I've been talking about buying a new home lately, and it only makes sense – because I am in the somewhat long process of buying a home myself. It can be a scary process whether this is your very first home or if this is your fifth home that you have bought.
Here are my home buying tips.
1. Buy within your budget.
You should always create a budget before you start looking for a home. And, this doesn't mean that you should take whatever your mortgage company gives you as a budget and use it as your own.
You should create your OWN budget on what you can realistically afford. This amount will most likely be less than what the bank approves you for. Banks usually approve you for a higher amount – somewhere around 30 to 35% of your income. For most people, that is a very high amount and can lead to a person being very house poor.
2. Shop for the best home loan.
There are many different types of home loans out there. Some require a large deposit, some don't require a large deposit. You also want to find the best interest rate that you can get. A difference of just a few percentage points or even a fraction of a percentage point can mean a large difference with your monthly mortgage payment.
3. Visit the home at different times.
You should always visit the home you are interested in multiple times. You should see it during the day, at night time, and on the weekends. This is because a neighborhood can be extremely different during these times, and you don't want something unpleasant to pop up that you probably could have avoided by visiting the home more than just once.
What other tips do you have for someone who is looking to buy a home?
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