Homebuyer’s Checklist: Everything You Need to Know

Buying a home is a major investment in yourself and your family. It also represents a significant financial pressure in both the short and long term. Before you start looking for properties that could be your new home, here are some things to consider and have prepared.

1 – Assess your financial position

At the very least, you should have an updated credit score, a reasonable budget based on your personal and family income, and a significant down payment prepared. It is also very helpful to have a mortgage pre-approval done with a reputable financial institution.

Having an updated credit score will help with securing your mortgage. Remember that a higher credit score may allow you to obtain better mortgage interest rates, potentially saving you money on each payment.

Consider what kind of budget you have. A mortgage is only part of the financial equation. Your electrical bills, property taxes and applicable maintenance fees all have an impact on your budget and are not part of the monthly mortgage payment.

Save for a down payment. In Canada, you generally need a down payment of at least 20% to avoid paying for mortgage insurance. The more you can save, the lower your monthly payments will be and the sooner you can pay off your mortgage.

Once you’ve prepared your documents, get pre-approved for a mortgage. This will detail how much your financial institution is likely to feel comfortable loaning to you, and can help determine the price range of properties you can work with. This will also show sellers that you’re serious and prepared to make a competitive offer.

2 – Determine your housing needs and wants

Now that you have a budget you can work from, create a wish list of the things that you absolutely need for your home, and a separate list of the things that you wish you could have.

For your needs, these are the things that are absolutely essential, and a property without them is immediately ruled out. It is important to note that the larger this list is, the longer it may take to find a property that meets all those needs.

For your list of wishes, list them and rank them in order from most important to least important. Be clear, and as detailed as possible in this list. This is the list that will help separate out the properties that are merely good matches from those which are excellent matches for what you want.

Once you have a list, find a realtor who is ready and willing to work with you to find the properties that meet your needs and your budget.

3 – Start visiting properties

As your agent, I will work to create a list of all the properties that meet your needs, and discuss with you which properties you want to start viewing. I will work with the sellers to arrange viewings of the properties with you, and work to answer any questions you may have while you’re there.

Once you find a property, I strongly recommend hiring an inspector to do a more thorough inspection of the property, paying special attention to things you may have noticed during your viewing.

4 – Make an offer

Once you’ve found a property that you’re sure meets your needs, it’s time to make an offer to purchase the property. Part of the process will be to do a comparative market analysis to see what the property is truly worth and ensure that you make an offer that reflects the value of the property, while staying within a comfortable budget.

As you prepare to make an offer, I will outline for you the closing costs that will be paid as part of the purchase and ensure that there are no surprises on what the final cost will be, as well as when payment is due.

5 – Move into your new home!

Once you’ve successfully purchased your home, use the time between your purchase date and your possession date to start updating your contact information where needed, make a plan for your moving expenses, and pack to make the moving process as pleasant as possible.

Conclusion

By following these steps, you can feel comfortable knowing exactly what the homebuying process will look like and that your needs are being met at every stage of the process.