As a first-time home buyer in GTA,the whole process seems to be a real challenge. Remember, this is likely to be one of the biggest investments in your entire life and just a single mistake can bring dire consequences than what you anticipated.So here are the best tips for buying a home for $1500 per month in GTA to help you make an informed decision regarding your buying needs.
1. Know your Credit Score
Your credit score plays a key role to help you qualify for a loan.A good credit score is a surety that you will be approved for a loan when looking to buy a home.A bad credit score, on the other hand, not only squashes any chances of getting approved for a loan but you will also be subjected to unfavorable terms even if you were to get approved for one.The interest rates will be so high,to say the least. So the first step to take is to check your credit report and find out if you can improve it.
2. Arrange a Mortgage
Getting an approval letter before embarking on a mission to find a home is just as important as anything else.Getting pre-qualified for a mortgage simply means that you know the exact amount your bank is willing to lend you.
Some of the important factors your lender will pay keen attention to include your income, down payment, credit history, and debts. The good news is that getting pre-approved for a mortgage is always a simple process and shouldn’t take much of your time if you are truly serious about it.
All you need to do is to contact a lender which again you can do directly via the phone.A loan officer will then check your credit report to ensure that you meet the minimum credit requirements.It takes a maximum of one hour to get a pre-approval letter. The pre-approval should be in written form and includes a guaranteed interest rate.
3. Know your True Budget
Before you start searching for your dream home,one of the most important things to put into account is your budget.Owning a home comes with pride but the associated costs present huge responsibilities.
For instance,some of the costs to bear in mind when looking to purchase a home include the loan payment,homeowners insurance,property taxes,HOA fees,and mortgage insurance.
So can you afford all these costs?Now,most mortgages entail the property taxes,the homeowners and mortgage insurance in escrow form and this is added to your monthly payment.
4. Find a Suitable Realtor
After settling for what suits you best and knowing your true budget,there is no harm in seeking the help of a real expert to help out in the home searching process.
The good thing about Canadian realtors is that they are not only highly trained but are also members of their local real estate board and the Canadian Real Estate Association.So you can fully rely on the right realtor to make your home searching process a success.
5. Have a Wish List
Knowing what you need is a vital aspect of buying a home. It’s advisable to make a list of the key features you will need in your new home.This will help you make an informed decision regarding your buying needs.
The best way to do this is to consult your home-owningfriends and family members.It could be anything ranging from the number of bedrooms in the house to the bathrooms or even a media room.
You are not likely to find a house with everything on your wishlist so the best way to do it is to know your priorities and base your decisions on that.You should be ready to compromise whenever necessary.
6. Get a Home Inspector
A home inspection is probably the most ignored yeta very vital aspect of any home buying process.Home inspections should never be skipped even though they are not one of the requirements by mortgage companies to close on a house.
So if you are looking to buy a new home then getting an independent inspector is one of the biggest favors you can do to yourself.The role of an independent inspector is key to ensuring that there are no problems or potential problems in future.
The approximate cost for hiring a home inspector ranges from $300-$400 and if the property has any problems at this point then you can have it fixed by the seller or repair it later by yourself after the seller has lowered the buying price.So you can see that skipping this step could cost you crunch cash in the long run if the house had problems initially.
7. Have your Team
Buying a home is probably the biggest investment you can ever make.The good news is that you don’t have to do it all alone.In addition to picking the right real estate agent in the Greater Toronto Area as well as the right lender,you will also need a lawyer to sort out the legal aspects of your purchase.
The role of a lawyer comes in handy when looking for translations of the piles of the associated legal documentsto ensure all your needs are protected.
Given the vast majority of professional lawyers out there, finding a good lawyer should never be a real challenge and all you need to do is to consult your friends and family members for some recommendations.
To wrap it up,it is evident that buying a home demands more than just getting a reliable realtor.There are a lot of factors to put into consideration to help you make the best decision regarding your purchasing needs as well as to avoid future regrets.Hopefully,this article has provided the relevant information you may need for your home purchasing needs.Time is ripe to jump into the bandwagon and get your dream home without wasting much hassle.