Posted 6.11.13 @ 16:5
If you want to get ready to buy a home, you need to make sure you’re in the right place financially before you spend the big bucks. You’ll need to take a long look at your credit and bank account, figure out whether or not you want to spend money on luxury real estate or if you want to buy a starter home, and you’ll need to make sure that you’re getting the most for your money. Working with a realtor or luxury real estate agent will help you understand your options, but you’ll also want to do some heavy lifting on your own.
How Much Can You Afford?
Getting ready to buy a home always comes down to understanding just how much you can afford. You’ll want a 20% down payment to get started, but there are some loans that will allow you to buy a home with as little as 5% down. You don’t want to go this route unless you absolutely have to – if you’re not ready to buy right now, you may be better off just saving money until you have your 20% down.
You’ll also want to get pre-approved for a mortgage before you start shopping for homes for sale. Real estate can be tricky business, and you really want to know that you’re prepared to buy! Getting preapproved will help you identify your target budget and help you avoid wasting time on homes that you don’t want or can’t afford.
What’s Your Credit Look Like?
You’ll find this out when you get preapproved for a home mortgage, but you should really do some research on your own before you start applying for a mortgage. You’ll want to order your credit report and you’ll need to find out what your credit score is.
A “good” credit score will be in the 600+ range, but you’ll really want it to be 650 or above to get the lowest interest rates and best mortgage terms. If your credit is below this you’ll still be able to get a mortgage, but you’ll be paying a lot of interest in the long run. It’s best to work on your credit now before you have to start applying for mortgages and shopping for a home. Know where you’re at with your credit before you begin to apply.
Work With a Luxury Realtor
Working with a luxury realtor to find the right homes for sale can seriously save your buns. You want to work with someone that can help you work within your target budget and really make the most of yoru money. The average Canadian buyer will look at about a dozen houses before they settle on the right one, so don’t just buy the first one you see. Know your options, get out there and really figure out which one is right for you. Talk with a realtor or real estate agent today – after all, why do all the heavy lifting on your own when you don’t have to?
Contact The Goodale Miller Team today!