Home-Buying FAQs Every Buyer Should Understand Before House Hunting

🏡 Home-Buying FAQs Every Buyer Should Understand Before House Hunting

Buying a home often starts online. You scroll listings, run a few calculators, and quickly form a price range in your head. The problem is that those early numbers are often optimistic. Many buyers don’t realize they’re shopping above their real budget until they’re already emotionally invested.

The questions below come up constantly with Saskatchewan buyers. Getting clear on them early, especially around financing, helps you set realistic limits and avoid painful surprises later.

💰 How much do I need for a down payment in Saskatchewan?

You don’t need 20 percent down to buy a home, but putting less than that affects your monthly costs.

Here’s how it works in Canada:

• Minimum down payment is 5 percent on the first $500,000 of the purchase price

• Any amount above $500,000 requires 10 percent down

• Less than 20 percent down means mortgage default insurance is required

• Homes priced at $1.5 million or higher require a minimum of 20 percent down, no exceptions

Why this matters locally:
In Saskatoon and many Saskatchewan markets, lower overall price points can make qualifying for a mortgage more achievable in general. However, choosing a smaller down payment still increases your loan amount and monthly payment compared to putting more money down. The accessibility is helpful, but it comes with higher ongoing costs.

What buyers often miss:
Mortgage insurance isn’t paid upfront. It’s added to your mortgage, and you pay interest on it over time.

💡 What’s the difference between being pre-qualified and pre-approved?

This is one of the most misunderstood parts of buying a home, and it directly affects how confidently you can shop.

Pre-qualification:

• Based on information you self-report

• No documents verified

• Very rough estimate

Pre-approval:

• Income, credit, and debts are reviewed

• Often includes a rate hold for a set period

• Based on what a lender is actually willing to lend

Why pre-approval matters:
Without a true pre-approval, buyers often shop using online calculators or guesswork. That’s how people end up falling in love with homes they can’t realistically afford.

A pre-approval does more than strengthen an offer. It creates a real spending limit so you:

• Don’t shop $50,000 to $100,000 above your actual approval

• Avoid last-minute financing issues

• Stay focused on homes that fit your monthly comfort level

Important caveat:
Pre-approval is not a guarantee. The property still has to appraise, and the lender must be satisfied with its condition.

📊 How much should I budget beyond the purchase price?

The purchase price is only part of the cost of buying a home.

Typical additional expenses include:

• Legal fees

• Title insurance

• Property tax adjustments

• Home inspection

• Moving costs

A common rule of thumb is budgeting 1.5 to 3 percent of the purchase price for closing costs.

Saskatchewan advantage:
There is no land transfer tax here, which keeps closing costs lower than in provinces like Ontario or BC.

What catches buyers off guard:
Lenders require proof that you can cover these costs. Even if your down payment is ready, closing costs still need to be available in cash.

✅ Do I need a home inspection?

Home inspections aren’t legally required, but they are strongly recommended in most situations.

Inspections are especially valuable for:

• Older homes

• Estate sales

• Former rental properties

Common Prairie issues inspectors look for:

• Foundation movement

• Grading and drainage problems

• Aging furnaces or electrical systems

An inspection doesn’t guarantee a perfect house. It does help you understand what you’re taking on before you commit.

⏱️ How long does the buying process take?

Most Saskatchewan purchases close within 30 to 60 days from an accepted offer.

Typical steps include:

• Offer acceptance

• Conditions period, often 5 to 10 business days

• Financing, inspection, and legal work

• Possession on the agreed date

Longer possession periods are common and often flexible here, which can make planning a bit easier than in larger cities.

One important warning:
Avoid major financial changes before closing. New debt, job changes, or large purchases can delay or derail financing.

💬 What credit score do I need to buy a home?

You don’t need perfect credit, but stronger credit gives you more options.

General guidelines:

• Around 680 and above opens up stronger conventional options

• Scores in the low to mid 600s may still qualify with insured mortgages

Lenders also look closely at income stability, debt levels, and employment history.

Local note:
Saskatchewan credit unions and local lenders can sometimes be more flexible than national banks, especially with strong income or long-term employment.

🏠 Should I buy now or wait?

There’s no universal right time. The better question is whether you’re personally ready.

Things that matter more than timing the market include:

• Job stability

• How long you plan to stay in the home

• Whether the monthly payment fits comfortably into your life

Saskatchewan markets tend to be less volatile than other major cities, but waiting for “perfect” conditions often costs more than people expect.

🎉 Buying a home is easier when you set clear limits early

Most buyer stress doesn’t come from the market. It comes from unclear budgets, rushed decisions, and learning the rules halfway through the process. Getting properly pre-approved early gives you a realistic price range and keeps your search focused on homes that actually fit your life.

If you’re thinking about buying in Saskatoon or anywhere in Saskatchewan, I’m happy to walk through these questions with you and help you plan before the pressure starts.

📞 Call or text me at (639) 295-4696
📧 tanner@twrealestate.ca
🌐 twrealestate.ca

Clear expectations and good preparation make the buying process smoother, more predictable, and far less stressful from day one.