Every person living in Canada or United States moves to a new home every 7-8 years. Buying a house is one of the largest assets that many of us will own. Financial Investment accompanies another type of Investment – Emotional Investment, therefore it requires a cautious approach. I am going to share few of the tips for buying a house with you in this article. This list is certainly not exhaustive and everyone needs to do their own due diligence for this process. Below are few of the important house buying tips that should be considered while approaching the real estate market.
Start by checking your credit.
When buying Real Estate, concentrating on down payments is just the tip of the Iceberg, there are many other financial nooks and corners that need must be explored before committing to a real estate transaction. So if you want to buy a new home for yourself then you may need to get a Mortgage. Your credit history is taken into consideration for the mortgage process. The Credit score and many other factors determine your eligibility for mortgage approval.
Keep in mind what you can afford.
Buying a house involves lot more than arranging a mortgage. Although Mortgage pre-approval process does give you an idea about how much you can afford, however there are many additional costs related to buying a house. These costs are outside of the purchase price of the property. Rule of thumb is that closing expenses could cost up to 2.5% of the total house price. Once you move in there are many other expenses such as Property tax, Hydro, Gas, Water, Home Insurance etc that you will incur.
Location does matter.
Location, Location, Location. This is one of the most often used words in Real Estate. There are many factors involved in choosing a perfect location of the property and these factors may not be the same for everybody. Close proximity to a School might be a good location for a young family while someone else with grown up kids may rather like to have a house close to a Conservation area.
Need to have the required knowledge about the prices.
Although Real Estate agents can assist in the search of a perfect home, it is always very important to do your own due diligence. Real Estate search can sometimes be overwhelming but once you find a perfect home, it is a matter of great satisfaction and pride. For the past few years, there are many houses coming in the market which are for sale by owner. These types of properties are sometimes worth exploring as they provide an opportunity for more negotiations.
Bank owned homes for sale.
Due to the lukewarm economy, foreclosure homes have become a common site everywhere. These houses can sometimes be bought for much less than the market value as Banks are trying to retrieve their loan amount and are not always interested in profit.