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Working with an agent
Let
your real estate agent do the searching for you. The best buys aren't
in the newspaper ads; most great opportunities are on "hot sheets" that
are available every morning to salespeople with access to MLS
information.
An agent's job is to:
- Provide information on the property and the area
- Negotiate a price and terms that are agreeable to both buyer and seller
- Help arrange a source of financing
As
a homebuyer, you must work with your agent to find the home that's
right for you. Communication is key - tell your agent what you want,
and be specific.
- Offer a detailed description of your
property needs and wants. If you will absolutely not consider a house
without a hardwood floor, say so. And if air conditioning is a "nice to have" rather than a "must have," communicate that, too.
- Be
specific about where you want to live. If you refuse to live outside a
certain area, it might take longer to find you a home, but your agent
will know not to waste your time with anything not in your chosen
neighbourhood.
- Tell your agent what you can afford. He
or she can help you get a pre-approved mortgage so you know for sure
what your price range will be.
- Communicate your likes and dislikes for each property you see. It will help your agent narrow down the possibilities.
- Commit to one salesperson.
- Respect and perform the terms of the purchase agreement.
- Keep
an open mind. Agents know about those charming little areas that you've
never even heard of. You might find your dream home in a completely
unexpected place.
Qualifying for a mortgage
Your
Royal LePage agent can arrange to have you pre-qualified for a mortgage
before you start shopping for a home. It's easy, and you'll avoid
possible disappointments down the road if you fall in love with a
place, then find out you can't afford it. Plus, once you do find the
perfect home, it will mean you can make an offer immediately.
Here's
how mortgage approval works: the amount of money you qualify for, plus
the amount of cash you can put down equals the amount you can afford to
spend on a home. Most lending institutions won't allow more than about
30% of your income to support a mortgage. If you have other debts, they
usually won't allow your debts and your mortgage to exceed 40% of your
income.
Finalizing your mortgage
Once
you've found the home you want to buy, you'll need to finalize your
financing. You'll need to provide your lender with the following
documents:
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.
4. If you have a pre-approved mortgage, it's a simple matter of finalizing a few details with your mortgage specialist.
Choosing a neighbourhood
You're
not just buying a home - you're buying a location. And even the most
perfect house won't feel right if you're in the wrong neighbourhood.
Educate yourself about the area so you'll choose wisely - and end up
being happy with your decision.
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Are you close to shopping and recreation? Being close to stores, parks, recreational facilities, a post office and dry cleaners will save you time.
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Do people in the area take care of their homes?
Explore the neighbourhood, keeping an eye out for signs of neglect
(overgrown lawns, houses in need of paint, trash and junked appliances
littering yards). A run-down neighbourhood can drive down your property
value.
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Are there schools nearby?
If you have children, the proximity and quality of schools is key. Some
schools will provide data (i.e. average test scores) that can determine
quality. Talking to neighbours with children can be helpful, too.
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Is there good access to transportation? Living near public transport and/or major highways can mean an easier commute to work.
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Is it safe? Check with the local police department - they may be able to provide statistics about break-ins or other crimes.
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Will the home increase in value over time?
Homes in some neighbourhoods appreciate faster than others. Research
the selling prices of homes in over the past decade or so to predict
future trends. Your agent may be able to provide helpful data.
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Is it quiet?
Listen for traffic noise, barking dogs, airplanes and any other noises
that might bother you. Return to the neighbourhood at different times
of the day to get an accurate impression.
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