Buying a home is a huge ordeal. You have to find the home that you are interested in, then find the funding that is going to cover the cost of the home. And there are several factors that go into getting you the funding that is going to cover the home. How can you ensure that you have financial success when buying a home? There are several tips that can ensure you do have financial success. For those who are considering buying a home, it is worth looking into how these tips could help your situation.

Financial Tip 1: Be Careful What You Spend Your Money On

Around three to six months before buying a home, be sure that you are not making a major purchase or taking chances with your money. If you decide to take a risk with your money during this time frame, you may find that the lender views you as a financial risk. Some things that can red flag you include opening up new lines of credit, buying large items like cars and the like, and even getting a loan for personal use can throw you out of the running for getting a home loan.

Financial Tip 2: Get a Home Loan that is Pre-Approved

Why should you aim for pre-approval? This is going to help you in the process of buying a home. A pre-approval means that the lender has looked at your individual case, and they know how much they are going to give you for a home. This can be a great bargaining chip when finding a home that you love and there are other competing offers on the home.

Financial Tip 3: Avoid Timing the Market

Don’t obsess over when is the best time to buy on the market. Timing the market can mean missing out on the best house for your funds and your personal preferences. Those who try to time the market often end up on missing out on the time to buy the home of their dreams and regret this decision for several years to come.

Financial Tip 4: Bigger Doesn’t Mean Better

When you walk into a neighbourhood with the intent of looking for a home to buy, you may see the biggest home on the block and think that this is the best option for you. However, bigger is not always better. Remember, from a financial standpoint, when you buy the biggest house in the area, you are not going to make more money back later. Your home is valued at the same as those that are around you, regardless of the fact that your home may be double the size.

Financial Tip 5: Remember the Hidden Costs

Remember that when you are buying a home, there are other fees that are included with your mortgage in most cases. Many people are surprised to find that they underestimated just how much their monthly payments would be since they did not think about including property taxes, insurance and other fees that they may not have paid when they were renting a home.

Financial Tip 6: Emotions and Finances Don’t Go Hand in Hand

When you are buying a home, this does mean that you need to let emotions rule your decisions. In fact, it is better to look at this from a financial standpoint rather than emotional. From a financial standpoint, you want to go with the best home that fits your budget and gives you the most bang for your buck. You do not want to focus on the backyard aesthetics.

Financial Tip 6: Be Sure to Get the Home Inspected

You are going to be spending a lot of money on this home, so be sure that you are getting a home inspection on the house. You want to ensure that you are getting the most bang for your buck, but also that you are not buying a home that is going to be a financial blunder later. In fact, most lenders are going to want to have a home inspection done before they lend the money.

Financial Tip 7: Check out the Neighbourhood

Before purchasing a home, be sure that you are checking out the neighbourhood. You want to ensure that the home you buy is in an area that is going to have a good resale value later. If the neighbourhood is questionable, chances are the home is not going to sale later, for even what you paid for it. Plus, this can give you just one more reason why this house may be the best option for you!

Financial Tip 8: Get Ready to Bid

If you find a home that you love, that is in a great neighbourhood, that is also in your price range, be prepared for a bidding war. However, be smart about this. Check out what other homes have gone for in the area and base your offer on this information. Do not allow emotions to get the best of you and offer more than what the home is worth.

Financial Tip 9: Prepare for a Down Payment

Remember, in Canada you have to have a 5% down payment on any home that you buy. However, the more that you can save, the better you are going to be! The more down payment you pay, the lower your monthly mortgage rate.

Financial Tip 10: Remember Fixes in a Home May Mean More Money

When you are buying a home, you may have big dreams of what you want this home to look like. However, this may not be something that you can do until you have been living here for a while, as renovation projects take money to fund!

Remember, when buying a home, be sure that you are working with a real estate agent you can not only have help with finding the right home to buy, but they can also be full of financial tips that can help home buyers. Contact us today and we’ll help make your next real estate transaction a successful one!