Steps to Take Before Buying a Home

Steps to Take Before Buying a Home

Thinking about buying a home? You know what type of home you want but not quite sure where to start. Here are some tips to start you on the right path so when your dream home, you can make an offer!

Research Early

As soon as you start thinking about buying a home you might want to buy start browsing real estate websites and Hamilton neighborhoods. Make a note of homes you are interested in that fit your criteria as well as how long they stayed on the market. Think about if you prefer a house or a condo or maybe a townhouse that takes care of outdoor maintenance.

How Much House You Can Afford?

This is a very important step as you don’t want to take on more than you can afford. A general rule of thumb is to only look at homes that are three to five times your annual household income. This is with a 20% down payment and a reasonable amount of debt. For example, if your combined income is $100,000 than look at houses from $300,000-$500,000.

Get Prequalified for Your Mortgage

This step goes hand in hand with the step above. To purchase a home, you will need to know the amount the bank will lend you. To get prequalified, you need to provide financial information to your mortgage banker, like income, savings, investments and debt. This will be reviewed and then they will give you an amount that they will lend you. Having this information will help you make a responsible financial decision and will make buying a home quicker since you did this step ahead of time.

Find a Hamilton Real Estate Agent That Fits Your Needs

Finding the right Real Estate Agent in Hamilton can be the difference between finding an OK home and finding your dream home! The right Real Estate Agent will have information on the Hamilton neighborhoods you are looking at, current Hamilton market trends and be able to guide you to make sure you don’t overpay for a property. They have information that is not easily accessible to the public and their negotiating skills takes the stress off you! Best part is when using a Real Estate Agent to buy a house it doesn’t cost you anything. They’re compensated from the commission paid by the seller of the house.

Shop and Make an Offer

Once you find the Real Estate Agent for you, start shopping! You will see a lot of houses so make sure to take notes and rate properties based on what is the most important and least important to you. Try to look at the little details of the house. Is the tap leaking? Do the lights turn on? Rank the Hamilton neighborhood as well. Is the house on a main street? Is their schools and shopping centers near by? Are other homes nicely maintained?

Once you found the right property, work with your real estate agent to negotiate a fair offer. Your agent will take care of the paperwork and the back and forth with the other agent. Once both parties agree on the price and conditions, you have yourself a home!

The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are member’s of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.