So, you're thinking of buying a home?
What do you need to know? The simple answer is quite a bit!
Let’s start with the basics:
Why Hire a Realtor®?
Your Personal Realtor® or Buyer Agent
When you engage the services of your own personal Sales Representative—someone who is under contract to work solely in your best interest—Your personal Realtor® provides:
There is no cost to you to hire a Realtor to work as your agent. Commission fees are including in MLS listings. Most new home builders and for sale by owners will also compensate your agent for facilitating a sale.
Remuneration is always discussed up front and in writing.
Confidential assistance that addresses your needs first.
Honesty, loyalty and diligent care, free from any conflicts of interest.
Access to all listings including MLS, most for sale by owners, bank-owned properties, distress and estate sales, even homes that were previously on the market where the seller might still be interested in selling.
Expert advice on useful clauses such as home inspections and financing to protect you fully.
Expert advice of the offer process, to achieve the best price, terms, conditions and/or a strong competitive offer.
Expert negotiation on your behalf art all times.
Expert advice on market value, inclusions, location, as well as help you decide when you should walk away.
Discovery and disclosure of all information about the property including liens, warranties, disclosures, seller’s purchase price, and market and planning activity in the area.
As your Personal Realtor®, our job is to ensure you are an educated buyer in all aspects of your home buying process.
Getting Pre-Qualified for a Mortgage
ASSESS YOUR FINANCIAL READINESS
Assess your present household budget and your annual income to determine if you are
eligible for a mortgage and how much you can comfortably afford. Consider your Mortgage Options. How much you pay depends on how much you borrow (the principal), the loan’s interest rate, and how long you take to pay it back (the amortization period). Do not be afraid to negotiate interest rates and mortgage terms with different lenders. They are offering you a product and talking to more than one lender helps you make an informed decision.
PRE‑APPROVAL vs PRE-QUALIFIED
Getting pre‑approved for a mortgage before looking at properties gives you a more realistic expectation of what you can afford. However, keep in mind that the pre‑approved amounts can overestimate what you can actually afford to pay. Pre‑approval does not guarantee you will be approved once you actually apply if market conditions, interest rates, or your personal circumstances change. That is why it is best to get pre-qualified with your lender prior to entering the market. Your lender should be asking for financial documents, T4’s and/or recent Notice of Assessments, proof of down payment and others documents.
WHERE CAN YOU GET PRE‑QUALIFIED?
You can get mortgage pre-qualified with a traditional lender, such as a bank or credit union, or by through a mortgage broker who acts as an intermediary between you and the lender. Mortgage brokers negotiate mortgage terms and rates on your behalf, and usually work with dozens of different lenders, including mortgage finance companies. Their fees are paid by the lender when your mortgage is signed.
Costs to Consider When Buying A Home
Knowing how much to budget for will keep your cash flow in check. Below is a helpful list of closing costs and purchase costs you need to consider:
Deposit with offer
Down Payment on closing
Real Estate Lawyer + Disbursements
Building Inspection
Bank Appraisal
Land Transfer Tax
CMHC Loan Insurance
HST on CMHC Insurance
Tarion Warranty Enrollment ( new builds)
Title Insurance
Moving costs
Initial painting or repairs on move in
Want to learn more about the home buying process?
Every Live Love Home Team client receives a copy of our Home Buyer’s Guide. This guide is complete with a step by step timeline on everything you need to know when buying your home.