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Purchasing a new home is one of the biggest financial decisions you will make in your lifetime. But there are a number of things that should be considered before you take the plunge and make a purchase that you may be potentially paying off for up to three decades. First consider your financial position and calculate the maximum home price that you can afford. Compare your current monthly expenditures to what you would be spending to buy and maintain a new home. Do you have substantial savings available to use as a down payment? If not, it may be wise to hold off until you have accumulated at least 10% of what you hope to spend on your new home. Obtain a copy of your credit report and verify that everything is correct. If you have bad credit or lack of credit it may be worth your time to hold off the purchase of your new home until you have had time to build or rebuild it. If not, we can always arrange financing for you anyway, but it may be at a slightly higher rate. When considering your financial situation you need to take into account the upfront costs of purchasing a home including deposits, registration fees, home inspection fees, property insurance, mortgage insurance, down payments, and legal fees. Also consider additional costs that will not be included in your mortgage such as appliances, service hook-up fees, condo fees, window treatments, gardening and outdoor equipment and any decorating materials you may require. Consider the type of home you want. The size, the layout and what amenities are must-haves and what are luxuries. This will make a big difference in the price range you are considering. A search on MLS will provide you with a good indication of the type of homes for sale in your price range. Once you have considered all of the above factors and have decided that you are ready for a home of your own your first step should be to see a mortgage broker or lender to be pre-approved for the amount that you can comfortably afford. After you have been pre-approved a real estate agent can line up a number of homes for you to view that fall within your price range. When you have found the home you want, the agent will write up an offer of purchase and negotiate on your behalf with the sellers to obtain the best deal possible on the home including price, possession date and other terms. At this time it is advisable to have a home inspection done to ensure that there are no surprises awaiting you in your new home. The home inspector will evaluate the foundation, windows, doors, walls, exterior etc to make sure that everything is functioning as it should and is safe. Another step in the process is to secure financing for your new home through the lending institution itself or by using a mortgage broker who will ensure you receive the best rates available at the time. As soon as your conditions are removed you will need a lawyer to protect you against liens and handle the transfer of funds and titles. A few days prior to possession, you will meet with your lawyer to sign documents for the mortgage and transfer of title as well as provide a certified cheque for the balance of the purchase price and lawyers fees and disbursements. At this time you will also be required to provide proof of insurance. An insurance broker can help you find the best rates available. On closing day you will receive the keys to your new home and take legal possession of it. Your lawyer will have registered the home in your name, paid the vendor and given you the title to your new property. |
  For more expert advice and insight, contact Cheryl King online or call |