Are you in the market for a new home and wondering the best place to start? There are several decisions you need to make before you even start your home search. By asking yourself the right questions, you can quickly pinpoint what you want - and can afford - in your next home.
1. WHAT’S YOUR BUDGET?
See how your finances stand up to the 28/36 rule, which lenders use to see what you can afford to pay each month. A financial advisor or your real estate agent can help you crunch the numbers. Going through the mortgage pre-approval process lets you know how much lenders will allow you to borrow - plus it helps show sellers that you have the funds to backup your offer.
2. WHAT DO YOU NEED IN YOUR NEW HOME?
How many bedrooms or bathrooms do you need? What about a large kitchen, a home office or a playroom for the kids? How many cars need covered parking? It’s critically important to ensure the home you select meets your family and lifestyle needs now and in the near future.
3. DO YOU WANT A CONDO OR SINGLEFAMILY HOME?
Condos come with much less maintenance. You typically won’t be shovelling snow in the winter or replacing the roof, but you’ll likely pay monthly association fees to cover services and repairs in the community. Houses, on the other hand, come with more privacy and freedom to customize. They also come with full responsibility for maintenance.
4. HOW DO YOU FEEL ABOUT LIVING UNDER COVENANTS?
Depending on where you buy, you may have to pay Strata fees in addition to your mortgage. There are benefits such as
maintenance, community centres, and maybe even a pool or gym. But you also could face restrictive rules about the look of the outside of your home, like the colour of your front door, types of window coverings, and whether you can plant flowers in your yard.
5. WHAT SCHOOL DISTRICT DO YOU WANT TO BE NEAR?
Even if you don’t have children in the house, local schools will affect your property value. Prospective homebuyers tend to search with education in mind. Do your research on the schools in the areas you’d like to live in.
6. SHOULD THE HOME BE MOVE-IN READY?
Ask yourself how much elbow grease you’re willing to put into a home - or how much you’ll pay someone else to do the work.
Fixer-upper homes can be great after the work is done, but you’ll want to figure out your renovation budget before you
start your home search. A home-renovation loan might be the right resource for you. If you’re not ready for the extra financial commitment of rehabbing a home, or you can’t or don’t want to wait for remodelling projects to finish, then a home that’s move-in ready might be best for you.
After considering all these factors, you’ll be ready to start the home search with a clearer picture of where you’re headed.