Preparing to Buy
Buying a home or an investment property can be exciting but it can also be a challenge, especially for first time home buyers or buyers who are unfamiliar with the real estate market, mortgages, or the process of buying a home. Here are some questions homebuyers will want to consider before buying a home:
1) What are your housing needs? What type of home do I want to buy?
Depending on the size of your family, whether a single family home, a townhouse or a condo is the type of home you need will be different for each family. On top of that, the amount of money you have for a downpayment may determine whether you buy a townhouse or a single family home.
2) What neighbourhood do I want to live in?
Each homebuyer will look at neighbourhoods very differently depending on their current needs and their lifestyle. For someone who is single, you may want easy access to entertainment, restaurants and other amenities that are all within walking distance. For growing families, you may want a family friendly neighbourhood with easy access to parks and playgrounds. Your realtor can provide you with advice on the best neighbourhood based on your needs. Check out some North Vancouver neighbourhoods.
3) How much downpayment do I need?
The amount of downpayment you need for a house will be different compared to a townhouse because the downpayment is based on the purchase price of the home. Other factors that affect the downpayment is the type of mortgage you have negotiated with your bank, your mortgage broker, or mortgage insurer.
4) Where can I get a mortgage? What are the different types of mortgages available?
Mortgages are available from both banks and mortgage brokers. Educate yourself on the different types of mortgages available so that you can choose a mortgage that works with your budget and the current market conditions such as the current interest rate.
Your realtor will be able to recommend mortgage brokers who can help you with securing a mortgage for your home. You may also want to consider prequalifying for a mortgage to speed up the process of purchasing your home.
Use our mortgage payment calculator to see how much money you will need to pay for your mortgage.
5) How much money do I need to budget for a new home?
On top of the downpayment and regular mortgage payments, there are other things that you will want to budget for. If you live in a townhouse or condo, you will need to budget for strata fees. Other items to budget for include insurance, utilities, and property taxes. You may want to budget for renovations, especially for older houses. There are also expenses associated with buying and selling a property, such as the property transfer tax and legal fees. All of these expenses can impact how much money you have each month to pay your mortgage.
6) Do I buy or sell my property first?
If you are already living in a home and are looking for a new home, you may wonder whether you should buy a new home first or sell your current home first. Based on the market trends and your realtor’s previous experience, they can provide advice to you about which scenario would best suit your financial situation.
7) Which realtor is best for me?
When buying a home, a professional realtor with experience will be able to help you navigate the tricky world of real estate contracts and the real estate market. They can help you better understand the financial impact of buying a home and what other costs you may have to consider. Read more about the benefits of hiring a realtor.
The best realtor for you will work hard for you, understand your needs and help you find your dream home. They will be someone you can trust and that you can rely on to negotiate the best deal for you.
Find out how Erin and Scott can help you find your dream home. Call now.