Shopping before getting pre-approved can be an exciting prospect, but it's crucial to prioritize obtaining pre-approval before diving into the home search process. By doing so, you position yourself better for negotiations and gain a clear understanding of your financial capabilities.
Before embarking on your home-buying journey, it's essential to know your price range. This is where a knowledgeable mortgage professional plays a crucial role. A mortgage broker will assess your buying power, providing insight into what you can borrow from the bank.
Keep in mind that when purchasing a home, you typically have a limited time frame, often up to two weeks, to address any financing concerns with the bank. Therefore, having your pre-approval in hand from the outset of your search is paramount. This ensures that you can confidently explore properties within your financial parameters and streamline the buying process.
Creating a precise list of needs and wants is essential for making informed decisions in the home-buying process. Your needs are fundamental, driven by your lifestyle, while your wants are additional features that enhance your living experience. Needs are non-negotiable, while wants are optional.
1. Needs:
- Number of Bedrooms: Essential for accommodating family members or specific living arrangements.
- Square Footage: Sufficient space for comfortable living and functionality.
- Location: Proximity to work, schools, amenities, and desired neighbourhood.
- Budget: Financial parameters within which the purchase must fall.
- Safety: A secure environment for you and your family.
2. Wants:
- Additional Amenities: Features like a swimming pool, backyard patio, or gourmet kitchen.
- Aesthetic Preferences: Architectural style, landscaping, and interior design elements.
- Bonus Rooms: Additional spaces like a home office, media room, or gym.
- Upgrades: High-end finishes, energy-efficient appliances, or smart home technology.
- Outdoor Space: Yard size, landscaping features, and outdoor entertaining areas.
Maintaining a clear distinction between needs and wants prevents getting swayed by superficial features. It ensures that your home purchase aligns with your practical requirements and long-term goals, rather than being solely driven by fleeting desires.
Choosing to work with a professional Realtor® is a wise decision when it comes to purchasing a home. In British Columbia, where sellers typically cover the commission, it's a no-brainer!
Here's why having a Realtor® on your side is beneficial:
- Gain valuable insights into the true market value of properties you're interested in.
- Rest assured knowing your interests are protected with expertly drafted contracts.
- Let your Realtor® skillfully negotiate on your behalf, ensuring you get the best possible deal.
- Enjoy peace of mind knowing that your Realtor® will thoroughly check the property's title and any associated charges.
- Access a network of trusted professionals, including inspectors, mortgage brokers, and legal experts, recommended by your Realtor®.
And remember, when it comes to "for sale by owner" properties, having a Realtor® by your side is essential. They'll help navigate negotiations, ensuring you don't end up overpaying due to emotional factors. With a Realtor® on your team, you're set up for success in finding your dream home!
When purchasing a home, it's crucial to be aware of all associated expenses. Your Realtor® and mortgage broker are invaluable resources to help you navigate these costs. Here are a few to keep in mind:
- Property Transfer Tax: Calculated as 1% on the first $200,000 and 2% of the remaining purchase price.
- Possible GST: Especially applicable to new construction properties.
- Legal Fees: Costs associated with legal processes, including document preparation and registration.
- Surveys or Title Insurance: Ensures clarity and protection regarding property boundaries and ownership rights.
- Strata Fees: Relevant for condominiums, townhouses, or properties within strata complexes.
- Property Insurance & Mortgage Insurance Premiums: Essential for protecting your investment and fulfilling mortgage requirements.
By understanding and preparing for these costs upfront, you can navigate the home buying process with confidence and avoid any surprises along the way.
