How to prepare for winter house hunting!
Are you looking to buy a home this winter? How should you prepare? For the most part, winter house hunting doesn’t look extremely different from the other seasons. It has its own patterns and characteristics, but the steps you follow are largely the same. If you want to purchase a home this season, here are some tips to consider, both general and winter-specific.
Get your pre-qualification
Your pre-qualification is an important part of buying a home during any season, and not just in the winter. However, it should be one of the first things you do when you start planning your purchasing journey this year. Your pre-qualification is key to securing a mortgage with the least amount of stress and trouble. It provides you with an estimate of how much you might be approved for in mortgage financing, based on your current situation. This means it is not an approval, and it does not guarantee you a mortgage. What it does is tell you where you currently stand, and what you should or shouldn’t do moving forward. If you keep your situation and finances the same, you are more likely to secure your actual approval when the time comes. Getting pre-qualified allows you to better understand your position in the market. It also means your potential lender will already have a lot of your information by the time you apply for a mortgage, which can help speed up the process.
Don’t get caught up on appearances
This is a big point to keep in mind when you’re winter house hunting. Of course curb appeal is important, because you want to ensure a home is in good shape inside and out. However, try not to focus too much on the purely aesthetic aspect of a home’s exterior in the winter. Nothing looks as clean or pretty in the winter as it does in the summer. The skies are grey, the streets are mucky, and everything is covered in snow or slush. This doesn’t do any home any favours! A yard that is usually lush and full of leafy trees and gardens will look a little bleak. Keep this in mind as you pull up to a house. Try to think about how the exterior would look in better weather. You should still check out the property for signs of damage that aren’t a result of the seasons, but don’t judge too harshly based on looks alone.
Secure the right real estate agent
This is another part of purchasing that is essential year-round, but it’s still worth pointing out. A good real estate agent is key to your success in the market. They help you find the right properties, arrange viewings, submit offers, and offer so much guidance along the way.
How do you find the right agent? There are a couple key things to look for when you are searching. Ideally, your agent will be local to the area you are searching in. These agents will know the most about the area and can provide the most information on amenities, transportation, schools, and other services. It is also helpful if your agent has worked with clients in your position before. For example, if you are a first-time buyer, your agent should have experience helping new buyers enter the market. Finally, make sure your agent has great communication skills! The market can be competitive and move quickly, and your agent should be efficient, clear, and reachable. You shouldn’t expect them to be available to you 24/7, but you deserve to work with a professional who is responsive and productive.
Understand the market
Don’t worry, you don’t need to be an expert on the housing market! You have professional guidance to take care of you on that front. Still, it is best to have a general understanding of the market while you’re winter house hunting. Right now, Canadian interest rates are at their highest point in many years, which means mortgage rates are high as well. However, many economists expect rates to start decreasing later in the year, which will bring down mortgage rates too. Buying a home this winter might mean buying when rates are as high as they will be in 2024. It’s important to know this so you can make the right decision on what type of mortgage product you should secure. You should also be aware that the winter season tends to be the slowest for real estate, with fewer buyers and sellers on the market. This gives you an advantage in terms of the lack of competition you might face. On the other hand, it may also mean there are fewer properties that suit your needs. Your real estate agent and your broker will help you navigate these opportunities and challenges.
Let a mortgage broker help
Finally, make sure you include a mortgage broker during your winter house hunting process! As brokers, we understand the importance of securing the right mortgage product. You might crave flexibility, consistency, prepayment privileges, or a number of other items. Your circumstances are unique, so your mortgage product should be as well! Using a broker ensures you are connected to the best lenders who can meet your needs. It also means you have full support throughout the entire mortgage process, and you will continue to have this support even after the sale closes. It doesn’t cost you to use a broker, but it can cost you if you don’t.
Winter house hunting isn’t really that much different from buying a home in any other season. The weather is worse, and the market is slower, but the importance of using a mortgage professional remains the same. If you are thinking about jumping into the market, be sure to reach out to us to get started.
If you have any questions about your mortgage, get in touch!
