3 Things You MUST do When Buying in 2021

2020 is over! We made it. Time to look forward to 2021, and if buying a home is on your list this year, you’re going to want to continue reading. These are the top 3 things to do today whether you’re buying in February or buying in November.

Number 1. 

Get in contact with a Mortgage Broker. This is one of those things I can’t stress enough. The earlier you involve the expertise of a Mortgage broker, the better. Avoid those online mortgage calculators. All they’ll do is mislead you. Every mortgage application is different, and there are hundreds of factors that need to be taken into account. 

A mortgage broker will be able to look at the big picture, and offer options on how to improve your application to appeal to more, or better lenders. Starting the conversation early with a mortgage broker will allow you to begin searching for a property in a realistic price range that will ultimately save you time, and energy during the process. It is important to note that, like realtors, the Buyer don’t pay for their services, mortgage brokers are paid by the lenders directly.

Number 2. 

Brainstorm your ideal closing date, and work backwards. The closing date is the day you get the keys to your new home. Do you imagine yourself in a new home before the start of a new school year perhaps? We’ll want to work backwards from that time. The average amount of time between getting an accepted offer and the closing date is usually around 2-3months. Some are quicker, some are longer. Now you know when you need to have the accepted offer by. Before you receive your exciting accepted offer, you will have to keep in mind that it may take up to four weeks until you find the right home. Keep in mind, in the highly competitive market of Waterloo Region, it is rare that your first, or second offer on a house gets accepted.

By working backwards from your ideal closing date, it will ensure you are not making rash decisions. Give yourself time for each stage of the buying process. 

Number 3.

Enlist the expertise of a Realtor early on. Even if you’re unable to buy at that moment because maybe you’re still saving up, or still stuck in a lease; start chatting with a Realtor sooner than later. There are a few main reasons for this. Firstly, you’ll be able to interview multiple buyer specialists without being under the pressure of timing. I’m a huge advocate for interviewing your agent before working with the first one you happen to run into. Everyone knows someone who works in real estate, however you want to make sure you are working with the best fit. We are not all created equal, our experience is not equal and our services are not equal. Find someone you like, and who produces results. Keep in mind, that when you do hire a real estate professional you will not owe them a fee for their services. Realtors get paid from the seller of the home you purchase at the time of the closing date. For a list of interview questions to ask potential realtors, click here.

Secondly, you’ll be able to get set up on a search portal to start paying attention to the market you’ll soon be purchasing in. You can highlight properties to watch and get your Realtor’s opinion plus track sold prices which are often much different than the advertised price. This information will prove vital to being able to jump into the market running. You don’t want your market education period to be happening while you’re also trying to submit competitive offers. This is key!

If buying a home is on our 2021 wish list, I hope that these three simple steps helped you with getting started! Remember, first chat with a qualified mortgage broker to really hone in on what your price range is, and how to prepare your finances before purchasing a home. Next, map out your ideal time frame. This should include searching for your dream home, getting your accepted offer, and figuring out your closing day. But remember, working backwards will help you immensely! Lastly, do yourself a favor and find the right real estate professional who is the right fit for you, and who will make your experience all that much easier.