Other costs may
include landscaping, redecorating,
furnishings, appliances and repairs.
Typical monthly costs incurred with
home ownership are mortgage payments,
maintenance, insurance, condo fees,
property taxes and utilities.
Obtain
a Pre-Approved Mortgage
Having a pre-approved mortgage will
give you the confidence of knowing
exactly what you can spend on a
home before you start looking. You
will also be protected against interest
rate increases while you look for
your new home. Your Mortgage Specialist
will answer your questions and help
you determine which financing terms
and options are right for you. Your
Mortgage Specialist and Real Estate
Professional work as a team to help
you find the right home and select
the best financing.
Finalizing
Your Mortgage
Once you've found the home you want
to purchase, there are some documents
you'll probably be asked for in
order to finalize your financing.
They will include:
1. A copy of the
real estate listing of the property.
If the home is still to be built,
the mortgage lender will need to
see the architect's or builder's
plans and details on lot size and
location.
2. A copy of the
offer to purchase or the building
contract, if this document has been
prepared.
3. Documents to
confirm employment, income and source
of pre-approval.
If you have a pre-approved
mortgage, it's a simple matter of
finalizing a few details which your
Mortgage Specialist will explain
to you.
Choosing
a Neighborhood
It is important that the neighborhood
you choose to live in is well suited
to you and your family. The following
is a list of considerations and
possible problem areas.
Environment
- The quality of air, water and
soil is a top concern as a polluted
neighborhood can be detrimental
to both your health and property
value. Ask your real estate salesperson,
neighbors and local media about
any known environmental issues in
the area.
Appearance
- The home you are considering may
be tidy and attractive inside and
out, but how does it compare to
the surrounding area? Explore the
neighborhood, keeping an eye open
for signs of neglect (overgrown
lawns, houses in need of paint,
trash and junked appliances littering
yards). No matter how diligent you
are in the upkeep of your property,
a run-down neighborhood can drive
your property value down.
Crime rate
- Check with the local police department
to find out if the home you are
considering is in a safe neighborhood.
Police may be able to provide statistics
regarding break-ins and other crimes.
Schools
- If you have children, the proximity
and quality of schools is an important
consideration. Talking to neighbors
with school age children can be
helpful. In some areas schools will
provide data (such as average test
scores) that can aid you in determining
a school's quality.
Transportation
- Convenient access to public transportation
and/or major highways can mean the
difference between a pleasurable
and not-so-pleasurable commute to
work.
Amenities
- Amenities like a grocery store,
parks, recreational facilities,
post office, dry cleaner and a doctor's
office can make life easier if they
are located nearby.
Property
Values - By researching
the selling prices of homes in over
the past decade or so, you may be
able to predict future trends. Your
real estate salesperson may be able
to provide helpful data.
Utilities
- Avoid unpleasant surprises by
finding out what utility costs are
before you decide to purchase. Fees
for water, electric, cable TV, phone
and gas vary greatly by region.
Noise and
Nuisances - It can be hard
to get an accurate impression of
a neighborhood in just one visit.
Be sure to return to the neighborhood
at different times of the day and
night. Listen for traffic noise,
barking dogs, low-flying airplanes
and any other noises that could
bother you as a resident.
The
Major Elements of an Offer
Price - Depends
on the market and the buyers, but
generally, the price offered is
different from the asking price.
Deposit
- The deposit shows the buyer's
good faith and will be applied against
the purchase price of the home when
the sale closes. Your Royal LePage
Real Estate Professional can advise
you on the suitability of the amount
of the deposit being offered.
Terms
- Includes the total price the buyer
is offering as well as the financing
details. The buyer may be arranging
his/her own financing or may ask
to assume your existing mortgage
if you have an attractive rate.
Conditions
- These might include "subject
to home inspection", "subject
to the buyer obtaining financing",
or "subject to the sale of
the purchaser's property."
Inclusions
& Exclusions - These
might include appliances and certain
fixtures or decorative items, such
as window coverings or mirrors.
Closing or Posession Date - Generally,
the day the title of the property
is transferred to the buyer and
funds are received by the seller,
unless otherwise specified (except
in Manitoba and Quebec).
How
to Make an Offer
When it comes time to make an offer,
your Royal LePage Real Estate Professional
can provide current market information
and will assist you in drafting
your offer. Your Royal LePage Real
Estate Professional will communicate
the offer, sometimes known as an
Offer to Purchase* to the seller,
or the seller's representative,
on your behalf. Sometimes there
may be more than one offer on a
property coming in at the same time.
Your Royal LePage Real Estate Professional
can guide you through this process.
*Offer to Purchase: a legal document
which specifies the terms and conditions
of your offer to purchase the home.
The offer can be firm or conditional.
Firm Offer to Purchase: usually
preferable to the seller, because
it means that you are prepared to
purchase the home without any conditions.
If the offer is accepted, the home
is yours. Conditional Offer to Purchase:
means that you have placed one or
more conditions on the purchase,
such as "subject to home inspection",
"subject to financing"
or "subject to sale of buyer's
existing home". The home is
not sold until all the conditions
have been met. *In the province
of Quebec, this is referred to as
a "Promise to Purchase".
Acceptance
of the Offer
Your Offer to Purchase will be presented
as soon as possible. The seller
may accept the offer, reject it,
or submit a counter-offer. The counter-offer
may be in reference to the price,
the closing date, or any number
of variables. The offers can go
back and forth until both parties
have agreed or one of you ends the
negotiations.
Hire
a Legal Professional
A legal professional is there to
represent your interests and to
process the legal documentation
required. Your Royal LePage Real
Estate Professional can provide
you with the names of legal professionals
who specialize in real estate. The
legal process differs from province
to province. Your Royal LePage Real
Estate Professional or legal professional
will advise you on the steps to
be taken before the keys to your
new home are presented to you.
Have
the Home Inspected
Buying a home is one of the most
important investment decisions you
will make in your lifetime. As such,
it makes sound financial sense to
enlist the services of a qualified
home inspection company to ensure
your home is as solid and secure
on the inside as it is on the outside.
A home inspection will determine
the structural and mechanical soundness
of your home. Your home inspector
will identify existing and potential
problem areas, suggest practical
low-cost solutions, and provide
estimates regarding costs for any
work required. Shortly after the
inspection has taken place, a report
summarizing the findings is generally
provided to the potential purchaser.
By commissioning a home inspection
prior to purchase, you're protecting
both yourself and your investment,
as well as buying a little peace-of-mind.
Home inspection costs often range
according to size, age, and location
of the home. Your Royal LePage sales
representative can recommend a reputable
home inspection service or arrange
for a home inspector to visit your
property.
Closing
the Deal
Closing day is the day you become
the official owner of your home.
However, the closing process usually
takes a few days.
Typically, you
visit your lawyer's office to review
and sign documents relating to the
mortgage, the property you are buying,
the ownership of the property and
the conditions of the purchase.
Your lawyer will also ask you to
bring a certified cheque to cover
the closing costs and any other
outstanding costs. Once your mortgage
and the deed for the property are
officially recorded, you become
the official owner of the property
and your lawyer will call you to
pick up the keys to your new home.
Congratulations! You've just bought
a home!
