Shopping for a New Home in the New Year? What to know!

It’s time to start thinking about your New Year’s resolutions, what do you want to improve in the New Year? Maybe you want to start saving more money, maybe you want to pay down your debts, maybe you want to find a new job or maybe you want to purchase your first home.  If your New Year’s resolution is to start shopping for and purchase a new home in the New Year keep these tips for homebuyers in mind.

5 Helpful Tips for New Home Buyers

Order Your Credit Score.  Before you start shopping for your first home and before you visit your bank you should know your credit score, this will help determine your odds of being approved for a mortgage loan.  Ordering your credit score also gives you a picture of how you stand financially; a high credit score means that your financial situation is stellar and a low credit score means that you may have some financial messiness to clean up before you apply for your mortgage.

Get a Mortgage Preapproval.  Getting a mortgage pre approval from your financial institution or from a licensed mortgage agent gives you an approximate price of the home that you can afford to buy.  If you are not approved for the mortgage amount that you originally wanted then maybe you will have to pay down your debts, maybe you will have to save more money for your down payment or maybe you will have to make some corrections on your credit bureau in order to increase your personal credit score.

Find Your Neighbourhood.  Once you get your mortgage pre approval and you know the amount of money that the bank is willing to lend to you, you can then start shopping for your home.  Using a real estate agent and searching through MLS listings are a great way to narrow down your search requirements. You can choose to search in a specific neighbourhood or you can choose to search for a specific purchase price range. You may have to adjust your criteria or change your neighbourhood in order to find a house that you can afford.

Make an Offer.  Once you find your dream home you can make an offer to purchase. Most home sellers and real estate agents will ask to view a copy of your mortgage preapproval when you make the offer.  You will then have 10 to 15 business days to visit your bank and be approved for your mortgage loan. Most offers to purchase are conditional based on your mortgage loan approval. During this time you will also have to order a home inspection to make sure that your new home is safe and up to your living standards.

Visit Your Bank.  If you are ready to purchase your home then you will have to visit your local bank branch or contact your licensed mortgage agent to get a firm mortgage loan approval for the specific property that you want to purchase.  A mortgage pre approval is a general guideline whereas your firm mortgage approval takes all of your personal information into consideration and it is a mortgage loan approval for a specific property.  You and the sellers will agree on a possession date and then you will have to find a notary.  If you don’t have a notary your bank or your real estate agent can refer you to one.

Happy Home Shopping!

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