Have you been thinking of purchasing a home but the whole process seems overwhelming and perhaps impossible? Where to begin? As a Buyer's Agent, I will take the time to listen and together we will set the stage for your successful home purchase. Please, feel free to give me a call at (902) 223-1399, to set an appointment for me to answer your questions. There is no pressure for you to purchase a home, just an opportunity for you to get started! To receive a free "Home Buyer's Resource Kit", call or send an email to cdeschamps@sutton.com!
Tips On Buying Your First Home
- 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 me! I am a trained professional with knowledge about local conditions and the housing market in general. Through the Multiple Listings Service I have access to virtually every property listed for sale in the province. I 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 Nova Scotia Real Estate Commission and member of the Nova Scotia Real Estate Commission, I 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 me 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), deed transfer tax, property taxes, GST (if purchasing a new home), and if heated by oil, an oil adjustment.
Costs and Considerations when Buying a Home
"Home is an invention on which no one has yet improved."
- Ann Douglas
In the excitement of beginning a search for a home, many people jump right in without considering all of the elements that make a home truly right for them. I often think back on my first home purchase and shake my head! It is a complicated and personal process. An unsuitable choice can be costly in many ways - you could lose money, waste time and effort relocating, or even put your family's health in danger. The following are some things to consider when identifying your ideal home and planning a successful purchase.
Choosing a Neighbourhood
Remember that you can renovate a house but neighbourhoods take years to change and there's no guarantee they'll change for the better! On the other hand, if you really love a certain part of town but it's out of your price range you may want to consider buying a less-than-perfect home then doing renovations. They can be quite expensive so try to make improvements that will be reflected in the value when you sell. These renovations have been found to have the greatest payback: kitchen 70%, bathroom 68%, interior painting 65%, exterior painting 62%.
Tips on choosing a suitable neighbourhood:
- When you find a locale you like, walk around it. See what it's like from street level.
- Are the people friendly?
- Are there stores and recreation facilities nearby?
- Contact the local school board if you have children. Do local schools provide good education opportunities? If applicable are there private/religious schools?
Figure out what you can afford:
Consider how much you currently need to live on and how much you actually have leftover every month. People have a tendency to create budgets that look nothing like reality - when we should have $400 left over, for some reason we only have half that.
Consider these basic costs of buying a new home:
Financing
The sort of home you can afford depends on several things:
How much you have saved
How much you earn
- Past earnings
- Your credit rating
The past has a way of haunting new homebuyers. If you are concerned about your credit rating you can usually get a free copy of your rating report from your local credit bureau. Normally all that's required is a couple pieces of photo identification.(see my direct link to Equifax Canada and the Credt Counselling Services of Atlantic Canada, Inc. on the left hand drop down menu). Remember, a few late payments or disputed bills can besmirch your record. Try to pay everything on time and don't have more than two credit cards. A bad rating can spell trouble getting a mortgage or you end up paying more for your mortgage as a form of insurance to the lender.
Pre-Qualification
This refers to documents from a bank or other lender indicating that you have the financing to back up your offer on a house. Pre-qualification is free and most lenders are happy to sit down with prospective buyers and figure how much they can afford. Having an accurate idea of price range will save time in the bidding process. If there are several people making offers on your dream home, being pre-qualified can make your offer more attractive since financing is not in question. It is important to note, however, that lending institutions will base their final decision about a mortgage on ability of the buyer to service the debt as well as the property. Most lenders state that the two components go hand in hand - the buyer with the ability to repay a mortgage and the property as security in the event of default on payment.
By taking all these points into consideration, you can worry less about the process of buying and get busy finding your ideal home!
