Diamonds! Diamonds are a girls best friend. They’re also a very special gift to receive over the holiday season! Especially in the form of an engagement. If this was you, congratulations on your engagement!!!
Whether this is your first or your third engagement, there is a lot to think about and plan, including moving in together! Buying a house is a significant step, and it's important to approach it with careful thought and consideration. Here are some things to keep in mind as you embark on the journey of buying a house as a newly engaged couple:
1. Financial Assessment:
Budget: Determine how much you can afford per month. Consider your combined incomes, existing debts, and expenses. Factor in potential changes, such as starting a family.
Down Payment: Save for a down payment. The typical recommendation is 5-20% of the home's purchase price.
Mortgage Pre-approval: Speak to a mortgage lender and get fully pre-approved for a mortgage before going to look at properties. This will help you understand your budget and can strengthen your position when eventually making an offer on a property.
Credit Score: Check on your credit reports and scores. A higher credit score can help you qualify for better mortgage rates.
2. Property Considerations:
Neighbourhood: Consider the location carefully. Evaluate factors such as proximity to work, schools, amenities, safety, and potential for future growth.
Type of Home: Decide on the type of home you want (single-family, 2 storey, Bungalow, Townhouse, Condo, etc.) based on your lifestyle and future plans. Consider your current needs and potential future needs (e.g., if you plan to expand your family).
Condition of the House: Would you like it move in ready? Or would you like to be able to put your own spin on it? A home inspection is a really great way to identify any potential issues. By using this as a condition in an offer, the results can influence your decision on the property and negotiations.
Future or Resale Value: Consider the potential resale value of the property. Ideally, a real estate investment should appreciate over time.
Your first home doesn’t need to be your “Forever Home”: It’s okay to start small and stay conscious of your finances! In fact, we recommend it! Why start your life with your new fiancé in financial strain? If you purchase your first home well within your means with a 3-4 year plan to “upsize,” you’ll not only save money each month, you’ll give yourselves the potential opportunity to keep your first property as your first investment property, setting yourselves up for financial success from the very beginning of your new life together!
3. Legal and Regulatory Considerations:
Title Search: Your Lawyer will ensure a clear title by conducting a title search. This helps identify any legal issues associated with the property.
Local Regulations: Be aware of zoning laws, building codes, and other regulations that may affect your property.
Future Planning: Will there be any construction surrounding this area. Also, consider your long-term plans. Is the house suitable for your future goals and potential changes in your life?
Closing Costs: Be prepared for closing costs, which can include fees for the appraisal, title search, legal services, and more. Make sure you budget about 1-1.5% of your budget in addition to your down payment.
Remember, buying a house is a complex process, and seeking advice from professionals, such as real estate agents, mortgage brokers, and legal experts, can help ensure a smoother and less stressful experience.
If you or anyone you know are in this position, we would love nothing more but to help in any way we can. You’re welcome to reach out to us at any time or just go right ahead and introduce us directly! We look forward to finding your next home with you!
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