Are you ready to make the biggest investment of your life? Buying a home is often the largest financial decision you’ll make, so it’s important to weigh all of your options carefully to be sure that you’re ready to make the jump into home ownership. To help you decide if you have what it takes to become a homeowner, be sure that you can check off all the items in this list.
Purchasing a home costs more than just the down payment. There are also closing costs to factor in, such as legal fees and title insurance. You should also be prepared to pay mortgage insurance if you are putting less than a 20% down payment on the home. Compared to the total cost of the home you are purchasing these additional expenses may seem insignificant, but it’s important to be prepared. Be sure to talk to your real estate agent or mortgage broker about what costs you should expect to pay on your transaction.
There has been a number of significant changes in the Canadian mortgage landscape over the past year, especially regarding the qualifying rules. So before you even decide to start house hunting, it’s important to make sure you can qualify under the new regulations and get a pre-approval. If you can’t pass the mortgage stress test, you’ll need to improve your financial condition first or consider homes in a lower price range.
Even if you have enough money saved to purchase a home, a lender may still consider you to be a risk. For example, if your credit score is low, you have a large amount of debt on high-interest accounts, you’re struggling to pay your bills, or your job isn’t secure, you might not be ready to own a home just yet. Lenders will want to see that you can afford the home and be able to make the payments over the term of the loan.
There’s so much more to owning property than simply paying your mortgage and bills every month. There are a number of additional costs that go into maintaining a house, including repairs, updating appliances, renovations, landscaping, and snow removal. Even if you live in a condo, you still have to maintain the interior of your unit. So if you’re not ready to take on the extra costs as well as the work that goes along with it, it’s best to wait until you are. Or, if you are purchasing a rental property, you can hire a property manager to handle these tasks as cost-effectively as possible.
Buying a home is a big life decision and requires a lot of planning and saving. But if you’ve gone through our guide here and feel confident that you’re ready to make the jump into home ownership, contact us at Medallion Capital Group. We’ll help you navigate the buying and mortgage process and ensure everything goes smoothly.