check your local builder’s association.
4. Know your credit history. Your credit history will be the key to how much money you can get and how good your mortgage terms may be.
5. Know how much you can afford. How much down payment do you have and what type of mortgage payment can you carry? Household expenses, including mortgage payments should not exceed 32% of your gross income. See Acme Financial  for some basic calculations.
6. Get pre-approved. Being pre-approved means you have actually been approved for the purchase. This gives you and your Realtor confidence when it comes to viewing homes and making an offer.
7. Assemble your team.  With items 1 – 6 covered you’ll need some knowledgeable professionals in your corner. Look for a realtor, mortgage broker or banker, and a lawyer. Each of these will provide indispensable advice uniquely tailored to your situation.
8. Home Inspection. See my blog of January 25th. A home inspector will provide a comprehensive inspection of the house and provide a written report on his findings.
9. Know your closing costs.  On top of the cost of the home there are other fees, charges, taxes such as legal fees, land survey, title insurance etc. Your Realtor can provide you with a comprehensive list.
10. Relax and enjoy the process.  Be prepared, take your time, do your research and make the best possible informed decision. Use all your resources and let your realtor guide you along the way. Try not to get overwhelmed.

Sources: CMHC; Canadian Real Estate Magazine, REM

Happy hunting!

Gary Johnston

Real Estate Consultant

Hanlon Realty

(709) 691-9853

gary@hanlonrealty.ca