Planning On Buying A Home This Spring? Part 1

A lot of homes will be bought this Spring. Are you ready to be one of the lucky purchasers?

Here are a few things to keep in mind.

1. How are you at dealing with stress? If this is your first time or your tenth time buying a home, the initial decision and the buying process will be stressful. Accepting that this is hard work, not everything will work perfectly, not everyone will be perfect people, and having a clear view of your purpose in buying will take you a long way to alleviating some of that stress.

You may be inclined to postpone dealing with your stress until the last minute or hold someone else responsible for your emotional state, but it is wise to address the stress right from the outset of your home-buying process. Oh, and if someone tells you they will make the process stress-free, run for the hills! This only means that you will be making other people happy by paying too much for too little.

2. The next step is to begin to build your team of professionals in various specialties: real estate, mortgage, legal, accounting, financial planning, home inspection. You do not necessarily want all of these people to be in cozy relationships with one another. Independent opinions are invaluable. On the other hand, you also want people who play nice with other professionals. There are pros and cons to choosing someone in your demographic group, ‘celebrity’ advisors, newbies, a relative, an experienced professional, or a friend of a friend.

Beware of choosing people who are superb at telling you what you want to hear. This old saying applies very well to real estate, “faithful are the wounds of a friend, but profuse are the kisses of an enemy.”

It is common in my business to find people calling around until they find someone who tells them what they want to hear (Yes, you can afford that luxury home on 10 acres!!! Or, yes we can get you a $$$ mega-mortgage at a super-low interest rate despite your career and credit challenges!!!). The scheme is to bring you down to reality once they have you signed. It might be better to start with reality.

3. Are you financially prepared for purchasing a new home? Depending on your disposition, you may spend years paying down your debts to zero, saving up a substantial down payment, and letting the market pass you by. On the other hand, you may have only been working for three weeks and are already trying to wedge yourself into your first tiny home with a sliver of a down payment. Simply put, financial preparation means that you can realistically make a down payment, pay the mortgage, and (for most buyers) enjoy this property for at least 3-5 years.

 To be continued…

Jay Brennan

Mortgage Agent

Dominion Lending Centres – Estate Mortgages Inc.

Lic#11363

Telephone: 416-795-1079