Guide To Buying a Home

Bill (D'Canis) Dikianidis & Wendy Easveld

What Can You Afford?

Did You Know ...

• Purchase a home involves one-time costs and monthly expenses?
• The largest one-time cost is the down payment. I t usually represents between 5-25% of the total price of the property?
• In addition to the actual purchase price, there are a number of other expenses that you might be expected to pay for?

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What Can You Afford? (continued)

Typical One Time Costs: Mortgage Applications and appraisal fee Property inspection(optional) Legal fees Legal disbursements Property survey(sometimes provided by seller) Land transfer Mortgage insurance Moving expenses Mortgage intrest

Typical Monthly Fees: Mortgage payments Maintenance Insurance Condo fees Property taxes and utilities

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Mortgages

Your mortgage specialist will answer any of your questions and help you determine which financing terms and options are right for you. Your mortgage specialist and real estate professional work together to help you find the right home for you and select the best financing.

Why should I buy a pre-approved mortgage? Having a pre-approved mortgage will give you the confidence of knowing exactly what you can spend on a home before you start looking. You will also be protected against interest rate increases while looking for your home.

Finalizing Your Mortgage:

• Once you've found the home you want to purchase, there are some documents you'll probably be asked for in order to finalize your financing
• 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.

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Mortgages (continued...)

• 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 applicable).
• If you have a pre-approved mortgage, it's a simple matter of finalizing a few details which your mortgage specialist will explain to you.

Offers

The Main Elements of an Offer:

1. Price: Depending on local market conditions, your opinion of value and market information provided by your real estate professional, the price you offer may be different from the seller's price.
2. Deposit: The deposit shows your good faith and will be applied against the purchase of the home when the sale closes. Your real estate professional can advise you on an appropriate amount.
3. Terms: Includes the total price offered and the financing details. You may arrange your own financing or ask to assume the seller's mortgage, especially if it has an attractive interest rate.
4. Conditions: These might include: "subject to home inspection", "subject to you obtaining financing", or "subject to you selling your property".
5. Inclusions and Exclusions: These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors.
6. Closing or Possession Date: Generally, the day of title of the property is legally transferred and the transaction of funds finalized unless otherwise specified. continued...

Offers (continued)

How to Make an Offer:

• When it comes time to make an offer, your real estate professional can provide current market information and will assist you in drafting your offer.
• Your professional will communicate your offer, sometimes known as an Offer to Purchase, to the seller, or the seller's representative, on your behalf. Sometimes there will be more than one offer on a property coming in at the same time. If this is the case the seller may choose which offer to accept.
• The offer can be ether firm or conditional
• A firm offer means you are prepared to buy the property with no conditions and is usually preferable to the seller.
• A conditional offer means that you have placed one or more conditions on the purchase.
• After the offer is presented the seller may accept your offer, reject your offer or make a counter offer.

After the Offer is Accepted

Steps to Take After Your Offer is Accepted:

1. Hire a Legal Professional:
• A legal professional will represent your interests and process the legal documents required to purchase a home.
• The legal process differs from province to province. Your real estate professional or legal professional will advise you on the steps to be taken before the keys to your new home are presented to you.
• Your real estate professional can provide you with the names of legal professionals who specialize in real estate.

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After the Offer is Accepted (continued)

2. Have the Home Inspected (optional):
• Having the home inspected by a qualified home inspector will give you the added confidence that you've made the right decision, having your home inspected will also higlight any problems or attractive features you may have missed.
• When the procedure is complete, you may wish to ask for a full written report plus estimated costs for any necessary repairs.

Moving

General Moving Tips:

• Book the movers, you can have them move everything, the breakables, or just the big things. It is a good idea to look in to this step.
• If you own your previous property, have the gas, cable, water, power and any other services forwarded to your new address.
• If you rent your previous property, give written notice of your move to your landlord.
• Be sure to have your address changed on your driver's licence, newspaper subscription and on any other subscriptions you may have
• Be sure to notify the postal service, garbage collection and any other services you have of your new address.

Thank you!

We hope you have found this presentation informative and helpful. Please contact Bill (D'Canis) Dikianidis or Wendy Easveld if you have any questions or if you are interested in buying a home.
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