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Buying a Home: What You Need to Know
I created this site to provide information on the real estate market in
The Greater Toronto Area. There is so much information out there about the real estate market that it can become overwhelming. This site has been designed to be straightforward and easy for you to find the information you need to buy or sell a home.
This "Buying a Home" section contains a lot of helpful hints and information, whether you are a first-time home buyer or looking to scale down into a beautiful condominium.
Friendly Advice for First-Time Buyers
Buying your first home can be a nerve-racking and emotional experience. You may feel as if you are on a rollercoaster while searching for the right property, going through negotiations and escrow. Buying a home is likely to be one of the largest investments you make, and the emotions involved can sometimes cloud your judgment.
A professional agent can help keep you grounded so you are not tempted to spend more than you can afford or jump at the first home you view. Researching the market by viewing at least 7-10 homes is important. This will give you a good overview of the home market and allow you the time and knowledge to make the right decision.
Don't let your emotions push you into making an offer until you are sure that you have found the right home for
you! You don't want to take too long — but there is time to know your market! Become accustomed to the neighborhood and feel comfortable with your decision.
Below are some helpful tips to assist you through the house-hunting process:
Types of Mortgages
Are you wondering which mortgage is best for you? The answer depends on your specific needs and income projections. There are so many types of loans and various term lengths, that making the correct decision will take time and research. Discussing these matters with a professional loan broker is very important. Here are some crucial factors to consider:
What is your income at the present, and what are your future income expectations?
How much cash do you have available for a down payment?
How long do you plan on staying in this home?
How much risk are you willing to accept?
Find out the interest rate that the lender will commit to and for how long. Get any commitments in writing.
Points and Fees
This is a very important factor and may vary depending on the lending institutions. Look out for any hidden fees. Request in writing from the lender all fees and what is included and what is not.
Review the inspection report carefully.
Be sure to list all possible expenses, utilities, and property taxes, insurance, home maintenance.
Make sure all utilities are on during your walkthrough (gas, electric and water) so you can inspect everything. Make sure your agent is present during the walkthrough.
Home Inspection and Appraisal
Having a home inspected before buying is essential to protect you. Sellers may try to cover up major problems in the house. So it is in your best interest to get a good inspection.
A reputable inspector will never offer to perform needed repairs and should not refer you to a contractor for these repairs.
The cost of inspection varies with the area. It may start from $200 and go up to $400 or more.
A written report will be given to you within two days. Keep this report and go over it with your agent. There may be items that need to be taken care of by the seller. Also review this report with your contractor. Be sure to have your agent present during the final walkthrough and have the inspection report with you. Make sure the seller has made all necessary repairs that they are responsible for. Ask for any warranty papers on new appliances.
Your Mortgage: The Pre-loan Approval Process
Advice from the Experts, Pitfalls to Avoid
One of the most important steps in the process of purchasing a home is your credit. Your credit score and past history play a very important role in getting pre-qualified and finally pre-approved for a mortgage. A stronger credit score shows lenders that you have a good payment history whether on a past mortgage, credit cards, car payment or any other outstanding loan. In addition, lenders offer better rates to those with higher credit scores.
Your credit score and past history is maintained in your credit report. The
two major credit bureaus are Equifax and Transunion. Contact these bureaus and have a copy of your credit report sent to you. If you need to repair your credit there are legitimate companies that specialize in this area.
Tips to Having a High Credit Score
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Pay your bills on time. If you pay past the deadline this is immediately reported to the credit bureaus and your score goes down.
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Think ahead if you are planning on purchasing a home review your credit 2-3 months prior to applying for a mortgage. This will give you time to correct errors on your report.
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Maintain small balances on your credit cards. Hint!! don't have more that 40% of your credit limit as a balance at any time.
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Do you receive offers in the mail? Credit card companies or other vendors offering you low rates? Before they will give you a credit card they will check your credit. Every time this occurs it is a mark against you.
The process of securing a home loan can sometimes seem daunting and confusing, I can help. Please contact me and I will assist you through the necessary steps and remove your concerns.
Call Anna Tulman at 416.909.2662 today!
Anna speaks English, Hebrew, and Russian. |
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