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  You can save yourself a lot of time and frustration by determining very early how much you can afford to pay for your new home. (Comstock) |
Visiting model homes is exciting, seeing the many layouts and the latest technology and building products, but there are questions you need to ask yourself first, to get the most out of touring time.
Where do you want to live?
You may have heard about the three golden rules of real estate: Location, location, location. How far is it to work? From friends and family? Are schools nearby? Is there public transit?
It's generally true that in some areas of the city, you get more home for your money. But the savings can be false if you have to buy a second car to commute to work or just to get the kids to their daily activities.
Is a large lot important for family play? Are recreational activities a major part of your lifestyle? Is a short drive preferable?
It's wise when making such basic choices to consider the needs of family members. It's also wise to look well ahead, especially if you're starting a family or have children who will be moving out in coming years.
What kind of home do you want?
A semi-detached house or a townhouse is often, but not always, less expensive than a detached single-family dwelling. If you like the idea of having friends and neighbours close by, this is a desirable choice. You're still king of your castle, it's just that there's another king on the other side of the wall.
If you favour more privacy or want a little more outside breathing space, you'll probably search only for detached houses. If you seek maintenance-free, shut-the-door-and-go-away-for-six-months living, you'll be looking at condominiums -- townhouses or highrise -- where in most cases the common elements are looked after by the condo corporation.
What features do you need?
Making a list of what's important to you and your family will help you narrow the search for the right home. You can make this checklist as detailed as you wish, including the features you'd like in every room (not just how many bathrooms, but which bathrooms have tubs or showers, for example).
Do you want a ground-floor bedroom or bathroom? An eat-in kitchen with a separate dining room, a fireplace, a den or home office, a finished basement? Do you want a deck, veranda or patio? For your condo, do you want a solarium or a balcony? How important is the view?
There's a difference between needs and wants. You might need three bedrooms, but the large master with a walk-in closet might be a want. Or, your wife might think the walk-in closet is definitely a need! Best to find that out now.
If you use a checklist, you can sit down at the end of a weekend of home hunting and make comparisons according to what's really most important to you, without getting sidetracked by that to-die-for marble flooring in one of the models.
What can you afford?
You can save yourself a lot of time and frustration by determining very early how much you can afford to pay for your new home. List your income, expenses, investments, savings and debt. Keep in mind upcoming events (getting married, starting a family, buying a new car) that could affect the size of a down payment or monthly payment.
Limiting your shopping for a home to those within your mortgage budget will make it easier. Applying for a pre-qualified mortgage is the wisest course, because you'll know exactly how much you can spend and what your down payment and monthly costs will be. Don't forget non-mortgage costs -- we suggest budgeting about two per cent of the purchase price for closing costs, such as legal fees, taxes and insurance.
Check these websites for more helpful info:
- Libro Financial Group, www.libro.ca (see link)
- Canada Mortgage and Housing Corp., www.cmhc.ca (see link), under Buying a Home
- Canadian Bankers' Association, www.cba.ca (see link)
Once you've settled on a price range, the kind of home and features you want and where you want to live, you're ready to find out what's available.
Jim Vanderhoeven is president of the London Home Builders' Association.
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