5 tips to prepare for a 2025 home purchase

Are you getting ready for a 2025 home purchase? Preparing to buy a home is an exciting experience, but it also comes with a lot of work! It’s easy to feel a little overwhelmed by all the steps involved. However, you can save yourself some stress by beginning your preparations now. Here are five easy ways to put yourself ahead of the game so that come January, you are ready to go!

#1 As always, start with a pre-approval

No matter when you are planning to purchase a home, securing a mortgage pre-approval is always the best first step! If you are a repeat home buyer, you are likely already familiar with the concept of a pre-approval. If you are new to the housing market, getting a pre-approval is one of the most important ways to ensure your housing search goes smoothly. When you are pre-approved for a mortgage, this means a lender has reviewed your finances and given an estimate of what you might qualify for in a mortgage. This is based on current market conditions, as well as your current situation. If either of those factors change, your pre-approval amount may also change. This is why a pre-approval is not the same thing as a mortgage approval. However, it serves an important purpose for you because it allows you to gain some insight into how you fit into the market. If you need to put in any work to improve your financial situation before applying for a mortgage, your pre-approval will help you determine where to target your efforts. This helps you plan ahead and gain confidence in your standing in the market.

#2 Catch up on current market trends

A 2025 home purchase will come with its own set of interest rates and real estate trends, just like any other year. While you don’t need to be an expert in the field, it will certainly help you to take some time to learn about the kind of market you’re entering. For example, we will be heading into 2025 with an overnight lending rate of 3.25 per cent. The overnight lending rate plays a big role in determining mortgage rates, as the Bank of Canada sets the tone for the economic and real estate conditions to expect. Mortgage rates are generally on the decline compared to recent years, meaning many home buyers entering the market now will be able to secure a lower rate than they might have one year ago. You can also use local real estate websites to learn about the average housing price in your area, as well as supply and demand trends. Taking the time to familiarize yourself with the market will help you feel more prepared by the time you begin your house hunt.

#3 Consider your budget

Your budget is another important factor that will guide your housing search next year. Determining an accurate budget, and sticking to it, will ensure you are viewing homes within your means. This is important for several reasons. First, of course, is the fact that buying a home you cannot afford can lead to serious financial trouble down the road. It can result in missed mortgage payments, high penalties, and even the possibility of losing your home. Second is the risk of falling in love with a home outside of your budget. You can face huge disappointment if you set your sights on a specific home, then find out you will not be approved for the mortgage needed to purchase it. Finally, viewing homes beyond your budget is also a waste of your own time and energy. You should focus your efforts on finding properties that fit your budget so you can reach the perfect match sooner!

#4 Research potential neighbourhoods

Another great way to start prepping for your 2025 home purchase is to look into potential areas you might want to live in. Beginning the housing search can feel overwhelming, but narrowing down your preferred neighbourhoods can help you focus on your best options. When researching potential areas, think about your budget as well as your home requirements. For example, if you want a home with easy access to transit and amenities, you are most likely to be successful in an urban setting. Conversely, if you crave lots of open space, a more rural atmosphere is a better bet. You should also think about the size of the home you require, the average home prices in certain areas, and your overall impression of the areas you are searching. Think about what is most important to you and use that to guide your search. This will help your real estate agent narrow down potential properties for you.

#5 Get in touch with the professionals

Speaking of real estate agents, you should also be using this time to reach out to professionals in the industry who you will be working with! Specifically, it’s time to contact potential real estate agents and mortgage brokers. Your realtor will be essential for determining your budget, finding suitable properties, and submitting appealing offers. Basically, they are an invaluable part of every step of the buying process. Even if you feel confident in your own knowledge of the market, using a real estate agent is essential to ensuring you get the most out of your experience. Next, working with a mortgage broker is another important part of the process. Your broker is your guide to all things mortgage related, from finding the right product to securing the best lender and rate. As brokers, we have access to the best products and services to fit your needs. We can also help you improve your finances in any way necessary before applying for a mortgage to increase your chances of landing the perfect option.

At the end of the day, a 2025 home purchase has most of the same aspects as buying a home any other year. Doing your research, finding the right professionals, and preparing your finances are all essential. The best part is you can feel confident you are on the right track when you use a trusted mortgage broker! We are here to help you from start to finish, guiding you through the process and finding you the perfect mortgage product.

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.