Before You Buy a Home, Follow These Four Critical Steps

Every home hunter wants to fast-forward to the exciting part—when you put in that winning offer, sign those official papers, and eventually get the keys to your new dream home. But to get to the good part, you need to follow some tried-and-tested steps along the way.

Nabbing the perfect property takes professional guidance, in-depth research, sound strategies, and a little push from lenders. But all that work will pay off when you finally close on your dream home. 

Here are four critical steps to take before you even start submitting offers.

Hire the Right Realtor

At their best, realtors wear several indispensable hats. They tirelessly search for properties that match your unique criteria. They fight tooth and nail to advance your offers in the bidding stages. They shepherd you through the administrative process, ensuring your paperwork is spotless and timely. And they ensure that closing works smoothly. 

At their best. You shouldn’t coast through this step of the process. Search for the best realtors in your area, meet with them, and get a sense of what they can offer you in the buying process. 

Research Your Perfect Neighbourhood

Your perfect neighbourhood might not be the next person’s. Some people prioritize good schools and green space, while others opt for buzzy nightlife and a stellar transit score. Therefore, to find your perfect neighbourhood, begin by listing your unique priorities and criteria. 

At a minimum, you want somewhere safe and clean – ideally with growth potential. From there, make a list of your must-have priorities in order of importance. Work with your expert realtor (from step one) to match these priorities to real neighbourhoods, thereby narrowing your search scope. 

Line Up Mortgage Pre-Approval

Seasoned buyers know this step intimately, but it still bears mentioning for first-time home hunters. Your mortgage pre-qualification won’t hold water in the house-hunting process. Most (if not all) sellers consider serious bids only from pre-approved prospects. 

Lining up pre-approval is a hands-on process, but it isn’t challenging per se. Speak to a mortgage broker about the process. They’ll intake your current financials, credit history, proof of employment, proof of down payment, current debts/financial obligations, etc., and then explore your options. 

If all goes well, you’ll receive your pre-approval and be locked into a rate for 90-120 days. 

Develop a Game Plan 

You’re almost ready to start making offers. The last thing to consider is developing a game plan with your realtor and partner (if applicable) – strategies and expectations that will guide the home hunting process. These might include: 

• Your budget: a rough estimate of your price range, and willingness to “bid up” in the presence of competing offers. 
• Your subject clauses: The conditions you need in your purchase offers, like “subject to financing” or “subject to home inspection.” Craft these conditions strategically with your realtor based on the current market and your risk tolerance. 
• Your “non-negotiables”: home and neighbourhood features that you need to see represented.
•  Your “flexibilities”: Things you (and your partner) are willing to bend on. 
• Your communication protocol: How you will communicate with your realtor for quick, seamless decision-making. 

Follow these four steps to start your search on the right foot.