You’ve decided to take the plunge and buy your own home. But buying a home is no easy task. In fact, it’s likely the biggest investment you’ll ever make in your lifetime and there are many things you need to take into consideration, like where you should live, how much you can afford to spend, and when the right time to move is.
These are just some of the questions that buyers need answers to — and truthfully, they’re just the tip of the iceberg when it comes to buying a home. But there’s hope. With the help of a professional REALTOR®, you’ll be able to answer these questions and get a better sense of what the home buying journey looks like for you.
When is it the right time to buy a home?
Purchasing a home is a big investment, and knowing the right time to buy can feel like an overwhelming decision. There’s no one-size-fits-all solution, but there are a few indicators to consider and things to watch for if you’re considering a move.
• Consider your own personal milestones
The ‘right time’ to buy for some might be when they have enough money saved up to use as a down payment. For others, it’s when they are ready to settle down. But most REALTORS® can agree, that when you start asking yourself when you should start looking, and you’re already be browsing for a home online on your own, then it’s time.
• Mortgage pre-approval is a good place to start
Before you start dreaming about your new home, talk to a mortgage advisor and get pre-approval. This will ensure that you focus on properties that fall within your budget, rather than looking at homes that set unrealistic expectations.
It’s even a good idea to speak to a mortgage advisor a year before you’re ready, as they can assist you in coming up with a plan that will help you achieve your home-buying goals successfully. In today’s market, pre-approval is a must before you even start looking at homes if you’re a serious buyer.
• Interest rates can be an important indicator
Affordability is key when buyers are making any type of move. You want your mortgage lender to guarantee you the lowest available interest rate and have it locked into a 90 to 120 day guarantee. As soon as that’s done, it’s extremely important to jump right into searching for your new home. Once your goals and expectations have been set, and your financing is ready, you’ll be able to get the most value for your money when you make an offer.
How do you know when it’s the right time to move?
The last two years have seen many people evaluate their living space and make decisions on what they really value in a home. Do you want more space or more of a yard? Do you need to move, or can your concerns be addressed by renovations? Are you now working from home and looking for a designated office space? REALTORS® can help guide you through these questions and look at all your options.
• You’ll usually know in your heart when it’s time
Purchasing a home is a journey unique to each individual. You’ll know when the time comes. Maybe you’re expecting a child or you’re working from home and need more space.
Maybe you just want a change of scenery because you’re tired of living in a condo in the city centre. Or possibly you’re just tired of renting and living as a tenant, and the idea of having your own customizable space sounds ideal.
• Life changes can be a driving force in your decision
When your home no longer suits your needs, whether that’s lifestyle or financial, it’s time to move. When families grow larger, that dream home may suddenly be too crowded with not enough bathrooms. Or children move out and now the house is too big with too many rooms to keep clean. Sometimes people buy a condo or smaller property knowing they’ll be moving in the future, but they wanted to ‘get their foot in the door’ of homeownership. Life can throw us many curveballs, such as a death in the family, a divorce, job changes, health scares, etc. and these can be the driving forces behind a move.
• It can be a financially driven decision
Every move is surrounded by a unique set of circumstances. A REALTOR® helps navigate those circumstances by educating buyers about the current market conditions, and whether the move they want is doable at the time they make the decision to upgrade or downsize their current home.
Often, after having saved up enough money for a downpayment on a house, the monthly costs of owning your own home are less than what you were paying in rent, or equal to it. So the upside of owning your own home is that you’re gaining equity over time, instead of handing that equity to a landlord instead.
Buying a home — whether you’re a first-time buyer, upsizing, or downsizing — is an exciting time, and with the help of a REALTOR® you can feel confident in your purchase.
— Realtor.ca