Purchasing real estate is mostly the biggest purchase one will ever make. The transaction involves hundreds of thousands of dollars, be careful when buying a house because a minor mistake can cost a lot of money.
Some important points to consider before making your final purchasing decision are:
Before you do anything, get pre-approved for a mortgage. This will give you the exact amount bank has pre-approved you for.By knowing the exact amount and other terms, it will be a lot easier to search for the right property.
For example, if bank has approved you for a mortgage of $250,000, you will know your budget and shop around accordingly.
The Canadian mortgage rates depend on several factors, it is important to know your mortgage rate during the pre-approval process.
Just because a property price falls under your mortgage pre-approval price, it doesn't mean it's the right price for that property. The last thing you want is to "overpay" the biggest purchase in your life. Use Google, Kijiji, MLS, and find a local realtor to make sure you are paying the right price for the house you want to buy.
Sometimes, buyers like a property and want to purchase it at any cost; this creates a bidding war that only helps the seller.
A house (including a condo) can look perfect from outside but it is the buyer's responsibility to do the due diligence and find out all possible issues with it. There are professional property inspection companies that can help you with that process. You don't want to find out that the house you just purchased has some foundational problems after buying it.
The only reason you have heard the phrase "location, location, location" before is because it is that important. Don't underestimate the power of a good location because it can play a most important role in any property's future value. When it comes to location, you don't just want to see the house's value in next 5 to 10 years, you also want to see how it can impact your life while you are living there.
Two costs should be crystal clear to you before buying a house. First of all, the closing costs such as realtor's commission, lawyer's fee, and other closing costs. Second of all, the ongoing costs such as property taxes, utility bills, condo fees if it's a condo and other ongoing expenses. Sometimes, higher ongoing costs can have more burden than a one-time purchasing cost.