Steps to buying a home - Part 1
Step 1 : Get your financing in order
- Speak with your bank or mortgage broker
- If you don’t know what you can afford you might be seeing properties that you will never be able to buy
- Lenders will pull your credit report which can show you your score and estimate what rates you will qualify for
Step 2 : Put together a need list,want list and deal breakers
- Create a need list first i.e. 3 bedrooms because you need it for all the family members
- Generate a want list that are things that are nice to have - like ensuite washroom in the master, garage, hardwood flooring
- Make a deal breaker lists where these items will make you not even consider the house, like being on a main street or it’s a total gut job
- One thing is that your need and want list might change after you start going to tour places as reality sets in. Since you are looking in Toronto there will be much push and shove as our prices have been on the rise and supply is low
Step 3. Start doing online research
- Places like realtor.ca have list prices for all the homes available on the market
- Check out wikipedia for neighbourhoods and just google areas
- Google maps can show you what’s close by and other things like train tracks, amenities or weird industrial buildings (This could be good or bad)
Step 4. Find a real estate agent
- You can either find a good Toronto realtor through a referral, the neighbourhood specialist, or online presence
- Hire someone that has experience and not because they are your best friend’s brother
- There are a lot of real estate agents in Toronto to choose from as they are nearly 40,000 strong - at the same time there are a lot of part time Realtors. Ask yourself, would you hire a part time lawyer or part time doctor?
- It has been shown that only a small percentage of home buyers interview more than 1 agent. Do your due diligence! Interview at least a couple.
Look out for part 2 of this series!