Buying a house in Canada is an exciting adventure, and also one which comes with a lot of responsibility. There is a process that a homebuyer has to go through, to make this type of purchase a positive experience.
Is the Time Right?
For most people, there is a right time to buy a house, especially for first time home buyers. If you are definitely planning to buy a home, you should ask yourself the following questions.
- Are you prepared to take on the financial responsibilities which come with house ownership?
- As a home buyer, are you prepared to make a commitment to the time and care a home needs?
- Is buying a home at this time the best option for you?
- What is the real estate market like? For example, is it a buyer’s or seller’s market?
The answers to these questions will help to determine if now is the time for you to buy a house.
Financial Readiness
A home buyer has to know that their financial situation is stable enough that they can take on the financial responsibilities of buying a home. Some calculations can be done to help to determine this.
- Take a look at much you currently spend on your living expenses, which should also include your debts. Then, compare this with what you have been able to save.
- A home buyer should study their budget carefully and determine how much money is available every month to invest in a home.
- How much of a down payment have you accumulated?
- What is the status of your credit? You can buy a house with cash, but it’s more common to take out a mortgage.
Mortgage Arrangements
A lot of home buyers like to know how much they can afford to spend on a house. The best method to discover this is by getting a mortgage pre-approval from the bank.
House Hunting
Once the initial queries have been answered, then the next step in the home buying process is to start house hunting. This is exciting but also a little stressful. It helps to rely on professionals to assist with this. An excellent real estate agent can help to make buying a house a pleasant experience. As a home buyer, there are some essential things to consider:
- Where do you want to live, and what is the neighborhood like in that particular area?
- What size of home do you want and how much land do you want to go with it?
- What style of home do you prefer? There are undoubtedly many to choose from, such as:
- A bungalow
- Two storey
- Split level
- Duplex
- Townhouse
- Condominium
Making the Purchase Offer
Once you have found the right house for you, the next step is to make an offer. This is where the real estate agent will be of great assistance. You, as the home buyer, have to decide how much you are willing to pay for the house. It is not likely you are going to pay the asking price. The realtor will compile the offer to purchase paperwork, which are legal documents. If the offer is accepted, then a final step is required.
Closing
All of the documents go to the lawyer, who will make sure everything is in order, then, will close the deal on the date agreed upon in the purchase offer.