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Tips On Buying Your First Home |
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- 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 form 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 GST (if purchasing a new home).
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