The First Step
The first step in a home-buying process is to define why you want to purchase a new home. It could be have a place of your own, or to raise a family. or perhaps it is to move up to a bigger home, or down to a smaller one. At this point you might also want to think about the style of home you prefer and the area in which you'd like to live.
Develop a needs versus wants list
This list should include all the features you not only need, but also those you would like to have. However, when it comes time to buy a home, remember that these desired features may potentially constitute additional costs. While it's nice to think about having a beautifully view, or a gourmet kitchen, these may be considered luxury items, which might add considerably to the price of your property. Begin the list with items you absolutely need, like adequate room, garage space and number of bedrooms. How much space do you really need? Does your situation require a one-level home, or are stairs acceptable? After basic needs have been established, you can consider additional features. With such a list in your hands, you'll have a good idea of what you want, the features necessary within your price range, and an additional list of desired items.
Once you know what you are looking for, consider the various neighbourhoods that might be appealing. Check out each of the neighbourhoods you're considering, and ask around. What amenities does the area have to offer? Are there schools, churches, parks, or grocery stores within reach? Consider visiting schools in the area if you have children. How will you be affected by a different commute to work? Are there infrastructure projects in development? All of these factors will influence the way you experience your new home, so ensure you're well-acquainted with the surrounding area before purchasing. To learn more about various North Shore neighbourhoods, please visit my Links section!
The Next Step: Loan Pre-Approval
Once you've narrowed down your list, you may want to work with a mortgage Broker or bank to get pre-approved for a mortgage. While getting pre-approved may sound complex, it actually just involves getting an idea of what you can afford. When you're pre-approved, a lender has reviewed your credit history, verified your assets and employment, and has approved your loan before you've found a home to purchase. Pre-approval gives you substantial leverage: sellers immediately see you as a serious buyer. Not only will you know the exact price range you can afford, but you'll also be able to negotiate a better deal and move more quickly when you see a house you like. Depending upon market conditions, a seller may lean towards an unconditional offer, so you'll have less negotiating power if you have to wait for mortgage approval. Banks and financial institutions have developed many programs catered specifically to home buyers. Once you review your needs and objectives with a lending officer, you'll be one step closer to purchasing your home.
Contact me and I'll be happy to refer you to several mortgage professionals with excellent reputations and track records for successfully acquiring loan approval for his/her clients.