The
first question you're bound to ask is, "How much
home can I afford?" That depends on a number of
factors:
- Are you set on a specific location
such as downtown, suburbs, or a rural setting?
- There
are a
variety of home styles you
will want to explore; for example, a condo, townhome,
2 storey home, bungalow, or spit level.
- Your income is also a determining
factor. When buying a home, a buyer has to take
into account the mortgage
loan, property taxes, utilities, and in some
cases condo fees. As a general
rule
of thumb, your monthly home-carrying cost
should
not exceed 30-35% of your
income.
- The market conditions.
Is
it a buyer's, sellers or
a balanced market?
There are also additional costs to
keep in mind. It's a good idea to work out exactly
what you want and what
you can afford before you begin the search. Be specific!
After all, you don't want to suddenly come to the realization
that your dream house has come with a nightmare of bills
and expenses. Stick to looking at houses in your price
range. The more you've thought it out, the better I can
meet your needs. A part of deciding just what you can afford can be accomplished
by meeting with your bank or a mortgage broker and negotiating
a pre-approved mortgage. There are many types of mortgages
and many different terms. Research all of your options.
This ensures that there are no surprises once you're ready
to make an offer. Once you've figured out your monthly expenses and what
you can afford, you can start your search. It could happen
that the first home you see is the one you want; or you
might look at home after home with none of them catching
your interest. Rest assured, the home you're looking for
is out there, and when you find it, you're ready to make
an offer. If your offer is accepted, the next steps are
closing and moving into your new home. Purchasing a home is easy once you put your plans into action.
Source: Remax.ca |
