Buying a home is a major investment and timing is everything. You must be prepared and do your research to ensure you receive the best deal and save as much money as possible. Here are a few tips to help you determine when it is the right time to purchase your dream home in Markham.
Only If You Can Afford It
Many people feel pressure to purchase a home, even if they aren’t financially ready for it. Buying a home can be expensive. There are not only closing costs and lenders fees you must be aware of, but homeownership can be expensive. A popular financial rule is to budget at least 1% of your home’s purchase price for home maintenance each year. This means that if you purchase a $200,000 home, you should plan for at least $2,000 in home maintenance costs each year.
When You Have Established a Strong Credit Score
Your credit score is vital for purchasing a home. Without a good score, many lenders will find you too big of a risk and will not approve your mortgage loan. Plus, the lower your credit score, the higher your interest rates. This means you want to ensure your credit has been established before jumping into a mortgage. In Canada, you should aim for a credit score of 650 or higher.
When Interest Rates are Low
Once you have considered your own financial situation, then it is time to look at the market and other factors that can affect your decision to purchase a home. Ideally, you want to buy a home when you can receive a low interest rate. This can be difficult as interest rates vary, but look at a pattern and talk to lenders. If interest rates are on a continual climb, it is best to purchase now rather than waiting.
During a Buyer’s Market
You want a real estate transaction that benefits you. You want to have plenty of inventory, low prices, and motivated sellers. If you are interested in purchasing a home, contact a Markham real estate agent to discuss the current market and what options are available for you.
There are many factors to consider when purchasing your dream house. The important thing is you are ready for the responsibility of homeownership and your finances make it possible. To find out about the current market and to check out current listings, contact Markham real estate agent Martin MacFarlane today.