You should discuss with your mortgage professional how much home you can really afford and ensure that you are pre-approved well before you start visiting homes. Achieving pre-approval status is very easy. First, contact your mortgage professional to set up a mortgage consultation. They will assist you in filling out your mortgage application and conduct a full check on your credit before you launch your search for a home. Pre-approval for a mortgage means that you have been conclusively approved for the purchase of a residential property by a lender. Pre-approval provides a marked edge in home buying negotiations as the vendor understands that the financing cannot fall through. Furthermore, the pre-approval acts as a guarantee that if the rate increases during up to a period of approximately four months you will still receive the original rate. If the home you are interested in purchasing won't be completed for another six months or more, then it is advisable to review the mortgages offered by the onsite builders. In most of these cases you will be able to receive capped interest rate a guarantee for a longer period of time such as one to two years.
Over the past quarter century, mortgages have evolved in a variety of ways developing an innovative range of features: Variable Rate Mortgage - A mortgage whose interest rate changes with the financial markets. The rate goes up or down each month, and therefore the portion of your monthly payment is specified to pay down the interest follows. In many cases, your mortgage payment will stay the same. High-Ratio Mortgage - The mortgage you have to apply for when you have on hand in cash less than 25% of the total purchase price to form your down payment. This only way to get this type of mortgage is through paying a premium to lending insurance sources such as CMHC or GEMI. Closed Mortgage – This mortgage has a fixed interest rate which is generally less than an open mortgage rate and a term that is unchangeable and firmly set. Paying off a closed mortgage before the specified end date incurs the payment of a hefty penalty. Convertible Mortgage – The term of this mortgage changed from short to long, depending on your financial situation. Open Mortgage – This most flexible mortgage allows you to pay it off, renew or refinance whenever you want.
Home Inspections are intended to assist you in comprehending the overall condition of a residential property. The home inspection report could save you considerable time during the home purchase process as well as many thousands of dollars in needed repairs. It is unthinkable to purchase a home without a home inspection being conducted as it will point out many areas which may require maintenance and repair that you would not necessarily be able to identify yourself. The areas that may be covered include the property lot and outdoor grounds, the structure itself including all exterior surfaces, the various roofs, the garage or carport, the attic, the basement, any crawl spaces, and very importantly the heating, air conditioning, electrical, and plumbing systems. A thorough home inspection will also cover the fireplace and any wood burning devices, as well as appliance condition. Keep in mind that your inspection rights are firmly stated in the Contract For Sale and that they will vary depending what part of Canada you’re in. In some relatively rare cases homes can even be sold in an "as-is" condition even though a complete standard home inspection may take place.
Prior to the actual day of closing day, there are certain steps you should undertake with me, your real estate agent, to ensure that your residential property transaction will close properly, on time, and that all of the various activities will proceed smoothly. A couple of days before closing, review your closing statement: You should check all the calculations to make sure that you are allocated credit for all the deposits you have made as well as any other credits which may be due to you from the vendor or for any other items which you and the seller have agreed upon. Carefully review all of the various closing fees (and there are likely quite a few of those) in order to be certain they match the amounts you had been previously informed of, and that you are in full agreement with all of them. Always have a calculator handy and do the math for every item on the closing statement, as everyone is human and errors do occur. Over and above the paperwork that you are verifying, you should inspect the property with me one more time just before to closing: This will ensure you don’t find unexpected surprises.
When viewing a home, pay particular attention to average utility bills, square footage, and annual taxes. Make a note of any added value features such as roofing, siding, HVAC and plumbing. Check each room of the home including crawl spaces and basements for large cracks, water damage, and mold. Make a checklist of important questions to ask: Will you need to purchase window coverings or appliances? Does the interior appear to be in good condition? Does the exterior appear to be in good condition? Do the neighbours' homes appear to be in good condition? Do the surrounding neighbours appear to take good care of their homes and yards? Is the home in a good location of the neighbourhood? Does the home in need any major replacements or repairs? Is the landscaping well maintained? Does the home possess any architectural features? What is the lot size? What type of services are located nearby? How close are schools and shopping centers? How long has the home been listed for sale? Why is the home for sale? Does the price of the home fall within your budget? Getting good answers to these questions can assure you peace of mind.
Under some specific circumstances and primarily in buyer’s markets, prospective home purchasers may request to have the vendor "take back" a 2nd mortgage to assist in your purchase of their residential real estate property. In those cases when the vendor does not immediately require all of the proceeds from the sale of their home in order to buy their next property, this may present a very attractive option to the buyer. The advantage in an arrangement such as this for the purchaser is that by combining the down payment with the 2nd mortgage which is secured from the vendor, you may be able to effectively get a lower ratio mortgage. In cases where the down payment is already fairly low and CMHC is involved, you might avoid paying the mortgage insurance premium, saving you a hefty amount of money. If a vendor take back is in your offer, you should specify the terms that you prefer to pay on such a 2nd mortgage. Remember that the lender for your 1st mortgage needs to be made aware of this information so that they can properly underwrite your loan, as there are some specific minimum requirements which do apply.
Before you place a call to a moving company you must make several key decisions. These determinations are best achieved very early in the moving planning: What is the preferred method to dispose of any household assets and items you don't want to move to your new home? Identify any furnishings that are not a good fit as well as any items that the members of your family have long outgrown. When you decide what you’re keeping and what you’re getting rid of, you have various choices. You can put a used furniture ad in the classifieds, whether in your local paper or online, or you can have a garage sale. You may even choose to donate your items to charity thrift shops. Make sure to keep the receipts if you give to charity as they are valid for your tax deductions. Arrange your moving day to occur during the a period of the month or year that is least busy, as it will save you money in moving costs. A considerable percentage of residential moves take place during the last week of the month, and throughout the summer, so avoiding those times is key to moving economy.
It is common knowledge that conventional standard home inspections are necessary to determine any repairs the home might need. However, as your real estate agent and looking out for your best interests, I may suggest these required or recommended additional inspections: Termite Inspection to determine the presence of wood-destroying insects or organisms such as fungus; Asbestos Inspection to check if asbestos fibers are present and evaluate their current condition; Composition Board Siding Inspection plus any areas of elevated moisture; Stucco Siding Inspection checks both cement-based "traditional" stucco as well as synthetic stucco; Lead Paint Inspection discovers the presence of lead paint; Pool / Hot Tub Inspection to evaluate the operability and condition of this equipment and its decks; Private Well Flow & Potability Inspection to determine if a private well adequately supplies drinkable water to the property; and an Underground Storage Tank Inspection through a soil or vacuum test determines if any underground tanks which store oil have contaminated the soil. There are various different types of inspections which may be called for in particular property cases. Obtaining the correct inspections for a home prior to its purchase is a smart decision which protects your investment.
Prior to a move you should gather all your records and the various memorabilia in your home and make plans to move them as carefully as you possibly can. These include: Diplomas and school records; Family genealogies and pictures; Family medical and tax records; as well as social organizations, business or other memorabilia. You should also make sure that you notify utility providers, media suppliers and others before moving. Make a list of businesses that will need to be notified and check them off as you go: Natural gas company; Electric power supplier; Water company; Cable provider; Local and long distance telephone providers; Credit card companies and banks; Stock broker and mutual fund accounts; Religious organizations; Magazine subscriptions and book clubs; and any Recreational clubs such as Country, Boating and Sporting. Other great tips to prepare for a smooth move include starting to winnow down your fridge and freezer’s contents several weeks before the move as moving cold or frozen food is often problematical. Remember that moving day is especially hard on the family pets. Therefore have them properly groomed prior to the move and make plans to get them to your new home quickly.
For some children, moving can be an upsetting experience. Communicate realistically and openly with all members of the family as early as possible. Here are a few helpful hints to make the transition easy: Inform your children of the fact that you will be moving and include them in the decision making process. If possible, allow them to help in selecting the new home to give them a feeling of "ownership." This will make the move a little more pleasant. Let children pack/unpack their belongings themselves as it will reinforce that they are a participant in the process. Don't force children to get rid of items in an effort to make the move "easier" as that might make the wrenching process even harder on them. Take pictures of the new home and school and collect special items from the neighbourhood. Get acquainted with new teachers and sports coaches. Assign age-related tasks for each family member so everyone feels included. Be sure to include the grandparents, relatives, family members and friends of the children in the excitement of moving to a new home. After all, moving can be seen as an exciting and fun adventure!