In today’s dynamic real estate market, being prepared is more crucial than ever. With nearly 32% of homebuyers paying all cash in 2022, the competition can feel overwhelming for first-time buyers. But don’t worry – I’m here to guide you through the essential first steps to make your homebuying journey smoother and more successful.
Start with a Strong Foundation: Meet Your Real Estate Broker
The path to homeownership begins with finding the right real estate professional. As I always tell my clients, working with someone who knows your desired area inside and out gives you a significant advantage. When choosing your broker:
- Look for someone with deep local expertise
- Read reviews and ask for recommendations
- Schedule an initial consultation to ensure a good fit
- Verify their track record in your target neighborhoods
💡 Pro Tip: Your real estate broker can connect you with trusted mortgage specialists and other professionals you’ll need throughout the process.
Get Your Financial House in Order
Check Your Credit Score
Your credit score is like your financial report card for lenders. Before you start house hunting:
- Request your free credit reports from all three major bureaus
- Address any discrepancies or issues
- Aim for a score of at least 620 (though 640+ is better)
- Consider credit-building strategies if needed
Save for Your Down Payment
The down payment often feels like the biggest hurdle, but there are more options than you might think:
- Traditional mortgages typically require 20% down
- FHA loans may need as little as 3.5%
- VA loans offer up to 100% financing for eligible veterans
- First-time homebuyer programs can provide assistance
Secure Your Pre-Approval
Getting pre-approved for a mortgage is crucial in today’s fast-moving market. When homes are selling quickly, having your pre-approval ready can make the difference between securing your dream home or missing out.
Why Pre-Approval Matters:
- Shows sellers you’re serious
- Helps you understand your true budget
- Speeds up the eventual buying process
- Gives you a competitive edge
Create Your Home-Search Strategy
Once your finances are in order, it’s time to set up your home search. I always recommend:
- Setting up listing alerts for properties matching your criteria
- Visiting multiple properties to understand the market
- Taking detailed notes during viewings
- Staying flexible with your schedule for quick viewings
Plan for Additional Costs
Remember to budget beyond just the down payment. Set aside funds for:
- Closing costs (typically 2-5% of purchase price)
- Home inspection fees ($296-$424 on average)
- Moving expenses
- Emergency maintenance fund
The Next Steps
Ready to start your homebuying journey? Having an experienced local real estate professional by your side can make all the difference. As we often say in Quebec, “Don’t be shy” to reach out with any questions about the homebuying process or our local market conditions.
Looking Ahead
Stay tuned for our next article, where we’ll cover what happens after you’ve found your perfect home – from making an offer to closing the deal.
Peter graduated from Lasalle College in hospitality and spent 13 years managing the infamous Chateau du Lac, where he built a reputation for leadership and forming genuine, trusting relationships.
Peter’s real estate career is built on a foundation of honesty, trust, and tireless effort. He takes pride in going above and beyond to ensure his clients feel supported and confident throughout their journey.
Outside of work, Peter’s world revolves around his wife and two young boys, who inspire him every day. A die-hard Montreal Canadiens fan, Peter never misses a chance to cheer on the Habs or crack a dad joke to keep everyone smiling.
This is #AskPete. If you have any real estate questions, feel free to send them and I will get you the answers. Or stay up to date on the latest tips for real estate buyers and sellers by clicking the YouTube button below:
