What Young Families Should Know Before House Hunting

Buying a house for your young family can be an excellent idea. Purchasing a home will help your family build equity, live as they please, and hopefully have a more secure future.

But buying a house isn’t a straightforward task.

There are multiple factors at play, and you must make the right decisions to avoid regrets and solidify your future. Here are some things you should know before you start your house-hunting journey:

#1 There Is Value in Finding a Top Realtor

There are many realtors in the market nowadays due to the hot nature of the housing market. Picking the right real estate agent is critical. You need to avoid inexperienced realtors who put pressure on their clients or don’t have their best interests at heart.

Instead, look for an agent with the following qualities:

• They are experienced, licensed, and qualified.
• They have excellent reviews.
• They offer top customer service.
• They are fair negotiators and will advocate for you.
• They will guide you through all the paperwork.

Most importantly, look for a professional with local expertise. For example, only work with the best Lawrence Park real estate agent if you’re searching for a home in that neighbourhood. Not only will a local Lawrence Park realtor help you find the home of your dreams, but they can tell you about the excellent schools, parks, amenities, and transit systems in the area.

#2 You Should Know Your Credit

Your potential lenders will judge you by your credit. Start by checking your credit report and credit score. The good news is that you can get one free credit report per year from all three major credit bureaus.

Search your credit report for red flags that are hurting your score such as defaulted balances or errors. To boost your credit, pay down your credit cards, increase your credit limit, reduce your overall debt, and avoid applying for more loans — slowly but steadily, your credit will improve.

#3 What Can You Afford?

You can use a house affordability calculator to understand how much you can afford to pay for a house. Remember, there are many costs involved. You must be prepared for all of them to avoid stress down the road:

• Down payment
• First mortgage payment
• Realtor fees
• Legal fees
• Appraisal fees
• Insurance
• Taxes
• Moving costs
• Repairs
• Upkeep

#4 Getting Prequalified Has Its Advantages

Many homebuyers get prequalified for a mortgage before hunting for a house. Getting prequalified for a mortgage shows home sellers and realtors that you’re serious about buying a property. It also gives you a fair idea of what you can afford.

To get prequalified, you’ll need to answer some questions and share some documents with a lender. Afterwards, you’ll be told how much they’re willing to lend. Many lenders will also lock down an interest rate for a short period of time after you prequalify for a mortgage.

In addition to these factors, you should also try to stay flexible in your house-hunting. Note down some core features your home must have but try to keep an open mind. For example, many young families start with smaller homes only to sell them later when their family has grown.

Starting with the right professionals and facts on your side, you can greatly optimize your house-hunting adventure.