Valuable Tips For First Time Home Buyers
Thursday Nov 17th, 2016Share
It is absolutely critical for a first time home buyer to find out how much mortgage they can afford, Consult with a mortgage broker and obtain a letter of pre-approval. Try to lock-in the interest rate for a period of time while shopping for a house. Keep in mind, mortgage approval will still be subject to an appraisal of the property by the financial institution. I can recommend a few mortgage brokers frequently used by my clients please call 416-428- 8311 for more details. Don’t forget to work with the lender to find out the right type of mortgage that suits your needs, whether it is an open mortgage or closed mortgage, a mortgage broker should perform a needs-analysis assessment and determine what is right for you.
Make a wish list
Once you determined how much you can afford and obtained a pre-approval from a financial institution or a bank, then you should determine your wants and needs. Develop a predetermined shopping list about features you are willing to compromise and the one you don’t. The decision between a condo and house, detached or semi-detached of course depends on your lifestyle and budget.
The Down payment:
Depending on your current financial situation and savings, you should find out how much down payment you can afford. A conventional mortgage down payment is 20 percent of the purchase price. There are mortgage options that can offer you a Zero down payment.
Check the school District:
Good Schools have a tremendous effect in Home prices. Be sure to check the boundaries for local schools once you found a home you like. Find out more about schools here
It is important for a home buyer to understand the physical condition of a home before committing to a firm offer. The importance of a home inspection cannot be over-emphasized. If the seller offers their own pre-sale home inspection, make sure their home inspector will provide you with a letter of transmittal and you are covered by the inspector’s professional liability insurance. Home inspection cost anywhere from $400 and up or $200 and up to review the Seller’s report with their home inspector.
Is the basement apartment unit legal?
The Likelihood of renting out the basement unit can be a strong selling point, not mentioning the income will help with the mortgage payment. Therefore it is important to ensure all approvals have been received and it meets fire and building code. For more information click here.
Find out exactly what is included and what is not
It is important to understand exactly what is included and what is not in the sale when making an offer on a property. Chattels such as appliances and drapes if any are usually mentioned in the listing descriptions. But what abut the light fixture in the kitchen? Make sure you spell everything out in the offer.
Making an offer
A good real estate agent will also be an experienced negotiator, with an understanding of the situation and find out how flexible a certain seller will be. In many cases, a deposit is made and you may be advised to sign a “conditional offer”. In any real estate transaction when buyers and sellers strike a deal, loose ends often need tidying up before the buyer will proceed, such as removing the conditions, selling your existing property etc.
The closing costs for a first time home buyers are often an unwelcome surprise. In addition to the purchase price, the first time buyer will face a long list of expenses before taking possession of their new home. Usually, the closing costs are about 1.5 to 2 percent of the purchase price. Here is list of closing cost items
- Land transfer tax (Check out calculator)
- Insurance for high –ratio mortgage (0.5% to 2.75%) if your down payment is less than 20 %
- Survey ($1500 and up)
- Legal fees ($800 and up + Disbursements)
- Title insurance ($350 and up depending on the value of the home)
- Adjustments and prepaid property taxes or utility bills
- Moving costs(1500 and up) depending on whether s professional mover is used or just renting a truck.
Seek professional Help
All the above tasks may sounds daunting to a first time home buyer, but not to a professional realtor. I do this every day, I helped solved real estate dilemma for many people. I can provide you with referrals to trusted legal and mortgage advisors, as well as a long list of service providers including cleaners, trades people and moving companies.
Please be advised that the online listing can be 2 or 3 days old before the information appear for public to view. I can include your information on automatic email alerts for listings. You will be the first to find out about new listings. At my brokerage, we have an extensive network of contacts and in-depth knowledge of the market. Often we know about properties coming on the market before they appear on MLS. Put us to work on your behalf, there is no cost to you, Partner with a trustworthy realtor. It will be my pleasure to help you with your real estate needs.
For more information and to arrange a one on one meeting Please click here