Home Buyers

Deciding To Buy A Home in Grimsby, Ontario

Although there are many good reasons for you to buy a home, wealth building ranks among the top of the list. We call home ownership the best “accidental investment” most people ever make. But, we believe when it is done right, home ownership becomes an “intentional investment” that lays the foundation for a life of financial security and personal choice. There are solid financial reasons to support your decision to buy a home, and, among these, equity buildup, value appreciation, and tax benefits stand out.

Base your decision to buy on facts, not fears.

1. keyboard_double_arrow_right If you are paying rent, you very likely can afford to buy
2. keyboard_double_arrow_right There is never a wrong time to buy the right home. All you need to do in the short run is find a good buy and make sure you have the financial ability to hold it for the long run
3. keyboard_double_arrow_right The lack of a substantial down payment doesn’t prevent you from making your first home purchase
4. keyboard_double_arrow_right A less-than-perfect credit score won’t necessarily stop you from buying a home
5. keyboard_double_arrow_right The best way to get closer to buying your ultimate dream home is to buy your first home now
6. keyboard_double_arrow_right Buying a home doesn’t have to be complicated, there are many professionals who will help you along the way

Hiring Your Real Estate Agent

The typical real estate transaction involves at least two dozen separate individuals ? insurance assessors, mortgage brokers and underwriters, inspectors, appraisers, escrow officers, buyer’s agents, seller’s agents, bankers, title researchers, and a number of other individuals whose actions and decisions have to be orchestrated in order to perform in harmony and get a home sale closed. It is the responsibility of your real estate agent to expertly coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout.

Seven main roles of your real estate agent:

1. keyboard_double_arrow_right Educates you about your market.
2. keyboard_double_arrow_right Analyzes your wants and needs.
3. keyboard_double_arrow_right Guides you to homes that fit your criteria.
4. keyboard_double_arrow_right Coordinates the work of other needed professionals.
5. keyboard_double_arrow_right Negotiates on your behalf.
6. keyboard_double_arrow_right Checks and double-checks paperwork and deadlines.
7. keyboard_double_arrow_right Solves any problems that may arise.

Qualifications are important. However, finding a solid, professional agent means getting beyond the resume, and into what makes an agent effective. Use the following questions as your starting point in hiring your licensed, professional real estate agent:

1. keyboard_double_arrow_right Why did you become a real estate agent?
2. keyboard_double_arrow_right Why should I work with you?
3. keyboard_double_arrow_right What do you do better than other real estate agents?
4. keyboard_double_arrow_right What process will you use to help me find the right home for my particular wants and needs?
5. keyboard_double_arrow_right What are the most common things that go wrong in a transaction and how would you handle them?
6. keyboard_double_arrow_right What are some mistakes that you think people make when buying their first home?
7. keyboard_double_arrow_right What other professionals do you suggest we work with and what are their credentials?
8. keyboard_double_arrow_right Can you provide me with references or testimonials from past clients?

Secure Your Home Financing

While you may find the thought of home ownership thrilling, the thought of taking on a mortgage may be downright chilling. Many first-time buyers start out confused about the process or nervous about making such a large financial commitment.

From start to finish, you will follow a six-step, easy-to-understand process to securing the financing for your first home.

Six steps to Financing a Home:

1. keyboard_double_arrow_right Choose a loan officer (or mortgage specialist).
2. keyboard_double_arrow_right Make a loan application and get preapproved.
3. keyboard_double_arrow_right Determine what you want to pay and select a loan option.
4. keyboard_double_arrow_right Submit to the lender an accepted purchase offer contract.
5. keyboard_double_arrow_right Get an appraisal and title commitment.
6. keyboard_double_arrow_right Obtain funding at closing.

Locating The Perfect Home

You may think that shopping for homes starts with jumping in the car and driving all over town. And it’s true that hopping in the car to go look is probably the most exciting part of the home-buying process. However, driving around is fun for only so long, if weeks go by without finding what you’re looking for, the fun can fade pretty fast. That’s why we say that looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms.

Questions to ask yourself

1. keyboard_double_arrow_right What do I want my home to be close to?
2. keyboard_double_arrow_right How much space do I need and why?
3. keyboard_double_arrow_right Which is more critical: location or size?
4. keyboard_double_arrow_right Would I be interested in a fixer-upper?
5. keyboard_double_arrow_right How important is home value appreciation?
6. keyboard_double_arrow_right Is neighborhood stability and priority?
7. keyboard_double_arrow_right Would I be interested in a condo?
8. keyboard_double_arrow_right Would I be interested in new home construction?
9. keyboard_double_arrow_right What features and amenities do I want? Which do I really need?

Making An Offer

When searching for your dream home, you were just that ? a dreamer. Now that you’re writing an offer, you need to be a businessperson. You need to approach this process with a cool head and a realistic perspective of your market. The three basic components of an offer are price, terms, and contingencies (or “conditions” in Canada).

Price: the right price to offer must fairly reflect the true market value of the home you want to buy. Your agent’s market research will guide this decision.

Terms: the other financial and timing factors that will be included in the offer.

Terms fall under six basic categories in a real estate offer:

1. keyboard_double_arrow_right Schedule: a schedule of events that has to happen before closing.
2. keyboard_double_arrow_right Conveyances: the items that stay with the house when the sellers leave.
3. keyboard_double_arrow_right Commission: the real estate commission or fee, for both the agent who works with the seller and the agents who works with the buyer.
4. keyboard_double_arrow_right Closing costs: it’s standard for buyers to pay their closing costs, but if you want to roll the costs into the loan, you need to write that into the contract.
5. keyboard_double_arrow_right Home warranty: this covers repairs or replacement of appliances and major systems. You may ask the seller to pay for this.
6. keyboard_double_arrow_right Earnest money: this protects the sellers from the possibility of your unexpectedly pulling of the deal and makes a statement about the seriousness of your offer.

Benefits of Home Insurance

Unlike most major purchases, once you buy a home, you can’t return it if something breaks or doesn’t quite work like it’s supposed to. That’s why home owner’s insurance and property inspections are so important.

A home owner’s insurance policy protects you in two ways:

1. keyboard_double_arrow_right Against loss or damage to the property itself
2. keyboard_double_arrow_right Liability in case someone sustains an injury while on your property

The property inspection exposes the secret issues a home might hide so you know exactly what you’re getting into before you sign your closing papers.

• keyboard_double_arrow_right Your major concern is structural damage.
• keyboard_double_arrow_right Don’t sweat the small stuff. Things that are easily fixed can be overlooked.
• keyboard_double_arrow_right If you have a big problem show up in your inspection report, you should bring in a specialist. If the worst-case scenario turns out to be true, you might want to walk away from the purchase.

Close

The final stage of the home buying process is the lender’s confirmation of the home’s value and legal statue, and your continued credit-worthiness. This entails a survey, appraisal, title search, and a final check of your credit and finance. Your agent will keep you posted on how each if progressing, but your work is pretty much done.

You just have a few preclosing responsibilities:

1. keyboard_double_arrow_right Stay in control of your finances.
2. keyboard_double_arrow_right Return all phone calls and paperwork promptly.
3. keyboard_double_arrow_right Communicate with your agent at least once a week.
4. keyboard_double_arrow_right Several days before closing, confirm with your agent that all your documentation is in place and in order.
5. keyboard_double_arrow_right Obtain certified funds for closing.
6. keyboard_double_arrow_right Conduct a final walk-through.

On closing day, with the guidance of a settlement agent and your agent, you’ll sign documents that do the following:

1. keyboard_double_arrow_right Finalize your mortgage.
2. keyboard_double_arrow_right Pay the seller.
3. keyboard_double_arrow_right Pay your closing costs.
4. keyboard_double_arrow_right Transfer the title from the seller to you.
5. keyboard_double_arrow_right Make arrangements to legally record the transaction as a public record.

As long as you have clear expectations and follow directions, closing should be a momentous conclusion to your home-searching process and commencement of your home-owning experience.

Protecting Your Investment

Throughout the course of your home-buying experience, you’ve probably spent a lot of time with your real estate agent and you’ve gotten to know each other fairly well. There’s no reason to throw all that trust and rapport out the window just because the deal has closed. In fact, your agent wants you to keep in touch.

Even after you close on your house, your agent can still help you:

1. keyboard_double_arrow_right Handle your first tax return as a home owner.
2. keyboard_double_arrow_right Find contractors to help with home maintenance or remodeling.
3. keyboard_double_arrow_right Help your friends find homes.
4. keyboard_double_arrow_right Keep track of your home’s current market value.

Pay attention to your home’s maintenance needs is essential to protecting the long-term value of your investment.

Home maintenance falls into two categories:

1. keyboard_double_arrow_right Keeping it clean: Perform routine maintenance on your home’s systems, depending on their age and style.
2. keyboard_double_arrow_right Keeping an eye on it: Watch for signs of leaks, damage, and wear. Fixing small problems early can save you big money later.