Don’t forget closing costs when buying a home Legal fees: In Ontario you are going to need to hire a lawyer to complete the sale of your home. Talk to your lawyer, or potential lawyers for their fees. Also make sure you are clear on what their fee will be, and also what other charges…Details
At some point, most people make the decision to buy a home. It could be to get out of your parents home, to stop paying rent, build for your future or a number of other reasons. Whatever the reason, it’s a big step. Making the decision to become a home owner is an easy decision for some, and a stressful time for others. However it ends up working for you, know you aren’t alone in the process, and there are professionals available to get you started.
How much can you afford?
The first thing you need to determine is how much house can you realistically afford? It’s a good idea to talk to a REALTOR® for help in this area. They can give you some basic advice, and a starting point. After that, they can refer you to a mortgage specialist if you don’t have one, that can get you pre-approved so there are no surprises. A lot of buyers attempt to go out and start viewing properties before they sit down with a mortgage broker, or a mortgage specialist with a bank. That step should not be passed over.
Getting pre-approved is a giant step in the process to buy a home. It essentially makes you a cash buyer. If you were to get into a situation of competing with another potential buyer on the same home, it would allow you to remove the condition of financing making your offer more attractive to the seller, if you are comfortable doing that. Also, you may have some minor blemish on your credit bureau that can be cleaned up to get you a better interest rate, or approval for a larger mortgage. There are plenty of mortgage people you can speak with, a few great ones in London Ontario are Carina DeMedeiros at BMO, Joe Battaglia with Mortgage Intelligence and Jeff Krieger at OMAC.
It really is a big step to know what you are approved for in the search process as well. It is never a fun experience when you think you can afford to buy a $300,000 house, and your pre-approval comes in at $250,000. We will be able to find great homes in both price points, although $50,000 does change a lot of things in houses. It’s that difference in neighbourhood, adding a second car to the garage, a 4th bedroom, an ensuite bathroom, etc.
If you need some help getting started in the process to buy a home, or have more research to do and would like to ask us some questions, contact The Price Real Estate Team at 519.633.9411.