Buying a home is one of the most significant financial decisions you’ll ever make. Whether you’re navigating a buyer’s or seller’s market, being prepared can help you make a smarter purchase. Here are some essential tips to guide you through the process.
1. Understand Your Buying Power
Your buying power is the combination of your creditworthiness and how much you can afford. Start by understanding the hidden costs of buying a home, including:
Down Payment: Typically 10–20% of the offer price.
Additional Fees: Transfer tax, PMI, title insurance, and legal fees.
To determine how much house you can afford, calculate your monthly budget. A good rule of thumb is the 36% rule, which suggests keeping monthly housing expenses below 36% of your gross income. Consulting a loan professional can clarify your budget and buying power.
2. Fix Your Credit Before Applying for a Loan
A credit score of 720 or above is generally considered “good.” Before applying for pre-approval, ensure your credit is in top shape:
Avoid opening new credit accounts or making large purchases.
Don’t hide any existing debts or loans.
Get a loan professional to review your credit and guide you through any necessary improvements.
3. Work With a Knowledgeable REALTOR®
Real estate markets can vary widely, even within the same city. A skilled REALTOR® can provide insights into micro-markets, helping you identify neighborhoods with growth potential or properties priced below market value.
Ask your agent for a buyer’s market analysis, a detailed report showing property trends and comparable listings. This will help ensure you don’t overpay for your dream home.
4. Take Your Time—but Act Fast When You Find the Right Home
Finding the perfect home takes time. While you’re shopping, keep these tips in mind:
Take photos and notes during showings to remember the details of each property.
Explore expired listings, which may offer room for negotiation if the original price was too high.
Schedule an in-depth consultation with your agent to outline your needs, budget, and preferences.
When you find the right home, act quickly. Hot markets move fast, and hesitation could mean missing out. Work with your REALTOR® to prepare a buyer’s offer packet, including:
A pre-approval letter from your lender.
Proof of your down payment funds.
Comparable property data to support your offer.
5. Don’t Skip the Home Inspection
Before finalizing your offer, hire a third-party home inspector to assess the property’s condition. A thorough inspection will identify:
Major Issues: Foundation, plumbing, or electrical problems.
Minor Issues: Cosmetic or easily repairable concerns.
Use the inspection report to negotiate repairs or adjust your offer.
6. Protect Your Credit Before Closing
In the weeks leading up to closing, maintain your financial stability:
Avoid major purchases (e.g., cars, furniture).
Keep your bank accounts steady—no large withdrawals or deposits.
Don’t change jobs or take on new debt.
These precautions help ensure your mortgage approval stays intact.
Ready to Find Your Dream Home?
Looking for your next home in Saskatoon or surrounding areas? Cindy Savino, an experienced and trusted REALTOR®, is here to guide you every step of the way. From providing a buyer’s market analysis to helping you navigate the local real estate market, Cindy is committed to finding the perfect home for you.
👉 Contact Cindy Savino today to schedule a consultation and start your journey toward homeownership. For additional resources, check out Cindy’s comprehensive Home Buyer’s Guide.
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