Buying the first home
First time home buyers tips.
Purchasing Your First Home is a very important decision in your life. Mortgage approval and financing is a part of it for most of us. A brokers Job is to explain your mortgage options and a house purchase related expenses. There are few interesting helps for First time buyers such as - First-Time Home Buyers' Tax Credit, Land Transfer Tax Refunds For First-Time Homebuyers and Home Buyers' Plan (HBP)
Buyers checklist
- Pick-up your best mortgage option based upon your lifestyle, Income and Choices. This will help you in the process as you would know how much you can afford and where to buy, what to buy.
- No Down Payment (Conditions and existing laws apply)
- Cash Back Mortgages
- High Ratio Mortgages (less than 20% down payment) Insurance may be required.
- Conventional Mortgages (20% or more down)
- Get a Pre-approval and lock in your rate. The lock in period actually vary from lender to lender.
- Do your research. What do you want? Where do you want? Got kids? Then where is the School and how is it's rank? How is the area? What is the demographics, Shopping options, hospitals, public transit like these there are a lot of questions. Put them all down. Go to the home buyers resources page there are some good websites to help you in your research.
- Find few Real Estate Agents, interview them, ask for referrals and verify them. The agent will assist in your home search and help to prepare the offer to purchase once you have found the home you want. Do not sign any contract with the agent unless you are sure that her / him is the person you really want to do business with.
- Settle on few options. Look at them carefully. Go to the neighborhood in school hours, evening, night - just drive by. Observe. Go in front of the school, look at the students - they will tell you a lot about the neighborhood without talking to you. Find out how you next door neighbor is (tough Eh!)
- Makeup your mind. Place an offer. Finally negotiate on the price, and seal the deal./li>
- Remember the first step? Call your broker or bank, ask if the rates has recently changed or not. Get or confirm the rate again. Always ask for clarification. Ask what is the promotion like—Air Miles, free gifts etc.
Decide on your mortgage choices one more time. Prepare the following documents. - Accepted purchase and sale agreement
- Realtor MLS listing
- Proof of down payment (3 months bank statements/Gift letters etc.)
- Proof of closing costs (1.5% of purchase price)
- Employment Letter(s)
- Recent Pay Stub(s)
- if Self-employed - (T1-generals/Tax assessments/Business license)
- Other documents may be required in addition if requested by the lender
- Lawyers name and address Go to the link page to find the law society of upper Canada web page
- Your bank or agent will submit for approval to the underwriter of the financial institution. An Approval is received generally within few days in most of the cases.
- Sign your Mortgage Contract — read the mortgage commitment, disclosure and other documents to sent you for your review and signatures - normally your lawyer does this for you. You can choose your payment frequency and make other adjustments. Any additional documents that the lender requires will be contained in the mortgage commitment and must be provided within 10 days prior to closing.li>
- Final closing (Handover) - A few days prior to closing you will need to meet with your lawyer to sign final documents. Your closing costs and down payment will be due at this time.
