3 Signs You May Be Ready to Buy a Home in Hamilton

Knowing that you want to own a home is one thing.

Knowing whether now is the right time is another.

Before you start seriously looking at homes in Hamilton, take a step back and consider these three questions.

1. Do You Have a Down Payment and a Realistic Financial Plan?

Having money saved for a down payment is an important starting point, but it's not the only financial consideration.

You'll also need to think about:

• Closing costs
• Legal fees
• Land transfer tax
• Moving expenses
• Your ongoing housing costs
• Maintenance and repairs
• Your existing debts and other financial commitments
• Having some money left after the purchase

A mortgage pre-approval can help you understand what you may qualify for.

But the maximum a lender is willing to lend isn't necessarily the amount you should spend.

The more important question is whether the overall cost of owning the home fits comfortably into your life.

2. Can You See Yourself Staying in Hamilton for a Meaningful Period of Time?

Buying a home involves transaction costs and a significant commitment.

If you expect to move again very soon because of work, family or lifestyle changes, buying may not fit your circumstances.

That doesn't mean you need to promise yourself you'll stay for exactly five years.

Instead, ask:

“Do I realistically expect this home to work for me for the next several years?”

Think about your career, family, lifestyle and plans.

If you expect significant changes soon, it may be worth taking those into account before buying.

3. Have You Compared the Full Cost of Buying With Your Alternatives?

Don't compare your rent only with a mortgage payment.

Homeownership can also involve property taxes, insurance, maintenance, utilities, condo fees where applicable and the upfront costs of purchasing.

At the same time, renting provides flexibility and shifts many maintenance responsibilities to the landlord.

The question isn't simply:

“Is my mortgage payment lower than my rent?”

It's:

“Does buying make sense for my finances, lifestyle and plans?”

That is a much more useful question.

Buying in Hamilton Isn't About Checking Three Boxes

You don't need to meet some arbitrary formula before you're allowed to consider buying.

Your circumstances are unique.

The purpose of these questions is to help you think through the decision before you get emotionally attached to a particular house.

If your finances are reasonably organized, you expect to stay in the area and you've considered the full costs and responsibilities of ownership, you may be ready to start exploring your options.

And if you're not ready yet, that's useful information too.

Thinking About Buying a Hamilton Home?

You don't have to begin with a list of houses.

Sometimes the better starting point is a conversation about your situation, your priorities and what you're trying to accomplish.

If you're considering buying in Hamilton, I can help you understand the real estate side of the decision and what to think about before you start looking.

Mike McCarthy, MBA
REALTOR®
Mike McCarthy Realty