Home Buying Process
Moving can be very exciting but it can also be very stressful asthere are so many things to remember to do! Don’t despair, whether youare doing it on your own, asking friends for some help, or hiringprofessionals, here is a quick guide to help you get through the buyingprocess.
Avoid 9 critical mistakes that could cost you thousands of dollars when buying your home!
- Don't "low-ball" your initial offer
Vendors tend to give less of a counter offer (closer to list price), ifthey feel insulted. Understand the current market value of the home,and comparable SOLDS. - Get Pre-approved
A pre-approved mortgage can be done for 90 days for FREE. You canusually negotiate your mortgage rate between 1/2-1% off the postedrates with your lender. - Have your agent arrange a home inspection
A home inspection with a qualified engineer costs about $300.00(approx). It could very well be your best money spent. You want to knowexactly what you are bidding on. - Avoid buying the most expensive home on the street
The most advantageous situation is to purchase the worst home in a goodarea, rather than the best house in the worst area. "Location,Location, Location" is true! - Prepare a down payment of at least 25%.
When you have a down payment that is almost 25% it is usually lessexpensive to arrange a first and second mortgage and save on CMHCinsurance fees. - Arrange an accelerated Bi-weekly payment plan on your mortgage.
On your mortgage, you will save the most money if you opt for anaccelerated Bi-weekly payment plan, or if you double up one payment peryear. This will shorten your amortization periods by over 6 years! - Take advantage of tax credits.
Place up to $20,000.00 per person of your down payment in a short termRRSP to be held for at least 90 days, or until closing. - Try and stretch to the maximum you can afford.
- Be sure to check into your lawyer’s fees ahead of time.
These are separate from disbursements. Ask your agent who will be able to refer you to reliable professionals.
