1. Prior to the offer to purchase, have in hand the bank’s pre-approval
Combined with the offer to purchase, the bank’s pre-approval is a powerful tool to show the strength of your proposal. This serves as proof to the seller, in writing, that you are solvent and will be able to follow through with the financing. It might even make all the difference between getting your offer accepted, versus another one. Also from a practical stand point, the pre-approval allows you to know your real budget. You might be richer than you think : ) !
2. Select your preferred area
Why choose your preferred neighborhood at the very beginning? It is important to choose the area that suits you best, as it is pretty much the only thing you won’t be able to change post purchase. Once you have selected the right area, you can focus on the other characteristics of the property: size, number of bedrooms, backyard, etc.. At the end of this process, if you can’t find the right house within your budget, redirect your attention to your next preferred area. This will allow you to achieve your best area/property match.
3. Have a building inspection done
The pre-purchase building inspection is an investment that can save you thousands of dollars and years of headaches. Whether new or old, properties always have one issue or another. Some might seem bigger than they really are; others might seem minor at first glance, and turn out to be more serious later. Make sure to seek advice from a professional, in order to get a clearer, more realistic sense of what you can expect down the road. Bare in mind, most properties will require some, or more, work at the time of purchase. Rule of thumb: the required amount of work to be done in the short term is usually equal to 2% of the property’s value.
4. Surround yourself with the most professionals
The key to a successful and trouble-free transaction is to work with the best professionals in the industry. Surround yourself with the best brokers, building inspectors and notaries, to ensure the most valuable investment. Visit the Resources section on our website; our team is here to help you every step of the way : )