Buying a home is one of the biggest financial decisions you will likely ever make. The process is extremely exciting but can be very
stressful at the same time. Here are a few tips to help you determine if you are ready to buy a house and how to get started.
- Are you financially prepared?: Before you start shopping, you should evaluate your financial situation to see if you are in a position to buy a house and if so, determine the price range to shop in. Keep in mind you will need at minimum a 5% down payment. How much you can afford then depends on your current debt load and monthly income.
Your monthly debt load should not be more than 40% of your gross monthly income. This does include the mortgage principal and interest, taxes, and heating (this is known as PITH), plus any other debt payments you might have (credit cards, vehicle loans, student loans, line of credit, etc). You can do some preliminary work on this by checking out CMHC Calculators, and then it is time to make an appointment with a Mortgage Specialist or Broker. You will also have to be prepared for moving and closing costs.
- Where do you want to live?: You have now been pre-approved for a mortgage and are ready to shop! Take a look at the Listings page to help determine what area of Saskatoon appeals to you.
- What do you want in a house?: It's time to work on your wish list. You will want to make a list of what is important to you in a home. Do you want to be close to schools and parks? Is it important to have 2 bathrooms? Do you want a new home or a fixer upper?
- Contact a Realtor: If you haven’t yet contacted your Century 21 Fusion Real Estate Agent, now would be a very good time to call, email, or text me to set up an appointment.
- What to expect from a Realtor: When we meet, I will review with you my duties to you as a REALTOR. I will explain to you how you can earn Air Miles when buying a home through Century 21, then we will discuss your wish list and start shopping! I will set you up with automatic email notifications on new listings in the areas you are looking. When you find something you like just let me know and I can arrange for you to see the house.
- The Offer to Purchase: You found your home! We will discuss the price and write up the Offer to Purchase. We will discuss possession date and any other terms or conditions you want to write into the offer. At this stage you also have to be prepared to write a cheque for the deposit. You can provide as much or as little as you want for a deposit, but keep in mind the larger the deposit, the stronger your offer is. A common rule of thumb is to provide at least 1% of the asking price. You may also want to get a home inspection, which you as the buyer would be required to pay for.
- Removal of Conditions: Your offer has been accepted! You now have to make sure all conditions are removed within the allotted time frame.
- Possession Date: The day has arrived! We will meet at your new home and walk through the property to make sure all terms were met. I will then hand you your keys and welcome you to your new home!