If home buying is on your to-do list this year, there are some tasks to tackle before you start shopping. To help you prepare, here are five New Year’s Resolutions for homebuyers that you’ll definitely want to keep this year.
1. START SAVING FOR YOUR DOWN PAYMENT
It’s important to start thinking about how you will come up with the money – whether it’s using your RRSPs through the first-time Home Buyers’ Plan, savings, or financial help from the Bank of Mom and Dad.
2. CHECK YOUR CREDIT RATING
According to credit-rating company Equifax, a score of 690 or higher is considered “good.” Lenders will use this score in tandem with other factors, such as your debt-to-income ratio, to determine mortgage eligibility.
3. CREDIT CLEAN-UP
If you’re not happy with your credit score, take some time to bring it up to par before you start the pre-qualification process.
4. GET PRE-APPROVED FOR A MORTGAGE
Pre-approval is a written confirmation of the approved amount and the promised rate, so you can shop with confidence within a budget you know you can afford.
5. START SHOPPING
Online is a good place to start your search, but nothing beats first-hand experience. With budget in mind, bundle up and hit the streets to explore different neighborhoods.
Last but not least... work with the right agent who has experience in the area and the type of home you plan to purchase. They will make setting up viewings easy, and be ready and on your side to negotiate the best price when it comes time to finally make an offer.
If you're thinking of buying and would like some tips or assistance, reach out to us!