How To Buy Right

So, you’ve decided it’s time for a change and you want to buy a new home or make an investment.

There are many considerations outside the financial side of things.  Getting a pre-approval for a mortgage is always a great first step. You will want to know how much you can afford before you go shopping.  Also, engaging an expert real estate agent will help you move in the right direction.

Here are some considerations before buying:

• Is it the right time to buy?

  Traditionally, spring is the start of the homebuying season, with many listings hitting the market and activity peaking over late spring/early summer. However, your own financial readiness is more important than the time of year.

  The answer likely depends on your own personal circumstances more than the condition of the housing market. If you’re financially stable, you have enough in savings to cover the down payment and other expenses, your employment and income are secure, and you’re ready to stay in one place for a while, then now is a perfectly fine time to buy a house. You can always refinance if rates drop significantly. On the other hand, if your savings are tight or your credit score is less than stellar, it might make more sense to take time to build those before buying.

  One thing to keep in mind: Be sure to exercise caution anytime there’s a spike in home prices. Be careful about buying near the top of the market, especially if you want to be in the home for only a few years.

• What’s your local market like?

  The area you’re house-hunting in has a major impact on what to brace for as a homebuyer. Each market has its own quirks to consider. And even within the same city, real estate is very localized — you might be surprised by how drastically market conditions can vary from one neighbourhood to the next. This is why partnering with a knowledgeable local agent who understands the intricacies of their market is so important.

• How prepared are you for extra costs?

  The down payment is often considered the biggest homebuying expense, since it’s a large amount that the buyer has to actually pay upfront. But homeownership involves plenty of additional costs that you should be ready for. Before you even close on the purchase, you’ll need to make sure you have enough money set aside to cover closing costs. These fees will vary by the state of each individual transaction, but they will almost certainly range into the thousands of dollars.

  When budgeting for your monthly housing costs, factor in not only the principal and interest amounts of your mortgage payment, but also property taxes, home insurance premiums and homeowners association fees (if applicable), plus mortgage insurance if you’re putting down less than 20 percent. And don’t forget to set aside money for ongoing maintenance and unexpected repairs, too.

For more information on selling your home, contact us.