Tips On Buying Your First Home
- Make
a list of all the features you want in your new home such as number of
bedrooms, bathrooms, proximity to schools, shopping and workplace.
- Be
sure you can afford your home. Your monthly housing costs should not be
more than 32% of your gross monthly income and your entire monthly debt
load (which includes other debts such as car loans and credit card
payments) should not be more than 40% of your gross monthly income.
- Calculate
your other monthly living expenses such as food, clothing,
transportation, personals and childcare to ensure you can afford your
mortgage payments.
- Call a REALTOR in your preferred
area. They are trained professionals with knowledge about local
conditions and the housing market in general. Through the Multiple
Listings Service they have access to virtually every property listed
for sale in the province. Your REALTOR can narrow down your search and
provide you with information on properties for sale and those that have
recently sold. This will allow you to make informed decisions about
pricing. Licensed by the province and members of local real estate
boards, REALTORS must adhere to high standards of ethical behavior.
- Obtain
a pre-approved mortgage from the lender of your choice. This will help
you determine the price range you should be looking in. With a
pre-approved mortgage, your lender will guarantee the interest rate for
up to 60 days.
- You may wish to have an independent
appraisal done of a property before you offer a price. It can keep you
from paying more than the market value.
- Ask your
REALTOR for a copy of the Property Condition Disclosure Statement. This
document is completed by the sellers and ensures the buyer gets
complete information about the property they are about to purchase, and
alerts buyers when they need to do more research on a property.
- If
buying a new or existing condo, look beyond style and amenities and
investigate whether the construction is of good quality. You can ask
for a copy of the minutes to Strata Council Meetings to determine what
kind of problems the condominium has had in the past, and the expenses.
- To assess potential water leakage problems, visit a
condominium project immediately after a rainfall and check to see if
flat areas such as roof deck and walkways have large pools of standing
water on them. All building surfaces except specially designed ponds
should drain freely and be immediately clear of water after a rainfall.
- It is always a good idea to have the home inspected
from a professional home inspector. An inspector's written report
should include how well-built the home is and whether any repairs are
necessary and the estimated costs.
- Don't forget
about other costs when you buy your own home such as legal fees (they
will most likely be at least $500), property taxes and the HST (if
purchasing a new home).
For more tips email me at: wwoo@sutton.com