The first question you're bound to ask is, "How much home can I
afford?" That depends on a number of factors:
-
Your selected location. Are you
set on a specific area? Downtown? The suburbs? A rural setting?
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Your preferred type of home.
Detached? Semi? Duplex? High-rise? Link? Townhouse? New or Resale?
There are a variety of home styles you will want to explore.
-
Your income. After all, it's not
just the mortgage you have to take into account. There are
property taxes, utilities, and in some cases condo or strata fees.
As a general rule of thumb, your monthly home-carrying cost should
not exceed 30-35% of your income.
-
Market conditions. Is it a
buyer's, sellers or balanced market?
There are
also additional costs to keep in mind. It's a good idea to work out
exactly what you want and what you can afford before you begin the
search. Be specific! After all, you don't want to suddenly come to
the realization that your dream house has come with a nightmare of
bills and expenses. Stick to looking at houses in your price range.
The more you've thought it out, the better your REALTOR® can meet
your needs.
A part of
deciding just what you can afford can be accomplished by meeting
with your bank or a mortgage broker and negotiating a pre-approved
mortgage. There are many types of mortgages and many different
terms. Research all of your options. This ensures that there are no
surprises once you're ready to make an offer.
Once you've
figured out your monthly expenses and what you can afford, you can
start your search. It could happen that the first home you see is
the one you want; or you might look at home after home with none of
them catching your interest. Rest assured, the home you're looking
for is out there, and when you find it, you're ready to make an
offer. If your offer is accepted, the next steps are closing and
moving into your new home.
As you can
see, you will want to give some thought to how long you intend to
stay in your home. It may be difficult to answer before you've even
found your home, but if it's your first home give some thought to
the resale value when it is time to upgrade. On the other hand, if
you're planning to stay in your home for a long time, consider your
future needs and purchase a home that will accommodate them.
Purchasing a home
is easy once you put your plans into action. Call Rob to help.
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