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A house is the biggest investment that most people will make in a lifetime, and probably for this reason alone, the process is unnerving. Potential buyers don’t take purchasing a home lightly, but go into it with fear and trembling. They are fearful of making a horrible mistake, with which they’ll have to live for a very long time. If you are in the midst of what is described above, and singing the “purchasing a home blues”, this article is for you. The following 8 steps will help you kick fear to the curb.

  1. Contact a professional realtor.

You will be surprised at how your headache will dissipate following her hire. A realtor that knows the ends and outs of buying a home, and is knowledgeable of the surrounding area, is priceless.

  1. Know Your Credit Score

Lenders will investigate your finances. They will assess how often you pay your bills and if they are paid on time. How well you do will determine where you fall on the scale that is between 300-900. The higher the credit score, the better risk you are deemed to be. You have the right to know what your credit score is, and you should check it out before attempting to buy a home. Canada’s two credit reporting agencies are: TransUnion and Equifax.

  1. Be Realistic

Be honest with your realtor, and with yourself about how much house you can afford. Of course you want to find a house that is comfortable for you and your family, however it should especially be a comfortable fit financially. Keep in mind that your home expenses shouldn’t exceed 28 percent of your gross monthly income.

  1. Pre-approval

Having a pre-approval in hand when shopping for a house is a good idea. It is one sure way of knowing exactly how much house you can afford (see number 2). It will assist you in narrowing your search to the homes that are within your price range.

  1. Think Long Term

There is a delicate balance between finding a house within your budget, and one that will grow with your family. It doesn’t make too much sense to purchase a home that is so small that it won’t meet your immediate needs. However, it could be that the home you choose is a tiny bit smaller than you expect to need, but it is within your price range and has renovation potential. You might add space down the road. 

  1. Make an Offer on the Property 

Your search has finally come to an end, or so you hope. Your realtor has lead you to the perfect home that fits your need, and now it is time to make an offer. Your realtor will handle this for you. You already know that the house is within your budget, but the offer your realtor will make will include a little wiggle room.

  1. Get an Inspection 

The lender will call for an appraisal on the home you’ve chosen to purchase. This is to protect their investment. In addition to the appraisal, also have the home inspected, prior to closing. If the inspector discovers problems, the seller may be responsible for fixing them before closing the deal.

  1. Closing

The closing is the culmination of the entire buying process. It is the date and time in which ownership of the home is transferred to you, the buyer. The transaction most often takes place at the title company. Attorneys may represent the buyer and lender, though it isn’t required.


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