Buying your first home is exciting. You’ve done all the work, saved up money for a down payment, and are now ready to say goodbye to renting forever. But before you call a REALTOR®️ and start picking out paint swatches, there are a few things you should do to get ready so that when you do find your home, you’ll be ready to make an offer that wins you the property.
Before you do anything, get pre-approved
Before you can learn to walk, you have to crawl—to the bank that is, with all your financial information such as income, debts, down payment, and credit history. All of this information will be used to give you an idea of how much of a mortgage you will qualify for when looking at homes and the interest rate you’ll pay.
You want to do this step first because you don’t want to look at homes that are too far out of your price range, nor do you want to sell yourself short if you can comfortably afford more. Once you know your price range, you can move on to considering where you want to live.
Research neighbourhoods
The neighbourhood you choose to live in can make a huge difference in how satisfied you are with your purchase. For example, if you don’t own a car, you’ll likely want a place that has a good walk score, allowing you to get around to local amenities on foot. If you have children, it also helps to know what schools are in the area.
You can also protect your peace of mind, both physically and financially, by knowing whether a neighbourhood has low crime rates, is set up for long-term growth and appreciation, and is desirable to future home buyers if you ever decide to sell. All of these aspects will play a significant role in your enjoyment of the home and your return on investment and should not be overlooked.
Make your wish list
Maybe you have a long list of everything your house needs, from a beautiful backyard space to a large kitchen and four bathrooms. But what on this list is a must, what is a nice-to-have, and what is a complete no-go? Your wish list may be long, but if you want to find the perfect home for you, it’s not about getting everything you want. It’s about picking and choosing what’s going to make the most sense for livability and needs and negotiating on the rest.
For example, if you have three kids, your must-haves may include four bedrooms and two full bathrooms. In contrast, a nice-to-have could be a backyard garden that’s already flourishing.
It’s also worth knowing what you’ll be able to add in the future, such as a luscious green space in the backyard, and what can’t be changed, such as the number of rooms. Maybe you’ll find everything on your list, but it’s more likely that you’ll have to compromise on a few nice-to-haves so you can check off all your must-haves.
First-time home buying can be a scary, exciting process, but when you are prepared with research, your wish list, and pre-approval, you can take a lot of the stress out of it so you can enjoy the process and end up in a home you love.