There are many types of buyers:
First time home buyers: First thing you should ask yourself is “How much I can afford?” This should include all the closing costs and moving costs. Your affordability depends on your income and expense ratios. A mortgage advisor can guide on this topic. A mortgage pre approval is the best idea in this case since you are secure before going ahead with your Dream property.
Buying a bigger house: Buying a bigger house is viable for people as their family grows or they are willing to move. Once again the first question to ask yourself is “How much I can afford?’ and a mortgage pre-approval is first step. Equity from previous home will help you easily afford a bigger house.
Buying an Investment property: Most of the people tend to buy an Investment property when they have accumulated enough Equity in their homes. This lets them get a Home Equity Loan to use that money towards an investment property. As property prices go up every year, this gives a better chance to get a good Return on your Investment.
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