Whether it is your first or your fifth time, buying real estate is a big decision....not only because it may be the single largest financial transaction that you will ever do, but also because how the outcomes of that decision will impact the rest of your life and that of your loved ones. Your REALTOR can help you navigate the complexities of selling or buying a property. A REALTOR can anticipate, understand and help you make informed financial decisions.
Here are the 7 steps to buying real estate. Understand that a REALTOR can help you with all of these. We are trained to do this and most of us do this full time. This is what we do.
Assess Financial Readiness
Assess your current financial situation including your present household budget and your annual income to determine how much you can qualify for a mortgage.
Consider Mortgage Options
Do not be afraid to negotiate interest rates and mortgage terms with different lenders. As your REALTOR, we can help you do that too. Lenders are offering you a product, and talking to more than one lender helps you make an informed decision. Only talking though. Please do yourself a favour and don't go applying everywhere.
Mortgage Default Insurance
When you buy a home with less than a 20% down payment, the mortgage needs to be insured against default. This type of insurance protects the mortgage lender in case you are not able to make your mortgage payments. It does not protect you.
Research Government Programs
The federal government has assistance programs to help homebuyers. Research government program requirements to see if you are eligible. Government programs can change over time. For the most up-to-date information, refer to Service Canada’s website: www.servicecanada.gc.ca.
Finding the Right Property
Finding your perfect property does not have to be a long process. Based on your needs and goals, your REALTOR® will help identify the right type of property for you. Please make sure that you are brutally honest about what you want. It's like going to a doctor's office. Incorrect description of symptoms (in this case your current situation and goals) will result in misdiagnosis (buying the wrong property under wrong terms) and harm you. Check out www.howrealtorshelp.ca to see how your REALTOR® can make the home buying process easier for you!
Making an Offer
Once you finally find what you need, don't wait or second guess yourself. Just do it.
Closing and Related Costs
Closing costs are the legal, administrative and disbursement fees associated with buying a home. Understanding these fees will help you budget more accurately. Remember these are additional costs over and above the price of the home.
In closing, a properly planned out process with the right professionals will net you more in the long run. Don't lose sight of the big picture and try to do it by yourself. Mostly, it doesn't work out. It's like going to Las Vegas. Once in a while someone will hit the jackpot but the majority will always lose. That is why Las Vegas is still here. You don't have to go at it alone. Get professional help. Get a REALTOR.
Formally educated as an Architect, Jagdeep Singh is Toronto REALTOR™ consulting on both resale real estate and new developments. Powerful Local Focus on Real Estate with a Global Perspective™
This post is for information purposes only. Though effort has been made to ensure the accuracy of the contents, the reader is advised to verify the information independently. This post may contain information that is privileged, confidential and exempt from disclosure under applicable law. The reader is not allowed to reproduce it in any medium without the author’s prior written permission. Jagdeep Singh is a broker with Century 21 Heritage Group Ltd., Brokerage -- (416) 798-7133 -- which is independently owned and operated. This message is not intended to solicit parties currently under contract.