Buying a Home
Working with an Agent
Working with an agent Let your real estate agent do the searching for you. The best buys aren’t in the newspaper ads;most great opportunities are on "hot sheets" that are available every morning to salespeople with access to MLS information.
An agents job is to:
- Provide information on the property and the area
- Negotiate a price and terms that are agreeable to both buyer and seller
- Help arrange a source of financing
As a homebuyer, you must work with your agent to find the home that’s right foryou. Communication is key - tell your agent what you want, and be specific
- Offer a detailed description of your property needs and wants.If you will absolutely not consider a house without a hardwood floor, say so. And if air conditioning is a "nice to have" rather than a "must have," communicate that,too.
- Be specific about where you want to live. If you refuse to live outside a certain area, it might take longer to find you a home, but your agent will know not to waste your time with anything not in your chosen neighbourhood.
- Tell your agent what you can afford. He or she can help you get a pre-approved mortgage so you know for sure what your price range will be.
- Communicate your likes and dislikes for each property you see. It will help your agent narrow down the possibilities.
- Commit to one salesperson.
- Respect and perform the terms of the purchase agreement.
- Keep an open mind. Agents know about those charming little areas that you’ve never even heard of. You might find your dream home in a completely unexpected place.
Elements of an Offer
Here’s a quick reference to everything you need to know about making an on offer on a property.
- Price: Depends on the market and the buyers, but generally, the price offered is different from the asking price.
- Deposit: Shows the buyer’s good faith and will be applied against the purchase price of the home when the sale closes. Your agent can advise you on a suitable amount to offer.
- Terms: Includes the total price the buyer is offering as well as the financing details. The buyer may be arranging his/her own financing or may ask to assume your existing mortgage if you have an attractive rate.
- Conditions These might include "subject to home inspection," "subject to the buyer obtaining financing," or "subject to the sale of the purchaser’s property."
- Inclusions and Exclusions These may include appliances and certain fixtures or decorative items, such as window coverings or light fixtures.
- Closing or Possession date Generally, the day the title of the property is transferred to the buyer and funds are received by the seller, unless otherwise specified (except in Manitoba and Quebec).
Qualified for a Mortgage
Your Royal LePage agent can arrange to have you pre-qualified for a mortgage before you start shopping for a home. It’s easy, and you’ll avoid possible disappointments down the road if you fall in love with a place, then find out you can’t afford it. Plus, once you do find the perfect home, it will mean you can make an offer immediately.
Here’s how mortgage approval works: the amount of money you qualify for, plus the amount of cash you can put down equals the amount you can afford to spend on a home. Most lending institutions won’t allow more than about 30% of your income to support a mortgage. If you have other debts, they usually won’t allow your debts and your mortgage to exceed 40% of your income.
Finalizing Your Mortgage
Once you’ve found the home you want to buy, you’ll need to finalize your financing. You’ll need to provide your lender with the following documents:
- A copy of the real estate listing of the property. If the home is still to be built, the mortgage lender will need to see the architect’s or builder’s plans and details on lot size and location.
- A copy of the offer to purchase or the building contract, if this document has been prepared.
- Documents to confirm employment, income and source of pre-approval.
- If you have a pre-approved mortgage, it’s a simple matter of finalizing a few details with your mortgage specialist.