Buying a Home? Here are 5 Things you Need to do!

So, you’re buying a home! You’ve just been preapproved for a mortgage with your bank and you’re wondering what your next steps are? First of all, congratulations. Getting preapproved is an amazing first step in the home-buying process! However, there is so much more you need to consider before diving into the purchase of possibly your largest asset. At Waypoint, we want to be here for you from start to finish, and that’s why we’ve compiled a list of the five key things you need to do when buying a home. Read on.

#1 Know What You Can Afford

Knowing what you can afford is critical when buying a home. Affordability isn’t simply the amount of your mortgage. You also need to consider factors like inspections, utilities, repairs and maintenance, desired renovations, property taxes, and home insurance premiums. Whether you are a first-time homebuyer or you have been through the process of buying a home before, these factors and others will affect how affordable any given property is for you. One thing is certain: your decision goes far beyond your mortgage payment. Remember to think about what you can reasonably afford today as well as how prepared you are to cover any unexpected costs in the future.

The right real estate agent will draw your attention to potential costs associated with the properties you are viewing, so be sure to work with someone you trust to enlighten you on both the good and the bad in the properties you are looking at. You can look up agents in your area here. Something like high utility costs could run up your housing costs in the long run. If you have a certain look and feel in mind, ask your agent to help you estimate the cost for renovation, repair, and maintenance.

#2 Select a Viable Location

You’ve probably heard your real estate agent say that buying a new home is all about location, location, location—and it’s true. The location of the home you decide to buy will impact your access to amenities like shops, restaurants, gyms, and banks. If you have children, you also need to consider how close their schools will be and how far you are willing to travel to work and to visit friends and family. If you are a nature buff, and even if you’re not, look into the location of public green spaces such as parks and bike paths for recreation.

Of course, you also need to consider the neighbourhood where you are shopping. Don’t underestimate the power of an untidy neighbour to put a damper on your home-owning bliss. Look at the state of neighbouring homes and decide whether you can live with the way your neighbours are living. If you are going to be living in close proximity to them, it’s important that you are comfortable with the look and feel of your neighbours’ homes as well.

#3 Identify Property Exposures

Every property comes with risks. Even a brand new build that is completely up to code can leave you vulnerable to certain exposures. It’s inevitable. Investing in a quality home inspection before you dive into this significant purchase could save you money down the road.

A good home inspector can tell you things about your potential new home that the sellers may not tell you. Perhaps the pipes in the home are old and pose a risk of flooding if they are not replaced. Perhaps the outbuildings surrounding the pool are considered unsafe for liability purposes and the premiums required to insure them fall outside your budget. These are both prime examples of exposures we see new homeowners run into all the time when purchasing a new home. Don’t let that be you. Identifying property exposures before you buy will save you valuable time and money down the road.

#4 Make a Pre-Purchase Checklist

Even experienced homebuyers often use a pre-purchase checklist to ensure the property they are purchasing is the right fit. Part of this is enlisting the help of a reputable lawyer to complete your purchase transaction. Remember that every lawyer is different, so let this serve as a reminder to do your research before you agree to transact with a legal professional.

The first thing on your checklist should be a list of pros and cons where you weigh the advantages and disadvantages of a new versus older build. Keep in mind that build quality is critical in whether or not you decide to sign on the dotted line. You should also consider the risks of not including a home inspection as a condition in your purchase offer as well as whether your budget is flexible enough to cover cost increases like enlarged mortgage payments and rising property taxes in your neighbourhood. If you have access to the information, look into the reputation of the builder, determine whether they have had any claims or lawsuits against their builds, and evaluate the results of those claims and lawsuits.

#5 Explore Your Home Insurance Options

Home insurance is arguably the most important piece in the purchase of a new home. If you are unable to insure your home, you could be on the hook for costly liabilities down the road. Before you commit to the purchase of a home, contact a reputable insurance broker like Waypoint Insurance to discuss your exposures, determine the correct coverage for your needs, and obtain a price quote.

Your Waypoint advisor can offer valuable feedback in this regard. If you have been preapproved and are in the market for a new home, we highly recommend booking an appointment to go over the details of your potential purchase and determine the coverage you need. Call in to your local branch to book today!