Rob Smashnuk

Keep your cash in your wallet

Before taking on a huge commitment like a new mortgage, it is best to refrain from making large purchases. Lenders are more likely to give you a better contract for your property if they can see you are a responsible borrower. If you open new credit accounts, max out your cards, or buy several big-ticket items it could be difficult to secure a loan.

Get pre-approval not just pre-qualified

There is a big difference between the two. Anyone can get pre-qualified, but getting pre-approved means a lender has looked at your credit history and financial information and determined exactly how much they should lend you. It can make house hunting more efficient getting pre-approved so you do not waste time looking at houses you cannot afford. It also gives you the opportunity to get the best interest rate on your loan and to make sure there are no hidden fees. You will likely have this loan for decades so it is imperative to make sure you get the best deal possible.

Get your new home surveyed

Doing so will prevent future disputes with your neighbours and it is always a good idea to know exactly what you are buying. Your property tax is based partly on how much property you own so it is ideal to have an accurate map drawn up.

Predicting the market

Housing prices have been steadily increasing making it only natural to try and time buying for when they go down. This can be an impossible task though as markets are unpredictable and housing appears to be on an indefinite upward trend. The best time to buy is when you find the perfect home and can afford it. Do not try to wait it out or you may miss out.

Bigger ≠ Better

For those not in the real estate business, there is an old adage that says not to buy the biggest, most beautiful house on the street. Even though it catches everyone eye, only a few people can afford it. This limits the number of potential buyers should you want to re-sell it. Your home is only going to go up in value in proportion to the houses around it. Sometimes, it can pay off to buy the worst house on the street because it will trade up better per square foot than the biggest house.

Sleeper Costs

The biggest difference you will notice between renting and owning are these costs. Most home buyers focus on the monthly mortgage payment, forgetting about property tax, utilities, repairs, and maintenance costs. Make sure to budget for all the expenses that come with home ownership.

Emotional Attachment

Some homes take our breath away so well that we overlook issues that good come up down the line. Maybe the place was your childhood home, or perhaps it is in an amazing neighbourhood. At the end of the day, buying a home is an investment so try to make this decision practically by avoiding emotional bias.

Check Under the Roof

Just as you would check under the hood of a car before buying it, you should also get your potential new home inspected by a professional. It would cost you a couple hundred dollars, but will save you thousands in the long run. It is the best way to get an unbiased opinion and, if they do find problems, you can use it to bargain for a lower price.

Bidding

Most people think that starting with a low owning bid is the best tactic to use when bargaining for a home. The best approach is to see what other homes are going for in the neighbourhood and be aware of how the markets are doing. Your opening bid should be based on two things: what you can afford and what you really believe the property is worth. Also, try avoiding rounded off numbers – sellers are more likely to take a specific number more seriously because they will assume you put a lot of thought into it.

Research the Neighbourhood

Drive by the house at all times of the day to get a thorough understanding of the area. Many people have bought homes only to realize the community was not for them. Take trips from the new place to your work to see if the commute is manageable and keep an eye out for amenities like grocery stores and gyms. Even if you do not have kids it can be beneficial to make sure the schools in the area are ranked well as this can affect the price of the property.

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