Ready to buy your dream home?

It's not that complicated. Consider the following before you commit.

1. GET PRE-APPROVED

The first step to purchasing your dream home is figuring out how much you are pre-approved for a loan. Depending on the lender, the amount of mortgage (loan) you're eligible for can vary. Keep in mind that you should have a credit score of at least 600 and a down payment of at least 5% of the home value.

2. DON'T FALL FOR THE LISTING PRICE

If a home is listed for $699,000 and the home down the street was recently sold for $750,000, you can be certain that the Seller is looking at the higher price as a comparable. If you're pre-approved for $700,000, it's best to view homes that are listed around $670,000 so that even in a bidding war you have room to adjust your budget. As a rule of thumb, take a look at your pre-approved amount and search for homes within a range of your current budget and $30,000 less than your budget.

3. QUESTION: WILL THIS HOME APPRECIATE?

If the Seller of your dream home bought the property for $600,000 in 2017 and is now listing for $800,000 in 2019, it has clearly appreciated significantly over time. As a Buyer, you want to make sure that home prices in the area are not stagnant so that when you're ready to move, you're able to make a profit.

5. AVOID OLD HOMES OR BE PREPARED FOR THE INSPECTION

If a home is 30-40 years old, you can guarantee that even if the furnace or A/C is running, it's not going to be running for very long. Newer homes have less foundational issues, they are easier to insure and there's a lower likelihood of calling an exterminator. Nonetheless, if your heart is set on a sweet, old bungalow in a quiet neighbourhood, pay close attention to the inspection and ensure all necessary repairs are made.

6. DID YOU KNOW: PROPERTY TAX IS HIGHER IN SMALLER CITIES

Although homes outside Toronto are more affordable, due to small population sizes, property tax is much higher in the GTA. If you're buying a brand new home from a builder, you will have no frame of reference for how much you will have to pay in property taxes. If you currently have questions about property taxes in an area of interest, book a free consultation today.

7. LOOK FOR A BASEMENT WITH A SEPARATE ENTRANCE

Even if the basement isn't finished, having a separate entrance will help you in the future. It can add to the resale value of the home and if you're tight for cash, you have the option of renting out the basement.