Chris Day & Amanda Day
Tips on Buying a Property
Updated: Mar 9, 2020
Tip#1 Obtain a Pre-Approved Mortgage
A pre-approved mortgage protects you against interest rate increases while you look for your new home.
A Mortgage Specialist will help you find the best financing. Once you've found the home you want to purchase you'll require the following in order to confirm financing:
1) A copy of the real estate listing of the property.
2) A copy of the offer to purchase or the building contract.
3) Documents to confirm employment, income and source of pre-approval.
Tip#2 Have the Home Inspected (optional)
Having the property inspected by a qualified home inspector will give you the added confidence that you've made a right decision (costs vary). When the procedure is complete, you may wish to ask for a full written report plus estimated costs for any necessary repairs.
We bring invaluable knowledge and expertise to the home-buying experience - and are dedicated to your needs from the search and purchase to the move-in process.
Tip#3 Hire a Legal Professional
A legal professional is there to represent your interests and provide the legal documentation required. We can provide you with the names of legal professionals who specialize in real estate. The legal process differs from province to province. A legal professional, along with ourselves, will advise you on the steps to be taken before the keys to your new home are presented to you.
Tip#4 Keeping Your Money Where it is
It's not wise to make any huge purchases or move your money around three to six months before buying a new home. You don't want to take any big chances with your credit profile. Lenders need to see that you're reliable and they want a complete paper trail so that they can get you the best loan possible. If you open new credit cards, amass too much debt or buy a lot of big-ticket items, you're going to have a hard time getting a loan.
Tip#5 Bigger Isn't Always Better
Everyone's drawn to the biggest, most beautiful house on the block. But bigger is usually not better when it comes to houses. There's an old adage in real estate that says don't buy the biggest, best house on the block. The largest house only appeals to a very small audience and you never want to limit potential buyers when you go to re-sell. Your home is only going to go up in value as much as the other houses around you. If you pay $500,000 for a home and your neighbours pay $250,000 to $300,000, your appreciation is going to be limited. Sometimes it is best to buy the worst house on the block, because the worst house per square foot always trades for more than the biggest house.
Tip #6 You're Buying a House- Not Dating It
Buying a house based on emotions is just going to break your heart. If you fall in love with something, you might end up making some pretty bad financial decisions. There's a big difference between your emotions and your instincts. Going with your instincts means that you recognize that you're getting a great house for a good value. Going with your emotions is being obsessed with the paint color or backyard. It's an investment, so stay calm and be wise.