Are you in the market for a new home? Congratulations! Here are a few dos and don’ts to help make your experience a good one:
Do get preapproved for a loan. This will give you an idea of what you can afford so that you won’t waste a lot of time looking at homes that are out of your budget. Additionally, it is important because many real estate agents won’t work with a client until they have been preapproved for a loan.
Don’t make a large purchase on credit before your closing date. Even if you have been preapproved for a loan, the lender can still change their mind if your financial situation changes. Major purchases such as a new vehicle can jeopardize your mortgage application.
Do research the neighbourhood. Even if you have found a home that you love, you need to make sure that it is in the right neighbourhood for you and your family. Decide what you want and then choose a home in a neighbourhood that meets your needs.
Don’t make your purchase decision based on its décor. A home can look great if it is furnished and especially if it has been professionally staged. But you need to make sure that the home is going to be appropriate for your furnishings and your lifestyle.
Do look at several homes before making your decision. Especially if this is your first home, it can be hard to know what is available at your price point. Be sure to look at several different homes so that you can have a realistic expectation.
Don’t believe everything you read in the real estate listing. Real estate ads are meant to pique your interest so it is important to learn how to read between the lines. For example, the words “cozy” and “cute” are usually code for very small. Look at each property with a critical eye and be sure to ask any questions that you may have.
Do get a professional home inspection. If there are issues with a home, they are not always visible to the untrained eye. Investing in a professional inspection before you close on a home could save you thousands in repairs later on.
Don’t overlook hidden costs. Remember that your mortgage isn’t the only cost of buying and owning a home. When you are setting your budget remember to take into account property taxes, maintenance, insurance, etc.
If you would like more help in learning about the dos and don’ts of home buying – or if you are ready to get preapproved for a mortgage, contact Akal Mortgages today.
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