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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 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.
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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