The rest of 2020 is considered a challenging year for the housing market. If you’re eagerly searching for a new home, don’t let the market stress you out. Instead, have a plan!

Are you buying a home for the first time? With these 10 tips, buying a new home can become a stress-free process. Otherwise, you could step an essential step or waste valuable time during your search.

Ready to find your home, sweet new home? Keep reading to discover the 10 steps you need to consider before you buy!

1. Determine Your Priorities

Before anything else, sit down and decide on what you’re looking for in your new home. Making a list of your must-haves can help you narrow down your options. Otherwise, you might have to dig through hundreds of listings before you find one that suits your needs.

What items do you want to prioritize during your search?

Are you looking for a home that has enough bedrooms and bathrooms for your entire family? Are you more concerned about finding an updated kitchen that features the new appliances you need? Maybe you want a home with a built-in pool already waiting for you.

Are you okay with fixing up a new home? If not, you might want to spend time only looking for new homes.

Regardless of your priorities, write them down. You might want to split your list between “want-to-have” items versus “must-have” qualities. That way, you can compromise during your search.

You might find a home that has all your “must-haves” but only one or two of your “want-to-have” qualities. Determining your priorities can help you discover which homes best suit your needs.

2. Research the Area

Before buying a home, you’ll want to choose an area to live in. Choosing an area before you start searching can help narrow down your options further.

For example, do you want to live uptown or downtown? Are you more interested in the suburbs or a more secluded area?

To help you decide on an area, make sure to consider nearby schools and your daily commute. How far is the neighborhood from where you work? Are you comfortable with a long commute if it means living in your dream home?

Taking these steps before buying a new home will help you find the perfect place to live. 

Thinking about moving to Toronto? Make sure to check out these most liveable neighborhoods in the area first!

3. Review Your Finances

The usual guideline is your home payment shouldn’t account for over 25% of your monthly income. Make sure reviewing your finances is part of your “buying a new home” checklist. Otherwise, you might fall in love with a home you can’t afford.

During this step, it helps to get pre-approved. Getting pre-approved will show homeowners that you’re serious about buying and capable of paying for your new home.

First, gather your finances. You can use online tools to determine your credit score.

If your credit isn’t strong, take steps to improve it. Pay off your debts and make sure to pay your bills on time.

You’ll also need proof of income, including pay stubs and W2s.

How much do you have in your savings? How much are you willing to spend on buying a home?

4. Establish a Budget

Once you review your finances, you can establish your budget. 

First, look into the current property value of the area you’re researching. Don’t forget to get pre-approved. What price range do you qualify for?

In 2019, the median price of a home in the U.S. was $277,000. However, prices can vary based on the area you’re researching.

When establishing your budget, don’t forget to consider your mortgage and other long-term expenses. 

5. Look into the Future

Before buying a home for your family, it helps to imagine the future. Do you plan on having more kids soon? In that case, you might want to choose a home that offers more space.

Otherwise, you might end up moving sooner than intended.

Do you have a parent who will move into a senior living center soon? You might want to choose an area closer to their facility.

How long do you plan on living in your new home? Try to imagine your life in five years, then 10. Does the home you’re researching fit your future life?

If not, you might want to continue your search before buying a new home. 

6. Explore the Neighborhood

Once you determine an area, start researching the neighborhoods with homes available in that area. Then, head over there! Drive around to make sure you’re comfortable with the area.

Are there restaurants and shopping centers nearby? Can you get groceries without a 30-minute drive?

Walk around, too. If you’re not comfortable or you don’t feel safe, continue searching.

7. Look Twice

It helps to visit an area more than once before you make a decision. Try visiting during the week and weekend.

You might find a neighborhood is rowdy at night when everyone’s home. Is there heavy traffic in the area during rush hour? Keep these factors in mind before making a decision. 

8. Consider the Kids

Don’t forget to think about your kids, too. For example, you might want to explore the schools nearby. 

Does your family want to spend time outdoors? You might want to look for an area with plenty of outdoor amenities, like a lake. If not, maybe you want to choose an area with entertainment options, like a nearby movie theatre. 

9. Schedule an Inspection

Once you’ve narrowed down your options, schedule a home inspection. They might find problems that are beyond your budget to fix. 

In some cases, the homeowner will fix these problems and adjust their asking price.

If there are major structural or plumbing problems, however, you might want to keep searching. 

10. Remain Realistic and Patient

As you use these steps to buying a home, make sure to remain realistic, patient, and flexible. Remember, you might not find a home that meets every item on your list. Sometimes, you’ll have to compromise before finding the home of your dreams.  

Home Sweet Home: 10 Factors to Consider Before Buying a Home

Ready to find your home, sweet new home? Keep these 10 tips in mind first. With these tips, buying a home will feel a lot easier!

Start your stress-free search with these tips today!

Looking for more helpful tips? Explore the Home Buyers section of the blog today before buying a new home!