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Midwest Canada Minute - May 01, 2011

By
Real Estate Agent with RE/MAX of Lloydminster

Smart Steps to Home Buying

Well, spring seems to be finally here, as evidenced by increased listings and home buyers out in full force.  The influx of activity doesn't seem to be focussed only in the city, but rather all over the region.  This is definitely a good sign the market is returning, as many people are once again feeling confident in their personal employment and financial situation. 

With so many relatively inexperienced buyers active in the market, Vern and I thought it may be useful to go over some recommended home buying steps, so that you are ready to make an offer with confidence when the time is right. 

It doesn't matter if you are looking for your first home, or a trade up property, please speak with your lender or mortgage broker about what you can realistically afford first.  When you have a pre-approval in place, you can shop for housing that you know is in your price range, and make the offer knowing you can complete the sale if your offer is accepted.  When you shop above your price range, you are simply wasting everyone's time.

Most mortgage pre-approvals also will lock in an interest rate for a defined period of time.  Given the volatility of the mortgage market these days, and the historical fact that interest rates often will adjust after a federal election, this can actually save you thousands of dollars over the term of the loan.

Reach for a pad of paper and make a list of your needs and wants.  When you and your Realtor are shopping for your next home, remember to consult that list often.  It is important to concentrate on the needs; any of the wants achieved in the process is a bonus.  If you buy a property that doesn't meet most of your needs, then we will for sure have it back on the market before too long!

Doing your homework will save you time in the long run; in fact, Vern is often quoted as saying "it's not how quickly we start; it's how well we finish!"  Tour some of the areas you are interested in.  This becomes particularly important when purchasing outside of the town or city you currently reside.  For example, not all towns will offer the amenities you are looking for.  Families with children should feel comfortable with the schools that they will be attending. 

Make sure you and your significant other are on the same page.  We often get a lot of calls from one, wanting to look at a property that would not suit the other.  This could be anything from an acreage 20 minutes out of the city that would mean a lot of driving for the partner running after the teenage sports star, down to a fixer upper that no one has the time or skill to fix! 

Leave your browsing for the shopping mall.  Remember that every time you ask to visit a home, you are effectively displacing that family for an hour or more, not counting time spent preparing for you.  Treat sellers as you would want to be treated, for some day the shoe will be on the other foot!

Be honest with your Realtor, they are they to help.  They will keep a watchful eye on what becomes available in the market until you find the perfect property to fit your needs and budget. 

Keep these steps in mind, and your journey into home ownership will be a lot less stressful. Happy House Hunting!

Michael Dewing is a Realtor with RE/MAX of Lloydminster and partner in The Midwest Group.  If you have questions or comments on this article or other real estate matters, he can be reached at 780.808.2700 or through the Group website www.wesellmidwest.ca

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