Shopping for your dream home can be quite exhilarating.
Your imagination is in overdrive as you zip from property to property. It’s thrilling to look at a room and consider the best colour to paint it, which drapes will look best and where to put the divan.
Then reality sets in.
As fun as it may be to house hunt, there is still the not insignificant matter of securing a mortgage.
I’ve tried to make the process easy for you so you can get back to your fantasizing about where to plant the hydrangeas. Here is an easy step by step guide to buying your dream home.
#1 Decide on What Your Dream House Should Be
Sit down with a pencil and paper and scribble down everything you want in a house.
Then make three columns labeled Must Have, Nice to Have and Expendable. Being very honest, consider where each of the items you previously listed belong. Then fill each of the corresponding columns accordingly.
#2 Have a Budget
Once again, you need to be brutally honest and realistic about what you can afford. Calculate your expenses, both for housing and for the rest of your daily life.
If you get this wrong you could find yourself house poor and your dream house becomes a nightmare.
#3 Double Check the Size, Location and Price
You should ask the seller why they are selling their home, but that shouldn’t stop you from doing your own research.
Research that the location is actually a good one. It should be in a good school catchment area, have easy access to shopping and motorways and be low on the crime index.
Check that the asking price is in line with some recent house sales in that area to make sure they are not asking too much. Likewise, an unusually low price should set off some alarms.
#4 Work Out The Mortgage
Use a calculator to compare mortgage lenders so you can see an easy side by side comparison of all your options.
#5 Research Home Loan Options
After figuring out how much of a mortgage you can afford you’ll need to explore the options for your home loan. You’ll need to pick the mortgage with the terms that will work best for you.
Find out if a preapproval letter is a possibility. This will save a lot of time in both your house hunt and the buying process.
#6 Get A Home Warranty
Wear and tear on your home and appliances is inevitable.
Purchasing a home warranty is a good way to have some peace of mind that if anything goes wrong, you won’t have to worry about the cost.
Yes, this guide probably took some of the shine off of the excitement of house hunting. Armed with the right information, however, it will not be as stressful as it could be.
Which means that you can relax and actually enjoy the process of finding, and funding, your dream home!