4 tips for purchasing a home this summer
Are you planning on buying a home this summer? The summer housing market is a popular time for buyers, so you certainly won’t be alone. This means it’s important to be as organized and prepared as possible by the time you start viewing potential properties. This will help you find the right home, and the right mortgage product, faster. Here are some tips to help you get started!
#1 Research the market
Buying a home this summer means entering the housing market during an interesting period. We are in the midst of economic shifts that are impacting several parts of the Canadian market, including the housing sector. It’s a good idea to learn about the current situation so you know what kind of market you will be jumping into. You don’t need to become an expert overnight! You will work with real estate professionals who will guide you and have the answers to your questions. However, it’s smart to research some basic information. For example, interest rates in Canada have been frozen since July 2023 as inflation continues to come down. Once the Bank of Canada is satisfied with the inflation rate, it will begin to lower interest rates as well, and therefore mortgage rates. Many experts are predicting this will happen in the latter half of 2023. Lower rates will likely bring in more buyers, which is something to be aware of as you search for your own perfect home.
Another key item to consider is how housing prices look in your area. If you can gain an understanding of how much properties cost, you can determine whether you can afford to live in a certain spot, and what your budget should look like. Housing prices vary based on size, location, age, and condition, but most areas can provide an average price estimate. For example, according to Zolo, the average housing price in Barrie is $801,000. This is something to keep in mind as you consider your future plans!
#2 Get pre-qualified for a mortgage
Whether you are buying a house this summer, or any other time of the year, a pre-qualification is an essential part of the process. This is a huge step that serves a couple key purposes. First, it allows a potential lender to evaluate your situation and determine what kind of mortgage financing you may qualify for. This is based on your current circumstances, so it is not a financing guarantee. However, it does give a lender the chance to get to know you and consider you as a potential future borrower. Second, your pre-qualification gives you the essential information you need to understand your position in the housing market. For example, you might learn how you could benefit from improving your credit score, lowering your debts, or adjusting your budget. These are all important factors in determining your future mortgage approval. Take advantage of this step to make your future moves in the market simpler and less stressful.
#3 Be specific about your housing needs
With so many properties out there, how do you narrow down which ones are right for you? It may be tricky, but it’s important to take the time to study your housing needs. These include all the non-negotiable factors your future home must meet. For example, location, access to amenities, and number of bedrooms might all be important points to consider. Your budget will also be critical to narrow down. You don’t want to look at homes you cannot afford, because you don’t want to be tempted to purchase a home that will cause you financial stress later on. It’s important to be specific about these factors for a couple of reasons. As we just mentioned, your home should fit your lifestyle and budget. Another key point is the fact that the housing market will have other buyers trying to find their next home. It’s important to be efficient in your search so you can narrow down your best options quickly, and submit your application as soon as possible. This will help get you out of the market, and into your home, sooner!
#4 Look past curb appeal
Finally, buying a home this summer means most properties will be looking their finest. This is the season of beautiful gardens, lush lawns, landscaping, and home exterior improvements. When you pull up to a property, you might be taken in by its curb appeal. However, it’s important to be able to look past the exterior and focus on what’s inside! A house might have the perfect yard, but if it doesn’t meet your needs otherwise, it’s not worth your investment. Plus, you will want to make sure the home itself is in good condition, and the current owners did not put all their efforts into the outside. You can certainly appreciate a good-looking property, as long as you also focus on the interior.
Purchasing a home this summer can be a great experience for buyers. The key to a successful housing hunt is preparation, and using the right mortgage professionals! Working with a mortgage broker means getting personalized advice and objective information that will help you secure the right home and product. Your broker’s goal is to help you meet yours, meaning you are their top priority. If entering the housing market is on your agenda, feel free to reach out! We can get you on the right track to homeownership.
If you have any questions about your mortgage, get in touch with me!