Would you be a better fit for renting or buying? In this post, we discuss both options, and where you might fit in.
Are you hoping to start searching for a house this summer? If so, you are likely also wondering how you can make the buying process easier during these changing market conditions. While the housing market will always be a little unpredictable, and perhaps intimidating for new buyers, there are steps you can take to increase your comfort levels and chances of success. Here are some tips we recommend in order to benefit from the market this season!
Be firm on your budget
A big part of making the buying process easier on yourself is determining an accurate budget early, and sticking to it. Your budget tells you what you can afford to buy, and at what point you would be crossing your financial limit. It’s essential to follow your budget to ensure you can make your future payments. Your mortgage, utilities, taxes, and other expenses must be covered by your budget. Failure to adhere to your financial boundaries can put you further into debt or cause you to become house poor. You can read more about what that means here.
Of course, you first need to create a solid budget in order to be able to stick with it. Designing your budget should take into account your income and expenses, as well as your savings. You should think about ways you can reduce your spending if necessary, and a reasonable timeline for building up the financial stability you need. You can refer to this post, where we discuss how you can properly budget for buying a home.
Most buyers have an idea of the kind of property they want to purchase. Some people want a condo in a downtown core, while others search for a rural, two storey house. Everyone will have different buying standards and requirements, and it’s good to determine what yours are early on. However, try to still be open to different options in areas where you can be flexible! For example, you might not need easy access to public transit, so perhaps you can consider both urban and rural properties. Maybe you are open to townhomes as well as detached houses, or perhaps the number of bedrooms you have isn’t particularly important. Once you determine your buying standards, try to be flexible with the rest. This will open up more opportunities and a wider variety of potential properties.
Get a pre-approval
Those hoping to make the buying process easier should absolutely make it a priority to get a mortgage pre-approval! We often stress the importance of pre-approvals, but it still can’t be emphasized enough. A pre-approval connects you with a potential mortgage lender, who will give you an estimate on how much you may be able to afford in mortgage financing. This is based on your current income and expenses, which a lender will compare to the housing market in order to determine where you might fit in. A pre-approval does not guarantee you a mortgage, because your financial situation may change, so a lender is not committing to you at this point. However, it gives you a good idea of what you can afford, which you can use to direct your search. This will help you find the most suitable properties. Plus, if you are able to maintain your financial circumstances, there is a good chance you will ultimately be approved for a mortgage. Pre-approvals put you in touch with lenders early and help you navigate the market. This can make the approval process move more quickly, putting you on a fast track to owning your home!
Contact a broker early
Of course, the buying process is always easier when you use a mortgage broker! Brokers are here to help you have the most successful experience possible. We can sit down with you and work to determine your budget and mortgage needs, real estate agent options, and potential mortgage lenders. While we like to help our clients secure the lowest rate, we also emphasize the importance of finding the right mortgage product as well. This ensures you end up with a mortgage that supports you, and that you can afford. Getting in touch early allows us to provide you with the most guidance possible, from start to finish. We are dedicated to helping clients like you find success in the market. Once you decide to buy a home, it’s never too early to reach out!
Purchasing a home can be complex, but these tips will help make the buying process easier. Be sure to take advantage of all your options, and don’t be afraid to ask for help! The most successful home buyers are the ones who make use of mortgage professionals throughout their journey.
If you have any questions about your mortgage, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.