If you’re looking for home buying tips in Mississauga, or any other area in the GTA, you have to start with the basics. Buying a home can be a challenging and frustrating process if you’re not prepared. The frustration can reach a boiling point if you run into unexpected costs or challenges along the way. Here are 10 things you should know if you are buying a home.
- Leave your money alone: Don’t make any large purchases or move your money from one account to another for three to six months before purchasing your home. This could reflect negatively on your credit profile. Lenders want to see that you are reliable and your money matters are stable. If you apply for credit cards, purchase big-ticket items or amass debt, you’re going to have a difficult time getting approved for a mortgage.
- Get pre-approved, not pre-qualified: There is a big difference between the two, and many home-buyers get confused on this point. A reputable realtor who offers free home buying tips in Milton, or surrounding areas, will ensure that you are pre-approved, rather than just pre-qualified. This means that the lender has gone through the steps of verifying your financial information, your credit score and credit history and your employment. Once you’ve been pre-approved, you will know exactly what you can afford, which will save you and your real estate salesperson much time and frustration.
- Be aware of ongoing costs: Many people focus on the price of the mortgage, but they forget about ongoing costs, also known as ‘sleeper’ costs. These include utilities, property taxes and condo fees. These can quickly add up, and if you’re not prepared to pay these monthly dues you could end up losing your home. Make sure you budget appropriately.
- Get that inspection: You wouldn’t buy a car without checking under hood, and you shouldn’t buy a house without checking that it is structurally secure and safe. When it comes to home buying in Mississauga, this should be top priority. Hire a home inspector to thoroughly inspect the home and property before purchasing. Make it a condition in your offer; this way you’ll be protected if you want to walk away from the deal in the event the home inspector finds major issues or potential issues.
- Don’t offend the seller: if you are going to place a bid on a home, your opening bid should reflect what you can afford, and what the home is actually worth, according to market conditions. Just because you want to re-paint the kitchen doesn’t mean you should offer $10,000 less. An offer that is too low will offend the seller and may sour them to any further offers from you. Always take your realtor’s advice on what a fair opening bid should be.