The process of finding a property that suits you in every way is not easy. In fact, it could be frustrating and very confusing. But it does not have to be.
Before You Search
The best way to ensure that your search is stress free and productive is to prepare yourself ahead of time. You may want to answer the following questions to better understand your current situation, needs and wants:
• How much time do you have to find a property?
• Do you need to sell your existing property, are you a first time buyer or are you looking for an investment?
• How much money do you or will you have available for a down payment?
• What is your realistic price range in which you’d make your purchase?
• What specific requirements do you have for the property you seek?
• What location/area do you prefer?
Once you clearly understand your financial situation and have an idea of the property you are looking for, it will be much easier to narrow down your search.
Your Down Payment
A minimum down payment is required because mortgage lenders will not advance the entire purchase price of a property.
It’s to your advantage to aim for a down payment of 20% or more, so you’ll qualify for a conventional mortgage and avoid paying mortgage insurance premiums. The larger your down payment, the easier it will be to arrange a mortgage and carry it comfortably.
Getting a Mortgage Pre-Approved
Pre-approval means that you, as a buyer have qualified in advance for a mortgage. Many lenders offer pre-approved mortgages with an interest rate guaranteed not to rise for a certain period of time.
Getting pre-approved is an ideal way to determine your mortgage limit and what you can realistically afford.
Additional Expenses
There are a number of additional expenses that may await you as a buyer such as:
• Lawyer’s Fees and Disbursements
• Mortgage Broker’s Fee
• Appraisal Fee
• Mortgage Insurance
• Land Transfer Tax
Once you are clear on what awaits you in terms of payments and financial obligations, you will then be ready to begin your search.
Rest assured, what you are looking for is out there and when we find it, we will be properly prepared to make an offer.
Call me to schedule your free, no obligation Buyer consultation.
