The time has come and you are ready to buy a home in the Vancouver area, but before you start searching for your next home – review this checklist to help prepare for topics in advance and guide you to financial success in the future.
1. Reduce Debt & Increase Credit Score
Before you start looking for your Vancouver home you should request a credit report. This will give you a starting point on understanding your credit score before you request a loan. Your credit score will influence the interest rate of your loan.
2. Down Payment
While it is possible to purchase a home in Vancouver without a 20% down payment it’s best to get as close as possible. Save money to set yourself up with a large down payment. This will allow you to have a smaller mortgage rate, minimize insurance expenses, and receive a better rate. But don’t be worried if 20% isn’t attainable – you can buy a Vancouver home with as little as 5% down.
3. Keep a Conservative Budget
It’s just not the list price that is included in the purchase of a home in Vancouver. Keep in mind there are inspection fees, earnest fees, moving expenses, and typically new furniture purchases that you should prepare for in advance. Along with the initial moving expenses you should also be aware of your monthly budget moving forward. Vancouver homeownership comes with property taxes, strata fees if you purchase a home in a strata-run development, home repairs, Vancouver homeownership costs like garbage removal, clean water costs and more.
4. Get Preapproved
Your preapproval can help if you are putting in an offer against someone who is not…makes you look like a more ready now buyer. Your preapproval is based on your actual income, debt, and credit history. This is different from prequalification, which is how a lender determines how much you can afford.
5. Set Your Vancouver Home Buying Budget
By getting your finances in line before your first home showing you know the price range of a home in Vancouver that you can afford. It is important to set a realistic budget that fits your income level and characteristics you want in a Vancouver home.
6. Find an Agent You Trust
A Vancouver real estate agent will be able to guide you along the way and educate you in the home buying process. Also, keep in mind a Vancouver real estate agent usually is very well connected to the other professional you will need before closing day.
How to Buy a Vancouver Home
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