Before Canadian homebuyers jump into the wide world of mortgage rates and home loans, it’s important they understand what kind of property they’re looking for. After all, determining wants and needs can go a long way toward finding the perfect home, as well as cutting down on discontent down the line. Even more importantly, if a borrower understands what type of home they’re looking for, it can make the financing process easier. Deciding on a property can help determine how much money is necessary to borrow, making the mortgage process much smoother for both borrower and lender.
The most obvious choice when it comes to buying a home is affordability. Borrowers should take thorough accounting of their finances and determine how much money they can devote to mortgage payments each month. While special programs and loan types exist to help borrowers refinance their property purchases, it’s important to make sure a home won’t become a financial burden that borrowers can’t keep up with. Some properties are known as starter homes for a reason. They offer a jumping off point that homeowners can graduate from in the future when they’re financially capable.
After affordability, the most practical aspect of choosing a home is deciding how much space is necessary. The number of bedrooms and bathrooms, the size of the yard and garage – these are all features that should be decided on well in advance. This will help borrowers narrow down their choices, making it easier to find a home that suits their specific needs.
One determining factor that can influence both the size of a house and the kinds of features it possesses is its particular build. A single-family detached home stands alone as a unit, offering greater privacy for homeowners. A single-family semi-detached home is joined on one side to another home. While often less expensive than a fully detached home, these types of properties also offer less privacy.
In addition, homebuyers have the option of choosing among townhouses, mobile homes, manufactured homes, carriage homes and a number of other different property types. Each offers its own advantages and disadvantages.
Just as important as the size and type of property a homeowner buys is where it’s located. Location can influence a number of important issues, ranging from convenience to safety.
For instance, borrowers must decide if they wish to live in a more urban or rural area. Each choice features pros and cons, but their differences are vast. Another matter is how important proximity to certain services is to borrowers. Do they want to be close to a school for their children? Does the length of their work commute factor into things? How about closeness to a hospital?
Perhaps the most important part of choosing a location is in regards to safety. What are the crime statistics like in the area? Is there a neighborhood watch group? Is there proper street lighting? Is it safe for children to play outside?
Even if a borrower finds their dream home, they need to keep their future needs in mind. A 1-bedroom, 1-bathroom property may make sense for a couple, but what about the addition of children? Perhaps a large house seems nice, but what if a borrower is getting close to retirement? Do they really want large mortgage payments when their income will be reduced? Buying a home is an investment, meaning that changes to family size, as well as other unforeseen adjustments, must be taken into account.