Spring is one of the best seasons to buy a home. The weather is warming and the positive shift in weather is prompting people to come out of their winter hibernation and start the search for their next home. If you are on the hunt for a new house this spring, take a look at these six steps to guide you on your buying journey to the perfect home.
1. Determine your budget and must-haves
The first step before you begin the house hunt is to solidify your budget, what you can afford, and your must-haves for your next home. It's important to be realistic about your budget and expectations. While you may want a waterfront property or a four-bedroom home in the neighbourhood of your choice your budget may not allow it. The best home to buy is the one you can afford!
2. Get your credit in order
If you require a bond when buying a house, then a large factor in qualifying for your bond will be your personal credit score. While other factors like debt-to-income ratio and gross household income contribute to your chances of getting a loan, your credit score will directly affect your application, the interest rate, and whether you are required to put down a deposit. If your credit score is low, you will need to work on improving your score by paying your debts and obligations on time, and reducing your overall debt. The higher your credit score, the better your chances of getting the bond application approved.
3. Don’t forget about the transfer costs
While you wait for the warm weather to arrive, start stockpiling additional money that can be used to settle the transfer and bond registration costs. Paying a deposit towards the purchase price has many advantages, and can secure you better loan terms, but you must remember to make provision for the costs involved in buying a house and registering a bond.
4. Find a Real Estate Agent
While there are no requirements to purchase a home through a Real Estate Agent, working with an experienced agent can make the homebuying process far easier and less stressful. A quality agent will help with the property viewing process, narrowing down the best properties that meet your budget and homebuying requirements, as well as negotiating price and terms between you and the seller.
If you don't already have a good agent to work with, ask for referrals from friends or colleagues to see if they can recommend a good agent. It's also helpful to find an agent who has expertise and experience in your area or price range.
5. Line up your home loan
Once your credit score, down payment, and your agent is in place, go to certification website to start your home loan journey. WeApply can help you get started with a pre-qualification certificate, which will determine what you can actually afford based on your income, expenses and credit score. Having a pre-qualification certificate can also increase the strength of an offer -- especially in a competitive market -- because it shows that you are a qualified buyer who has the means to purchase property.
6. Search for that perfect home
You are now ready, so be disciplined while searching for your perfect home in your perfect price range!
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