Tips for home buyers
Find out what you can afford
This is an important step in the process of buying a home. You do not want to fall in love with a home only to later learn that it is beyond your means. Before meeting with your Financial Institution compile a list of your current debt obligations including any car payment, student loan or credit card payment. This will be a key component along with your annual income in determining the amount of mortgage you can carry.
Get pre-approval and a rate guarantee
Cameron and Angela can provide you with a list of lenders including both Banks, Trust Companies and Mortgage Brokers. We always encourage you to speak with the Financial Institution that you are already doing your everyday banking with. Your financial institution will be looking at your credit rating, and your employment duration when considering you for a mortgage. In the eyes of the Seller, a buyer with a mortgage pre-approval will be viewed much better that a buyer without pre-approval. A rate guarantee protects you in the event that the mortgage interest rates increase before you have purchased your new home. The rate guarantee is offered for a limited time period, usually up to 6 months. Speak to your individual financial provider to learn when your rate guarantee expires.
Do not alter your credit score before completion of sale on your new home
Your Mortgage Lender may reject your loan if you do something to alter your credit score after you have completed your mortgage loan application. Do not make any big ticket purchases on credit and /or with a credit card such as: a new car, furniture, expensive electronic equipment/computers or major appliances.
Know what you want
Angela Nolan can help you determine what your wants and needs are and the best way to achieve these wants and needs. The following are some factors to consider:
- Type of home such as single family, semi-detached, condominium, town home
- Style of home such as bungalow, 2 Storey, split level
- Age of home whether newly constructed, or an old as century home
- Number of Bedrooms
- Number of Bathrooms
- Parking, Garage
- Exterior landscaping, yard, fencing, swimming pool
- Proximity to your work and children's schools
- Amenities such as recreation centres, libraries, churches, parks and pools, etc.
- Neighbourhood crime rate
- Local transportation
Always make your offer conditional on a Home Inspection and Financing
Making a major purchase such as a home is worth investing in the services of a qualified Home Inspector. You want to avoid any unfortunate surprises later that could end up costing you thousands of dollars. Having a condition in your offer for financing is important even if you have a pre-approved mortgage. There are 2 components to the mortgage approval process. One, are you approved for the mortgage necessary to cover the price you have negotiated and two, is the mortgage provider satisfied that the negotiated price is reflective of the home's fair market value.
Obtain a Comparative Market Analysis before making an Offer
Cameron and Angela Nolan always provide their Buyers with the following market information so that our Buyers have an accurate idea of the market value and are able to make an educated buying decision:
- What is the Sales History of the home you are offering on, including Sales, Expiries?
- What has sold on the same street as the home you are buying, in the last 2 years?
- What has sold in the last 6 months in the neighbourhood of this home?
- What is currently available for sale on the market in the neighbourhood of this home?
Use a Real Estate Sales Professional to Negotiate
Cameron and Angela Nolan, as experienced professionals can assist you in determining the best negotiating strategy to obtain the best possible deal for you. We can offer suggestions to increase the likelihood of securing a successful Agreement of Purchase and Sale for your dream home with the most favourable terms.
Buying a home can sometimes be stressful and overwhelming at times. With careful planning, and the help of Cameron and Angela Nolan you can avoid costly mistakes and buy your new home with confidence.