The Key To Your New Home
SETTING BUYERS UP FOR SUCCESS
Buyers will have confidence when finding a home they are excited about can move forward and make an offer to not miss opportunities. Securing a mortgage is complex and often more expensive then many consumers realize. There are numerous documents and details that must come together in a short period of time.
SECURING A MORTGAGE LOAN
A qualified Home Inspector can identify and or discover underlying problems in a home. The cost can range anywhere from $300-$500 maybe higher. For one of the biggest finical purchases you will ever make , having peace of mind of knowing exactly what you are purchasing is well worth the cost.
Your lender (your bank) will most likely require an appraisal or survey of the property you wish to purchase before the final approval of financing is done. The cost can range anywhere from $300 - $500 maybe higher. It is very important that as a buyer you do not get caught up in a biding war and offer more then what the house is actually worth, unless you have the cash flow to make up the difference. If for example the house is worth $850,000 as per appraisal and you offer $950,000 and seller accepts - you are now in a binding contract. Your lender provider will tell you that you must come up with the balance of $100,000. Even if your bank did approve you for $950,000, because the house is only worth $850,000 your lender will not lend you more then what the house is worth.
Land Transfer Tax
In Ontario, a Land Transfer Tax of 2% of the purchase price applies. For First time home buyers when purchasing a home in the city of Toronto area a land transfer tax rebates may apply. In addition, purchases in Toronto, an additional municipal tax up to 2% applies.
Do not mistake Mortgage insurance with home insurance. If your down payment is less than 20% of the purchase price you will be required to buy mortgage insurance. Also known as mortgage guarantee and home-loan insurance) is an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan. Rates depend on how much you are borrowing.
There are a number of legal documents involved in the purchase of your new home. The cost of a lawyer can be costly and buyers should give them selves ample time to research a real estate lawyer that is best suited for their case. Your lawyer will perform a Title Search to ensure there are no liens against the property and will register your deed and mortgage.
The policy provides coverage against losses due to title defects, even if the defects existed before you purchased your home. A title defect is a problem with the title which prevents free and clear ownership. Title insurance policies protect you for the duration of owning your property. It protects against a number of risks that a solicitor's opinion on title may not cover.
HIDDEN CLOSING COSTS
AFTER CLOSING COSTS
Renovations and Repairs
If purchasing a fixer upper or a home that requires additional repairs before its move in ready, take consideration the costs and time required to get the job done. Even the smallest jobs can becoming challenging and cost much more then expected.
Appliances, Furniture, and Decor
Buyers are faced with the challenge of fitting what once worked in there old layout to a new layout that which they thought looked much bigger. Furniture layout can be deceiving compared to actual size of the room. Don't be afraid to bust out your measuring tape and see if your current large sectional couch fits or if your large dinning room set will fit.
Moving can cost just as much as a home inspection when you hire professionals. Using professions movers is a preference, if you are able to move yourself this could give you a good opportunity to save a good check of money that you could use in other closing costs
Utility and Service Hook-Ups
Be sure to check with your providers (gas, hydro, water, telecommunication on hook-up fees to ensure a smooth transition having funds available.
On a resale home, an adjustment is any item that has been prepaid by the Seller which is applied beyond the closing date and will benefit the purchaser after the closing date. The amount that has been over paid by the Seller is pro-rated, and a credit is given to the seller as an adjustment on closing.
You must have insurance on your home before your lender will
release the closing funds. Basic home insurance packages for residence cover three main areas: Buildings - covers your house and other buildings on the property. Contents - covers replacement of your belongings, usually up to 70% of the amount you insure your house for. Liability - claims against you.
Harmonized Sales Tax (HST
The HST 13% will apply to a builder’s sale of a newly constructed or substantially renovated residentia, including a multiple unit residential complex. Buyers may be eligible for rebates from both the provincial and federal governments. The sale of housing that has been previously occupied by an individual as a place of residence would also be exempt.
Tarion New Home Warranty Program
Guarantees protection to buyers from various issues that may emerge on builds of new homes. Plus deposit protection is offered. Enrollment fee maybe included in the purchase price, or it may be due at closing. Visit www.tarion.com, for more information.
THINKING OF BUYING
QUALITY DATA YOU CAN TRUST AND RELY ON
Buying a home can be one of the most exciting adventures in your life. It can also be one of the most overwhelming experiences if you try to go at it alone. You should have an experienced REALTOR® working for you, guiding you and looking out for your best interests. Did you know that when you work with a REALTOR® as a buyer, in most circumstances your REALTOR® is paid by the sellers from the proceeds of the sale? So why wouldn't you work with a REALTOR®?
First Time Home Buyers
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Register today and gain access to 60% more listings that aren't available to the general public, at no cost, risk or obligation. Anytime a new listing matches your criteria you will receive the information with an automated email . This will give you the leverage over other active buyers who aren't working with a REALTOR®.
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Quality information outlining the service that First-Time Home Buyers will receive when choosing Forest Hill Real Estate Brokerage Inc. Signature to help guide you through the buying process.
About Our Company - Forest Hill Real Estate Brokerage Inc. Signature
About Elizabeth Hobson - The Key To Your New Home
Our Service Guarantee
Step #1 - Buying Consultation
Step #2 - Credit And Finances
Step #3 - Property Search
Step #4 - Offer Price Strategy
Step #5 - Negotiating The Contract Terms
Step #6 - Securing A Mortgage Loan
Step #7 - Closing Day Preparation
Step #8 - Closing Day Final Steps
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