Get a Mortgage Pre-Approval!
You need to know what you can afford. You have to be realistic before
you jump headlong into it. We suggest making an appointment with your
bank’s mortgage representative and having a serious talk. Don’t be
afraid to shop around. Check all banks and compare rates. Don’t be
afraid to haggle – most banks will knock off 1% from the posted rates.
Ask for that. You deserve it. This is the biggest purchase of your
life. Also find out how long the rate will be “locked in" for. Usually
60-90 days. If the rate does go down in that time period normally your
bank will give you the lowest rate in those 60-90 days, make certain
that this is the case.
Make your Home Wish List
Do you want a townhouse, semi-detached or a detached home? What about a
condo apartment? How many bedrooms do you need? What about a backyard?
Is it something you want – will you be able to maintain it? Location –
do you need to be near a school for your kids?
Consult with a Realtor
to find a home to suit your needs and price range. Be honest and
explain your situation. We’re here to help you. And realize that is not
always going to be easy. If you are pre-approved for a mortgage at
$200,000 and you have a downpayment saved up of $10,000 then you can
look at homes priced up to $210,000. If your chosen location is Central
Toronto, it will be near impossible to find a 4 bedroom detached home
for that price. You have to consider what is affordable. How much home
can you afford in your chosen location? The farther you go out of the
city the less expensive everything is. If you go to Ajax for example
you could find a detached four bedroom in that price range. In Toronto,
you are looking at $280,000+++.
Search for your New Home
Be patient – it may take awhile to find the perfect home or conversely,
it may be the first home you step foot in! A word of warning, in the
current market homes are being sold at an alarming rate. If there is
something you decide you like, it is better to jump on it then to wait
too long and have it sold out from under you.
Make an Offer on the Home you Choose
Your Realtor will take care of all the negotiations and will advise you
on every aspect of the process. Standard conditions in the offer are:
Buyer arranging financing and inspection of the home by a qualified
home inspection professional. These conditions are included to protect
you – the Buyer. The financing is approved by your bank and the
inspection is done by a home inspector of your choice. Your Realtor
will have names of inspection companies to choose from or check the
yellow pages and compare rates. The standard is for the inspector to
supply you with a report at the end of the inspection and alert you to
any concerns he or she may have. Having a termite inspection in any of
the older homes in Toronto is a good idea.
Once the offer is accepted
and the conditions are fulfilled then the deal (contract) is firm and
binding. You just need the Seller to move out! You will need to prepare
for moving expenses and utility set-ups (water, hydro, gas, etc.)
Closing Day!
This is the day that your Lawyer and the Seller’s Lawyer exchange
documentation and funds and YOU GET THE TITLE AND KEYS TO YOUR NEW
HOME!! It may well be a stressful day for you – actually, we know from
experience (We’ve done this twice now) that yes, it is stressful. The
relief of finally having your new house keys in your hand will be such
a pleasure.
Moving Day!
Careful planning ensures a smooth and painless move. Whether you are
hiring a moving company or you are doing the work yourself, make
certain to assess the costs and be ready. Renting a truck and doing it
yourself may be cheaper at times, but to save the strain on your back
you may just let the pros do it. The costs can vary wildly.
For our first home we, with a few friends and family members, moved us
in. We were going from an apartment to a house and it was easy. The
initial cost of the truck was not too expensive, it was the additional
mileage cost that was tacked on at the end that was not so pleasant.
Not to mention the pain in our backs and knees the next day from all
the lifting and stair climbing! And we weren’t out of shape, it was
just crummy, hard work.
But here’s the truth, for moving into our current home we broke down
and hired a moving company – not a big name but still a bonded, insured
company and the guys were great. They brought the truck, emptied out
our storage locker and got everything into our new home quickly and
efficiently. Yay! No sore back and knees for us! We personally are in
relatively good shape and not lazy by any stretch of the imagination,
but we are also not into busting our backs again. So, ultimately, the
choice is yours. Yes, it’s cheaper to do it yourselves just make
certain you are ready for the work, that’s all we’re saying.
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