Things to keep in mind before buying a home

Written by Posted On Thursday, 07 March 2019 00:36
buying a property in Toronto buying a property in Toronto

Buying a House in Toronto? Thinks to keep in Mind

The decision of buying a new or old house is not something that you make overnight. It can be stressful even under the best circumstances. People leave no stones unturned in ensuring that the house they buy fulfills all their desires.

Finance is not the only matter of concern here; you need to keep a lot of things in mind before heading towards the dream of having your own house. Starting from arranging finance to choosing a suitable location for your house, the ‘to do’ list is long and very stressful.

To help you in this task Rajiv Agnihotri of have narrow down the things that you need to keep in mind before buying your dream home.

1. Wait for the right time

Probably everyone on earth has the desire to live in his/her own house. But do not be in a hurry, even if the opportunity seems to be favorable. You need to ask yourself a hundred times before finalizing the decision whether you are ready to take up the responsibility personally and financially. If you have a stable income and have plans to stay in the same place in future then only you should proceed with your plan.

2. Know about your credit score

There are few factors apart from your credit score that have a direct influence on your chances of getting a viable mortgage. That is why it is crucial for you to obtain a free copy of your credit report online. Depending on the report, you can take the necessary steps to improve your credit score if needed. Your payment history, amount of debt, account mix and age determine the overall health of your credit.

3. Pre- approval

Pre-approval for a mortgage shows a clear picture of your budget but the concept of pre approval and pre-qualification are different. For pre-qualification you will be asked few questions regarding your financial standing by the lender and he will give you a rough estimate of how much you qualify for, though it is far from the actual figure. On the other hand, for pre-approval you need to submit proper documents to support your answers based on which the lender will tell you how much you qualify for.

4. Fix a budget

It is not necessary for you to blindly follow the amount approved by your lender to set your budget. The approval certainly does mean that you can afford it. Go through your monthly expenditure thoroughly to determine your affordability. Receiving the keys of your new house does not end the financial obligations you need to plan for mortgage payments, utilities and insurance. Additionally, you must have enough left over to deal with an emergency situation.

5. Start saving for down payments

When it comes to the down payment, you are recommended to arrange at least 20% of your house cost for it. The more you add to the down payment, the better the terms of mortgage are likely to be. This will also save a lot of your money in the long run.

6. Pick the right location

With a new home comes a new neighborhood and that is why you need to choose your house location carefully. Keeping that in mind, ensure that the surrounding community is offering you the kind of environment that you always preferred for yourself and your family.

You can look for the following things before finalizing a house

  • Distance of school, college and hospitals
    Nearby entertainment zones, shopping, dining etc
    Frequency of public transport
    Safety, security and crime statistics
    Noise levels and
    Property tax rates

7. Seek help

The house hunting process will be harder if you try to do everything alone. There is no harm in seeking a little bit of help from others. For example you can always consult with an experienced real estate agent who can guide you through the bumps along the way. So next time when you see an attractive house for sale in Toronto don’t forget to consider these points to make a wise decision.

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