It may be your first home, or perhaps your fifth, but no matter how many times you’ve been through the home buying process, one thing remains the same: it’s a big job, involving a great deal of effort, time, and of course, money in Brampton and elsewhere. Every homebuyer has unique needs and wants in a home but the steps which they have to go through in order to buy their dream home are very similar. Here is a list of steps you need to go through as a homebuyer.
Step 1: Get Pre-Approved for a Mortgage
When it comes to buying a home in Brampton (or anywhere else), getting a mortgage pre-approval is a very important step. Not only does it help you understand exactly how much you can afford to spend on your Brampton home, but it often allows you to lock in an interest rate for a period of time which could potentially save you thousands of dollars for years to come.
Here is what to do to get a mortgage pre-approval:
1. Talk to a mortgage specialist or lender.
2. Complete a mortgage application to find out how much you qualify for.
3. Gather your financial information to finalize pre-approval.
4. Get a copy of your pre-approval.
Step 2: Down Payment and Insurance Premiums
Down payments generally range from 5% to 20% of the purchase price. To obtain a conventional mortgage, homebuyers are required to put down at least 20% of the purchase price or appraised value as a down payment. If you do not have the necessary time or resources to save a full 20% down payment, you can choose a high-ratio mortgage and buy a home with as little as 5% down payment. This option is called a high- ratio mortgage and it requires you to purchase default insurance.
Purchasers can use up a maximum of 39% of their gross family income for payments of mortgage principal and interest, property taxes, heat, other utilities, and condo fees (where applicable). A buyer’s total debt load (including consumer loans, etc.) can not exceed 44% of the gross family income. Check out our mortgage, taxes, and mortgage insurance calculators.
Step 3: Deciding What You Want
The third step to finding the right home is to determine what you are actually looking for. For instance, the location you want to live in, the type of home you want, the must-haves of the home, as well as the deal-breakers.
Step 4: Agent or No Agent
A great real estate professional will provide key market insights, sound advice and save you endless hours of time and money — all while helping you reduce the stress of a large purchase so you can truly enjoy the experience of buying your dream home. Buying a home in busy Brampton could be an overwhelming process without a real estate agent, so if you need any advice, give us a call.
Step 5: Start Your Search
Now the fun begins! Most searches begin online. In fact, over 90% of buyers start their home buying process on the internet. The most comprehensive website for property searches is Realtor.ca, a Canada-wide database of all active properties for sale, also referred to as the MLS® or Multiple Listing Service. This website allows you to narrow your search to a specific area, price range, key features and even displays the properties on a map.
Here’s what you can’t see online:
- Homes in hot markets that haven’t made it online yet.
- Expired listings or private sales not found on MLS.
- Insight and an insider’s edge.
Do you have more questions about the home buying process? Contact one of our agents today.