First thing – buy the house you know that you can afford. The less expensive house means you could still make your payments even with less income to the budget. Talk to your mortgage broker what is the best ratio for you to use? Some lenders suggest that you can afford mortgage payments totaling about 1/3 of your gross income but others suggest closer to 28% for housing related costs including mortgage, insurance and taxes.
When to buy? There’s no real bad time to buy a house. In Kitchener-Waterloo and Cambridge area market is considered to be slow at certain times of the year – like the mid-summer or over the holidays and beginning of the year. If you’re thinking of buying, homesellers will be more motivated to sell during summertime, for example, and, sometimes you can get a better deal. However, during fall and spring markets, there will be more options to choose from.
Know neighbourhood where you are buying. Tour the neighborhood and look at the conditions. A safe neighborhood is usually well kept. You will see that residents look after the properties, and take pride in their surroundings. Don’t forget to check out number of homes for sale in the area. It can be an indication of its overall safety.
Remember about Closing and Hidden Costs. Unexpected costs like broken heating system, leaking roof, carpet cleaning, landscaping, crack in the basement, etc. can sneak up on you. They usually arrive around holidays and vacations, when money is already tight.
Use a trusted Realtor! Buying takes experience. House shopping it’s like an ongoing drama. You will be under a lot of emotional pressure. What not to buy is as important as what to buy. Use Realtor’s experience to make the best decision. A savvy realtor who works for you will protect your interests and guide you through the buying process.
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