Is home buying on your to-do list for 2019?
Montreal’s real estate market currently favors sellers – which means that home buyers will need to take extra steps to save money and time during their purchase.
Here are some resolutions that will guide you on your journey to homeownership:
Resolution #1: Improve your credit rating
The lower your credit score, the higher your offered interest rate will be. Lending fees and terms are directly related to your credit rating – a good credit score will indicate a trustworthy borrower and will be favored by banks and other lending institutions. There are several things you can do to quickly increase your credit score: pay your credit balance before the due date, keep your balances below 15% of your credit limit, and don’t apply for any new loans or make any hard inquiries before applying for a mortgage.
Resolution #2: Save for your downpayment
Saving for a downpayment will require some prioritization. Take a look at your expenses over the past few months, and sort out the non-essential spending (eating out, membership costs, travel, shopping, and entertainment) from the essential spending (rent, groceries, bills, medical expenses). Then, decide which non-essential activities you can cut down on until you reach your financial goals. Try setting concrete resolutions with a fixed deadline – for example, deciding not to buy new pieces of clothing, or only eating home cooked meals, until your full downpayment amount has been saved.
Resolution #3: Get Pre-Approved!
A pre-approval strengthens your offer by proving to the sellers that you have already been qualified for a mortgage loan by a bank. In a competitive market, having a pre-approval could mean the difference between winning or losing a bidding war. Buyers putting in an offer without a pre-approval attached may need to go above the asking price in order to compete with other pre–approved offers. Avoid this easy mistake by requesting a pre-approval from your bank or from a mortgage broker.
Resolution #4: Set up an alert
In a hot market, a good deal will sell fast. Make sure you stay up to date on new listings by signing up for a property alert. Property alerts automatically send you homes listed on the market by and real estate broker or agency in Montreal. You can filter by price, location, and other buying criteria.
Resolution #5: Work with a trusted broker
An experienced broker will save you plenty of money and time, by steering you away from risky investments and negotiating on your behalf with the selling agent. In a hot market, their market knowledge will come in extra handy, as they will help you compete with other interested buyers. Buying with a broker is free (commissions are paid by the seller, not the buyer) so it makes sense to benefit from their professional guidance.
This article, 2019 New Year Resolutions For Home Buyers, appeared first on Shupilov News.