3 Considerations You Must Make Before Buying a Home
Entering into the housing market can be a little intimidating, especially if you’ve never done it before! Many homebuyers aren’t sure where to begin… or even when to know they’re ready to begin. Most daunting can be the financial aspect of buying a home. There are so many terms, financial products, and steps involved! I’ve waded through the noise to bring you the three most important things you can do to financially prepare for owning a home.
Know Your Financial Capabilities
Do you know how fiscally fit you are? If you applied for a mortgage, would you be approved? It’s time to get your finances in shape, if they aren’t already. Depending on your situation, this could range from paying off your credit card to saving a greater portion of your paycheck. If you’re not sure what you need to do to get ready to buy a house, give me a ring. I’ve spent my career working with professionals in the mortgage and financial industries– we’ll get you ready for the best purchase you’ll ever make!
Set Your Budget
Take the time to really figure out your budget. Be realistic both with how much you can dedicate to paying for a mortgage, and how much house you actually need. Stretching beyond your means is not only uncomfortable and can cause unnecessary strain on your relationships– in severe cases, it can cause financial ruin. Don’t set yourself up for failure– create and then stick to your budget.
Have Your Savings Ready
Do you have money set aside for a down payment on your new home? What about for the closing costs? What about any upkeep or maintenance that you may want to complete? The minimum down payment on a house in Canada is 5% and closing costs vary based on the province. In addition, the amount of money you are able to dedicate to your down payment will have ripple effects on your insurance rates and throughout other aspects of your finances. If you have little or no savings, work first on creating a nest egg that is dedicated to your new home. This may take some time, but it will be completely worth it in the long run.
If you’re ready to begin the search for your house, don’t hesitate to contact me. I’m ready to help navigate you through the process and ensure that you find the perfect home for you and your family!