Many people are involved in the home buying process. These professionals have based their careers on helping you find and purchase the home of your dreams. But do you really know just what they do for you?
1. Real Estate Consultant
The first person that you’ll probably become involved with when you begin your search for a home is the Real Estate Consultant. This term includes real estate agents, sales persons, brokers, Realtors, Listing agents, and Buyer’s agents, all of whom must be licensed to serve you. The agents and salespersons work for a broker. Those licensed to sell may represent either buyers or sellers. However, the listing agents typically represent only sellers and buyer’s agents
represent only the buyers – so as to avoid potential conflicts of interest. Only those that are members of the Canadian Real Estate Association (CREA) may use the designation “Realtor”.
2. Mortgage Broker
The person that you work with to get your loan is called a mortgage broker, consultant or mortgage planner. The job of the lender is to take your application for a loan, and verify your income, employment and credit history and find a lender who offers the right mortgage product to suit your needs.
3. Solicitor
There are usually two Solicitors/Lawyers involved in the purchase of a home, one for the seller, one for you the buyer. The role of your solicitor is to make sure that you avoid any pitfalls in your purchase contract. They also examine the title, insure the title, and issues a title report – verifying that you can become the rightful owner of the property.
4. Appraiser
The Appraiser, who is usually certified, is frequently involved after you purchase your home to verify that you paid a reasonable price. They examine the appearance, condition, size, and quality of the home – then estimate the home’s value based on other sales in the neighbourhood or area.
5. Home Inspector
The Home Inspector checks the working condition of electrical, mechanical, structural, and plumbing systems in the home. In Canada, there are currently no regulating bodies for home inspectors, so choose yours carefully, and ask your real estate consultant who they would recommend. Generally, an inspection lasts about three hours. It will focus on determining potentially large expenses and safety-related concerns. Most inspectors don't mind at all if you tag along. In fact, this is a great opportunity to learn about any major problems first-hand and to find out ways to keep your future property in good condition. It’s an excellent opportunity to learn and ask questions about the house.
Wednesday, January 14, 2009
Thursday, January 8, 2009
Four Important Questions To Ask Your Mortgage Lender Before You Sign Any Of Their Documents...
1. Do you have a variety of loan programs to fit my cash flow and expected length of ownership needs?
If you are going to live in your new home for less than five years, you may want to consider a variable rate mortgage or “VRM.” With a VRM, your payments will be lower, but they will go up according to the Prime rate charged by the bank. Most people aren’t aware that with a 25-year mortgage they’ll be paying approximately 2.5 times the total amount of the mortgage in payments. A mortgage planner like the team at Tridac Mortgages can help you develop strategies that can help you payoff your mortgage in approximately half the time saving you $1000s in interest.
2. Do you offer written mortgage pre- approvals, not just pre-qualifications?
A “pre-qualification” is usually a lender’s opinion of your eligibility for a mortgage. If you ask to be pre-approved, the lender will actually submit your job and credit history to an underwriter and get a conditional approval for a loan and a loan commitment. The advantage of having a pre-approval is that it will make your offer to buy a home stronger and it will usually allow you to close the deal faster.
3. Do you have the ability to handle difficult credit history?
Many lenders will only work with you if you have perfect credit, and if a problem comes up, they won’t help you. Lenders look at your credit history to figure out how much they will lend you and how much they will charge you to lend it. Before you make an offer on a home, make sure your lender has reviewed and received approval for you and your specific credit history.
4. Is the rate that you quoted me the rate I will get at closing?
Many lenders advertise their rates in the paper and in homes magazines. These are what are called “Teaser Rates” in the industry. The name says it all. After they’ve got you committed to using them, many lenders then tell you what the “real” rate will be. By this time, it’s too late for you to do anything about it.
If you are going to live in your new home for less than five years, you may want to consider a variable rate mortgage or “VRM.” With a VRM, your payments will be lower, but they will go up according to the Prime rate charged by the bank. Most people aren’t aware that with a 25-year mortgage they’ll be paying approximately 2.5 times the total amount of the mortgage in payments. A mortgage planner like the team at Tridac Mortgages can help you develop strategies that can help you payoff your mortgage in approximately half the time saving you $1000s in interest.
2. Do you offer written mortgage pre- approvals, not just pre-qualifications?
A “pre-qualification” is usually a lender’s opinion of your eligibility for a mortgage. If you ask to be pre-approved, the lender will actually submit your job and credit history to an underwriter and get a conditional approval for a loan and a loan commitment. The advantage of having a pre-approval is that it will make your offer to buy a home stronger and it will usually allow you to close the deal faster.
3. Do you have the ability to handle difficult credit history?
Many lenders will only work with you if you have perfect credit, and if a problem comes up, they won’t help you. Lenders look at your credit history to figure out how much they will lend you and how much they will charge you to lend it. Before you make an offer on a home, make sure your lender has reviewed and received approval for you and your specific credit history.
4. Is the rate that you quoted me the rate I will get at closing?
Many lenders advertise their rates in the paper and in homes magazines. These are what are called “Teaser Rates” in the industry. The name says it all. After they’ve got you committed to using them, many lenders then tell you what the “real” rate will be. By this time, it’s too late for you to do anything about it.
Wednesday, January 7, 2009
5 Simple Things You Need To Know To Make The Home Buying Process Easier
In reality, there are only 5 things you need to know and to do to make your home buying experience as simple as possible.
1. Get pre-approved for your Mortgage
If possible, get “pre- approved” for a loan in the amount you’re willing to borrow.
With this pre-approval, you are in a stronger position to buy a home when you’re ready – rather than finding your dream home, only to lose it to another buyer, because you were waiting on the approval.
2. Find a great real estate consultant.
Once you’ve decided to buy a home, find a great real estate consultant. What you’re looking for is a Buyer’s Agent. This means that the consultant represents YOU as the buyer, rather than the person selling the home.
They will have YOUR best interests at heart. Really good consultants know their markets, and will help you find the best match for your needs and wants. They can also recommend mortgage brokers with whom they’ve worked in the past.
3. Look before you leap.
Drive around the neighbourhood at different times of day. Get out and walk around and chat with neighbours. Some people like friendly neighbours, others think of them as nosy.
Drive to the local grocery store, laundry, and anywhere else that you frequent.
Visit nearby schools and see for yourself how the kids behave and how the grounds look. The point is to see if this is really the type of neighbourhood you want to live in BEFORE you make an offer.
4. Be prepared.
Make sure your contract has reasonable contingencies included to protect you as a buyer. Reasonable can be things like -- approval by a home inspector and a lawyer reviewing your contract. For the long-term investment, make sure that you buy homeowner’s insurance, and upgrade it as the value of your new home and its contents increase.
5. Be reasonable.
No home will be without flaws. Many times it’s these flaws that lend character to older homes, but nonetheless, it will take SOME work to personalize any home.
Preparing yourself with these 5 simple things: loan approval, a great broker, getting to know the neighbourhood, protecting yourself, and being reasonable – will help make the home buying process easier for you and your family.
1. Get pre-approved for your Mortgage
If possible, get “pre- approved” for a loan in the amount you’re willing to borrow.
With this pre-approval, you are in a stronger position to buy a home when you’re ready – rather than finding your dream home, only to lose it to another buyer, because you were waiting on the approval.
2. Find a great real estate consultant.
Once you’ve decided to buy a home, find a great real estate consultant. What you’re looking for is a Buyer’s Agent. This means that the consultant represents YOU as the buyer, rather than the person selling the home.
They will have YOUR best interests at heart. Really good consultants know their markets, and will help you find the best match for your needs and wants. They can also recommend mortgage brokers with whom they’ve worked in the past.
3. Look before you leap.
Drive around the neighbourhood at different times of day. Get out and walk around and chat with neighbours. Some people like friendly neighbours, others think of them as nosy.
Drive to the local grocery store, laundry, and anywhere else that you frequent.
Visit nearby schools and see for yourself how the kids behave and how the grounds look. The point is to see if this is really the type of neighbourhood you want to live in BEFORE you make an offer.
4. Be prepared.
Make sure your contract has reasonable contingencies included to protect you as a buyer. Reasonable can be things like -- approval by a home inspector and a lawyer reviewing your contract. For the long-term investment, make sure that you buy homeowner’s insurance, and upgrade it as the value of your new home and its contents increase.
5. Be reasonable.
No home will be without flaws. Many times it’s these flaws that lend character to older homes, but nonetheless, it will take SOME work to personalize any home.
Preparing yourself with these 5 simple things: loan approval, a great broker, getting to know the neighbourhood, protecting yourself, and being reasonable – will help make the home buying process easier for you and your family.
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