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The
First-Time Buyer's Guide: |
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This
task of buying your first house is a daunting challenge isn't it?
Realtors,
mortgages, lawyers, home inspectors, Title Insurance, warranty
programs, movers. Who knows where to start?
I
do, and I'm here to help you get started! |
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Financing:
A
visit to the mortgage person at the bank where your paycheque is
deposited is a good first step .
You
can get a second quote from another lender to see if you can
negotiate a better deal. You can also consult a Mortgage Broker, a
type of middle-man who shops your loan around to different lenders to
get you the best deal.
Your
main objective at this point is to find out what you can afford to
buy and what you will need to budget for monthly payments.
The
lenders consider your monthly income and the amount that you have to
put down. You can buy with as little as 5% of the house's value put
up as a downpayment. You might qualify for no-money down financing
depending on your income and past credit history.
See
Which documents do I need to get a mortgage. |
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Location:
Once
you have established your maximum price, you can look at what that
amount of money buys in different areas. Can you afford downtown
Toronto or can you only afford to buy in Keswick? The internet is a
good place to start looking, from the comfort of your own home. The MLS.ca
website lets you search by district and price range. Be aware that it
does not include every property that is for sale on the real MLS
systme though.
Keswick
might not be practical if you work in downtown Toronto. Looking at
the map and the prices, it's important to decide which areas are
workable for you.
Housing
Needs:
What
type of house is practical for you? If you have bad knees you can't
function in a 2-story. If you're a young party animal and don't use
the yard, a townhouse might be the best choice for you. If
maintenance is a nightmare for you, a condo townhouse or condo
apartment could be perfect for you.
Neighbourhoods:
Within
those areas that you've marked out on the map, which neighbourhoods
appeal to you?
Some
areas look good but have high crime rates, or poor schools. Make
calls to find answers if those are issues that are important to you.
People
expect Realtors to know that stuff, but we really don't. What might
be a good feature in a school for me, or another buyer, might be a
bad feature for you.
Only
you know what's good or bad for you, and you are the best person to
be asking the questions. Narrow it down to smaller areas that are
acceptable to you.
Tastes:
What
types of houses appeal to you and your significant other? It's the
house you have to wake up in every morning, and drive home to every
evening. It should make you happy. For some people it's an English
country cottage, for others it's a big family home, and for others
it's a modern architectural marvel. What turns you on?
A
good way to find out is to tour new-home builder sites and resale open-houses |
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Finding
a Realtor:
The
open-house weekend tours are a good way to find a Realtor that you
feel comfortable being with and that is knowledgeable enough that you
want to deal with them.
Take
their cards, thank them very much, but don't give the your name or
phone number. Let that be YOUR choice when the time comes. You can
also ask friends who they recommend,, or you can just contact
me. Meet your chosen Realtor in their office for a preliminary
visit to see if you get along.
Short-Listing:
Once
you know your price range, area, housing style, and tastes, it time
to start the search process with your Realtor (Me I hope!) Your data
will be plugged into the detailed MLS database available only to
Realtors. You can participate in that computer search, and develop a
short-list of properties that interest you.
Viewing:
Don't
underestimate how difficult it is to look at houses. Most people are
exhausted after seeing 3 houses. You're brain will be running at 100%
capacity, absorbing details and looking for problems. Plan on seeing
12-16 houses before you're ready to make an offer.
The Offer:
You'll
know when you've found the right house. It will talk to you. The
process of putting together an offer takes a few hours of your
time,after your Realtor has spent a few house alone putting it
together. Be prepared to be involved in the offer and what you are
agreeing to. But relax. The forms are standard across Ontario and are
made up to protect you, the buyer.
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The Conditions:
You
will have to do some footwork after your offer is accepted. The
conditions are there to protect YOU and waiving them is the most
stressful part of the buying process for many people.
You
will have to communicate with the people at the bank again. Your
Realtor will send them a copy of the listing and a copy of your
offer. You might have to have a face to face meeting with them at the bank.
You
will also likely have a Home Inspector go through your house looking
for problems. I highly recommend that you be there with him, as he
inspects the house and land, and to receive his Report. It is a great
opportunity to learn how to maintain your new home.
The Lawyer:
Your
Realtor can give you a list of Lawyers that their other clients have
dealt with and can recommend. You can also ask your friends for their
recommendations. Usually it takes only a courtesy phone-call to
establish a contact with the Lawyer's office. Before the keys change
hands you will meet the Lawyer at their office though.
The Move:
Your
Realtor can recommend movers as well. I give my clients a schedule
that breaks down the tasks they need to complete every day, from the
final deal until the keys change hands. Call me now ,and get
on the Fast-Track!
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Real
Estate is my life, but it's just another chore after work for you,
and I understand that.
I
lead the buyers on my No-Mystery
HomeBuyers System through the whole process, taking the mystery
out of it.
As
a Buyer-client, from the time you start looking until the time you
get the keys, I'll be advising you about where you are in the
process, about what everything means, and about the next step that
you need to take.
During
that whole process, as your "agent" I am bound by a Code
of Ethics to always do what is best for you, not what is best for me
or for anyone else.
If
you want to work with an ethical, honest Realtor who understands his
professional obligations to you, who puts your interests first, and
who uses his wide knowledge base to help you achieve your goals,
contact me now. It's time to get on the Fast-Track! |
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