Wednesday, August 26, 2009

6 Tips to Buying a home

When you are buying a home, it can be a stressful task; more than you can imagine. To help ease the stress, I have come up with 6 tips which ultimately make the process less stressful.

1.Know your Budget
When you are trying to buy a house, in the Toronto marketplace you have to know how much you can spend. For this you should be getting a pre-approval from a mortgage broker. This will allow a real estate agent to find a home within your specific price range. From this point forward it becomes a much easier process in locating that dream house of yours.

With a pre-approval you are telling the seller you are serious and ready to commit to the purchase; having a pre-approval helps you also when you are negotiating for the property.

2.Home Inspections are a Must
This might be redundant, but for any home you are considering to purchase you need to have it inspected by a licensed home inspector. A home inspector will locate any problems with the property, at times home inspectors find major issues and it could be a deal breaker.

3.Closing costs
You have to remember that when you are ready to buy a house, you have more to pay than just the down payment. There is a long list of closing costs that may come up, have your real estate agent compile the expenses so you can get the appropriate funds available.

4.Do Not Get Emotional
Some people may fall head over heels with their "dream" home and end up paying a price far over market value because they do not want to give the house up. You cannot let your emotions get in the way of your purchase, remember it is a business transaction and you do not want to regret any decisions you make.

5.Bidding Wars
When you find a great home that is underpriced you should be aware of the chances of a bidding war. Bidding wars are great for the seller, but not for the buyer(s). You may end up paying more than you anticipated because of it. Remember you have a budget and should not stretch it too far.

6.Date of Possession
Try to set a date where you can move into your new home right away, rather than having to find a short term location to stay at. Having to move once is more than enough work.

With these 6 tips I hope you are able to find your house and get settled properly. Do not forget, no matter how stressful buying a home is it will never beat the feeling of knowing you are done

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