Here is a list of questions to consider when you're thinking of purchasing a house.
Some Questions To Consider When Buying A Home
Buying a home is likely the largest financial and lifestyle commitment you are likely to make during the course of your life. It pays to make an informed decision by looking at the advantages and disadvantages of homeownership. These questions should be addressed prior to making the decision to buy a home.
Are you financially ready?
Visit your local financial institution or mortgage broker so you can explore what you are financially capable of affording. Your financial institution will examine your credit history and they'll review your available down payment. They will look at your income and expenses and input all that information into a formula to determine what the maximum they will allow you to borrow.
How much will it really cost?
After you have calculated what is the maximum you can afford then you need to calculate the up-front costs and expenses associated with buying a home. I usually recommend three to four percent of the purchase price should be budgeted for closing expenses. Expenses such as land transfer tax, lawyer's fees, real estate fees, moving expenses as well as a portion of heating fuel, property taxes and possibly some other expenses can add up.
What should I buy?
Before you decide to search for a home you need to decide what type of home you are looking for. Is a basement or garage important? Does the style and aesthetics meet your tastes? Do you just want to move in or do you mind fixing it up? Take some time to decide what you need and want from your home, because it will likely be something you live with for a long time to come.
What professionals should you call on?
You'll need to use several professionals to help in your real estate transaction.
Select a lawyer. They are responsible for searching the property title and ensuring that there are no liens against the property. Your lawyer also will mediate the closing of the home. That means that they mediate between the bank and the seller's lawyer.
Select a financial institution or mortgage broker to assist in pre-approving a mortgage application and setting up financing conditions.
It's a good idea to use a Real Estate agent to assist in the home buying process. Agents tend to be familiar with the local market place and will be able to guide and advise you on the available properties and their history. Agents also have the education and expertise to assist with all of your buying and selling questions.
Select an insurance broker. Most financial institution requires proof of insurance to close a sale. I also recommend a couple of other professionals to my clients as well, such as a home inspector, or a builder and a surveyor.
If you have followed these steps and done your homework, you are now ready to go out and find the right house. You have selected the features that you need and want, the location you would like to be in. You have consulted the professionals you're going to deal with and are now ready to go out and actively start looking to enter the world of home ownership.
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