Purchasing your dream home can be one of the most exhilarating moments in your life. More than just a milestone, buying a home sets you forward to the lifestyle you want for you and your loved ones.

However, there’s a lot more to consider than just money when it comes to buying a home. Does a property in a high-end village complement your other life goals? Would living in your dream home now help you achieve your long-term goals? Before embarking on your home buying journey, take the time to establish checkpoints through your life goals and define the home you should purchase.

Here are the 8 tips that’ll help home buyers avoid costly mistakes that could quickly turn your dream of homeownership into a nightmare.

Purchasing your dream home can be one of the most exhilarating moments in your life. More than just a milestone, buying a home sets you forward to the lifestyle you want for you and your loved ones.

However, there’s a lot more to consider than just money when it comes to buying a home. Does a property in a high-end village complement your other life goals? Would living in your dream home now help you achieve your long-term goals? Before embarking on your home buying journey, take the time to establish checkpoints through your life goals and define the home you should purchase.

Here are the 8 tips that’ll help home buyers avoid costly mistakes that could quickly turn your dream of homeownership into a nightmare.

  1. Outline your life goals

Before you set-off on your home buying journey, discover and stay true to your life goals. Begin with writing out your financial, career, lifestyle, and housing goals and create a step-by-step plan to attain them. Be sure these goals are attainable, realistic, time-bound and as specific as possible. Moreover, a written plan will provide you a timeline for your home buying process.

      2. Motivate yourself

During home shopping, it’s normal to encounter exhaustion and frustration along the way. But this doesn’t mean that you should lower standards just to deal with the hassles of searching for a home. Take your time and be patient. Start by creating a positive mindset and setting attainable goals that’ll excite you. 

A vision board’s a great way to motivate yourself. It’s essentially a dream board or a goal board that enacts the power of visualization. You can create a vision board for you and your loved ones living in your new home. If you’re a retiree, try planning out exciting activities you want to try in the neighbourhood to put on your vision board.

     3. One step at a time

Break down tasks into smaller steps to avoid becoming overwhelmed. Know where to start. Remember that buying a home doesn’t start and end when you apply for a mortgage and arrange a home viewing. Instead, it begins months before when you decided that you’re ready and capable to buy a home.

Don’t shy away from asking for help and seeking professional guidance. Gather qualified professionals on your team to plan and work through your goals together. 

     4. Make necessary changes

Buying a home requires not only careful planning but also strict discipline, especially in terms of finances and lifestyle. As soon as you start saving money for your home, get rid of unnecessary habits and excessive expenditures that could sabotage your dream of home ownership. Keep in mind that you’re saving for a down payment for your new home and are about to commit to a mortgage. At this point, a change in lifestyle’s definitely necessary, no matter what form it is.

     5. Do your research

Shop around with a variety of lenders and compare their loan offers and mortgage rates. By shopping around the available mortgages in the market, you’d be able to choose the one that best fits your financial situation. You can do this by seeking help from a trusted mortgage broker who knows the ins and outs of the market.

     6. Boost your finances

Buying a home is the most crucial time to monitor and improve your finances, such as your credit report. Paying down high interest debts and maintaining your monthly payments will help to improve your credit before applying for a mortgage.

Since we’re talking about goals, it’s highly recommended not to make any major purchases, for example, personal vehicles or furniture, as it may impact your credit.

     7. Calculate how much you can afford

Before buying a home, ask yourself if you’re ready to commit financially. Compute how much you can afford for a down payment and your mortgage payment, taxes and house insurance. This mortgage affordability calculator could help you understand your budget when buying a home.

Also consider other upfront expenses including appraisal, home inspection, land registration, legal or notary fees, possible renovations and moving costs.

     8. Narrow down the list

After determining your financial and real estate goals, you can then start narrowing down your list of dream homes and choose the one that’s within your budget. Make a list of the top priorities and non-negotiable criteria when it comes to your new home. This’ll speed up the house hunting process so you don’t compromise your home search

Final Thoughts

Creating a series of goals when buying a home would help to eliminate fear, doubts and will help you to make the right choice. To help identify your best path forward, talk to a trusted financial professional who could help you with your planning process.

Daisy Raouph offers financial consultations and mortgage guidance that can help with establishing your home buying goals. Daisy’s a mortgage broker and financial security advisor based just outside of the GTA (Greater Toronto Area). Don’t hesitate to consult Daisy today.