5 tips to minimize home buying stress
Buying a home is one of the most exciting experiences in a person’s life. However, it’s no secret that it can also be stressful! From the outside, the prospect of finding the right home, taking care of the mortgage application and paperwork, and working with other professionals and the seller can all feel overwhelming. The good news is there are some steps you can take to ensure the process runs a bit more smoothly! Here are five helpful tips to minimize home buying stress.
#1 First of all, don’t rush!
It’s easy to feel pressured to enter the housing market. As friends and family start buying their first homes or upgrading to their second or third property, you might feel left behind if you haven’t bought your own house yet. Plus, sometimes the sheer excitement at the thought of being a homeowner is enough to push you into the market. However, you don’t want to rush the process before you’re ready. Entering the market before you feel fully prepared is a top way to bring on home buying stress. Instead, take your time and ask yourself some questions to confirm whether you are ready to buy a home. For example, are you prepared to maintain a property? Can you afford to make mortgage payments? Do you know what you need and want in a home? Slowing down and thinking about these items will help you enter the market when you truly feel ready to go.
#2 Get pre-qualified for a mortgage
The importance of getting a mortgage pre-qualification can never be overstated! A huge source of stress when buying is not knowing what you can afford. A pre-qualification helps limit this particular issue. Getting a pre-qualification means your mortgage broker examines your current financial situation to give an estimate of the mortgage amount you may qualify for. It is not a mortgage approval, and it does not mean you have secured financing. This is just a preliminary step that gives you a look at how your situation fits into the market, and whether you need to make any improvements. This is a helpful process, because it provides you with the information you need to ensure your future mortgage application is in top shape. A pre-qualification might help you target areas for improvement, such as paying off debt or building your credit score. The more information you have ahead of time, the more prepared you will be for the mortgage experience.
#3 Plan for all upcoming costs
It’s very easy to underestimate the costs of buying and owning a home. Most people think about their down payment and monthly mortgage costs, and might not put a ton of thought into other expenses. However, these additional costs add up quickly. You need to have money ready for closing costs such as legal fees, property insurance, land transfer taxes, moving costs, and inspections. You will also need to be prepared for ongoing ownership expenses such as taxes and maintenance. Generally, closing costs are about two per cent of the home’s purchase price. Be sure to consider these costs in your budget so you don’t come up short down the road.
#4 Don’t go over budget
The key item to remember as you move through the purchasing process is your budget, and the fact that it exists for a reason. You likely put a lot of thought and time into deciding on the right budget, which means it is an accurate representation of what you can afford. It’s easy to find the perfect home that is slightly over budget, and convince yourself that it’s worth the extra cost. However, it’s important to stick with the budget you created! Going over budget puts you at risk of becoming house poor, which means the majority of your income is used to pay for home-related expenses. This can be a huge financial stressor, and is something to avoid at all costs. While it can be difficult, try not to view homes over your budget, and only put an offer on a home you know you can afford.
#5 Work with a mortgage broker
Finally, one of the top ways to reduce home buying stress is to let a mortgage broker be part of the process! Brokers can offer invaluable guidance that will help you move through this experience with ease. We can discuss your financial situation to help you determine the right budget, evaluating your income, debts, assets, and expenses. This will give you a better understanding of your purchasing power in the market. We can also connect you with the best lenders for you, who can offer the right products based on your needs. Since we work with tons of lenders in the housing space, we have access to a wide variety of professionals who might be a good match for you. Finally, we don’t leave your side once the purchasing process is over! We are always here to discuss your changing mortgage needs, and can help you adjust your mortgage terms down the road if necessary.
Home buying stress can sometimes be unavoidable. After all, this is a major experience! However, it’s certainly possible to manage this stress so you can focus on the process and enjoy the feeling of finding the perfect home. Contacting a mortgage broker is one of the best ways to start this journey, so don’t hesitate to reach out.
If you have any questions about your mortgage, get in touch with me!