The idea of buying a new home can be incredibly exhilarating, and it's natural to want to jump right in and start checking out properties. However, I want to tell you that this may not be the best way to start your real estate journey.

The first and foremost thing that every buyer should do is work with a credible lending institution or bank and get pre-qualified for the principal that they can borrow. This is essential because it will help you determine your budget for purchasing a property. It's important to note that your pre-qualification and your budget may be two different numbers, and that's okay.For example, there could be a family which is okay and pre-qualified for a purchase price of $950k, however, based on their comfort and other commitments they don't want to go beyond 850k as their purchase price. So, their budget ceiling in this case becomes $850k. 

Once you've determined your budget ceiling, the next step is to work with a skilled realtor who can advise you based on your family aspirations and goals for the home. They can help you find areas that work well for your property aspirations within your budget ceiling. This approach takes away any surprises from the process and makes it a pleasant experience, putting you in the driver's seat. A good Real Estate broker is like a consultant and it is our job to ensure the clients money is well spent and invested in a credible asset. An asset which gives pride of ownership and at the same time helps built the equity in the asset with growth. 

We understand that it can be tempting to look at properties first and then adjust your budget, but that's not the ideal way to go about it. Freezing your budget first and then reviewing what best can be bought within your budget gives you tremendous control over the cash outflow and takes away any pressure situations in buying a home. This way, when you're shopping for a home, it becomes a pleasant experience and not a stressful one. 

Think of it this way; if you're trying on shirts without checking the size tag, you'll get stressed and frustrated when they don't fit. But if you determine your size first and then pick out shirts in that size, you'll have a better chance of finding something that fits well and feels comfortable. At end of the day this is your biggest asset and you would want to ensure it is a smooth and pleasurable experience start to finish. 

In conclusion, the ideal way to start your real estate journey is to get your financing in order first and then focus on the review process. This will ensure that you have a successful real estate journey without any pressure. So, if you're looking to buy real estate, take that first step and get in touch with a good lender to get your qualification done. If we by pass on the pre-qualification piece, and find a property which we like very much, only to later find out that our qualification is not able to get us that property; or it stretches our affordable limit, it doesn't help us. 

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate and we will do our best to help.


Mudit Mehta 
Broker of Record
ELIXIR REAL ESTATE INC.
Off: 416-816-6001 | [email protected]