Buying a home can be both an exciting and confusing time. For those potential home buyers that are unfamiliar with the home buying process, they may make any number of mistakes along the way. And while some mistakes are opportunities to learn a lesson, others can land buyers in a legal nightmare. To avoid the major pitfalls that come with buying a home, keep the following key stages in mind before getting started.
Assessing Your Worth
Before contacting a real estate agent or picking out their favorite neighborhoods, buyers have to learn how much they can afford to spend on a home. It's not solely a matter of your credit history or yearly income, which is why home buyers should consult several lenders to get an accurate idea of what they can afford. Other factors may come into play as well. And while many home buyers may have heard the maxim of spending around 30% of their income on rent, these rules may not be hard and fast given home price inflation that's occurred in many parts of Canada.
Selecting a Neighborhood
Before a buyer decides on buying a home in any neighborhood, they should first answer the following questions:
Where do you see yourself in 10 years?
Whether it's changing a job or reaching for retirement, buyers need to pick a place that makes sense both now and in the future.
How stable is your job?
If the economy shifts again, as it has done in the past, a home buyer needs to consider whether or not they may have to move or be transferred. This can help people decide to pick a more central location to live near employment centers.
What is your daily lifestyle?
Home buyers need to know about the little things that could affect their lives. From noisy neighbors to nearby retail stores, home buyers should see beyond the fancy staging to how real life will really look once they've moved in.
Finding a Real Estate Agent
Real estate agents fill in the gaps of a home buyer's knowledge and take care of everything from paperwork to structuring the right offer for a home buyer. They can help find those 'hidden' properties within a buyer's favorite neighborhoods that may not be obvious to most home buyers. Real estate agents work on behalf of their clients, looking out for their best interests at every step of the way. They'll recommend trustworthy professionals (e.g., home inspectors, title companies, etc.) in the area so the home buyer can rest easy in the home buying process.
Going Through Escrow
Once buyers find a home, the purchase contract will list any contingencies they will need to be dealt with before the home is purchased. From the time a seller accepts an offer to the time the deed is officially transferred, buyers will be in escrow. This is the time period where buyers will finalize the terms of their mortgage, pay for closing costs, and, at the very end of the process, transfer the funds to buy the home.
There's a lot for buyers to keep track of during every stage of the way, and these stages are just the basics of the main events from beginning to end. Because each property and buyer are different, buyers are should seek out Griesbach real estate agents who can help them navigate through the many decisions that come with home buying and eventual home ownership.
By Justin Havre