The First 4 Steps to Take Before Purchasing a Home

The initial thought of purchasing your first home can be exciting, nerve-racking and confusing all at once. There are many unknowns if you’ve never been through the purchasing process but once you know where to start, the process becomes much less intimidating. I’ve listed 4 steps leading up to purchasing a home that will help guide the way to a positive home-buying experience.

1. Get Pre-Approved

The minute the thought “maybe I should buy a home” enters your mind, go and speak with a Mortgage Broker. Bringing a professional into the equation early on will make the process much smoother for you going forward. The best part is, there’s little to no cost to you to get pre-approved. Here are the main reasons why you want to talk to a Mortgage Broker first:


You May Have No Idea What You Can Afford


Time is valuable, which is why you don't want to waste it searching through endless listings and touring open houses when you don't know what you can afford. By getting pre-approved early on, you will know right off the bat how much you'll be able to spend on a home, making your home search more efficient.


It Limits Obstacles


By getting pre-approved early on, the lender will be able to identify any obstacles you may have to get approved for a loan such as a bad credit score, too much debt, not enough years of income to show, etc. In identifying and addressing any obstacles you may encounter prior to finding your dream home, you increase your chances of successfully getting financing which leads to less stress when you're ready to make an offer on a home.


It Makes You More Attractive


Put yourself in the Seller’s shoes; How likely would you be to accept an offer if you didn't know whether the buyer could get financing to go through with the purchase? Probably not very. By being pre-approved, your offer will be looked at much more seriously than others who have not. In a multiple offer situation this can help leverage your position to come out on top.


In addition to knowing how much home you can afford, be sure to go through all of the additional expenses that will be involved in purchasing a home. Here is a detailed guide of what expenses to expect.




2. Find a Realtor


Once you know how much home you can afford, now would be a good time to start chatting with a REALTOR®. Buying property can be a complicated process, often with many variables to consdier.  So, once again bring in the professionals early on to avoid mistakes and inefficiencies.


Read more about the benefits of working with a Buyer's Agent.



So how do you pick a realtor? The amount of bus ads and flyers that come at you on a daily basis by agents can be overwhelming. It can be challenging to find the right REALTOR® for you. You may even have a REALTOR® or two in your family or among your circle of friends. Before reaching out to them ask yourself “am I just hiring this person out of convenience or do I feel like this is the best person for the job?”. We often go through 2 or 3 doctors, dentists, or hair stylists until we find one that we like so why wouldn’t you do the same for someone who will be helping you make one of the biggest investments of your life? Feel free to interview a few REALTORS® until you find one who you trust, you connect with and who you feel has your best interest at heart.




3. Make a List of Must-Haves and Nice-To-Haves


Now that you know how much home you can afford, it's time to start thinking about what you want your home to look like. Whether you're purchasing a home by yourself, with a partner, or perhaps as an investment you need to know what your "Must Haves" and "Nice-to-Haves" are (this step can be done on your own or with your REALTOR® in case you want their opinion).


"Must haves" could include things like, "I need 3 bedrooms, I have to be within a certain school catchment for my children, the building needs to allow dogs, etc".  Anything that would affect your life in a meaningful way should be on this list.


Alternatively, your "Nice-To-Have" list should include things that wouldn't largely affect your life negatively but, by having them, could make for a nicer lifestyle. Some examples could be things such as, "I want to be within walking distance of shops and restaurants, I want a concierge, and/or I want an open-concept kitchen with an island". All of those could potentially have a positive influence on your lifestyle but perhaps they won't be hindering you if they didn't exist.



4. Go Tour Properties!

Now that you have your Criteria in place, it's time for the fun part...Touring Properties! Be sure to go over your "Must-Haves" and "Nice-to-Haves" thoroughly with your REALTOR®. Your real estate agent can then set up a search that will match your criteria and filter through the listings to narrow in on some properties for you to view together.