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If you have
owned a home before then you have a good basic knowledge of the
intricacies involved in buying a house. The basics have remained
the same but there have been a lot of recent changes to the processes
so please take the time to re-educate yourself. Below are a few
tips to help you along the way to buying your next home.
- Join the
Mortgages In Canada Discussion Group. Not
only will you learn a lot just by listening to the group but
you can ask as many questions as you want anonymously.
- Get
a pre-approved mortgage. This will help you determine
how much of a mortgage you qualify for and will allow you to
explore different financing options that will help you save
money on your new purchase. Issues to discuss at this point
are penalties to get out of an existing mortgage, porting vs
assuming a mortgage, current mortgage rates and minimization
of fees. You can do all of this through your current bank or
through a mortgage broker.
- Find
a good lawyer. I know this is an oxymoron but you should still
TRY to find one. Find out what they will charge you to act on
your behalf. Many of them will not be very specific about their
fees so be persistent. Typically they will charge a fee + disbursements.
The disbursements add up very quickly so get an estimate of
the total cost of their services.
- Find
A Good Real Estate Agent. You may need to deal with an agent
for the sale of your existing home and the purchase of your
new home so make sure you choose someone you can work with.
Negotiate the commission structure on the sale of your current
home. No one should be paying 6% commissions in this market!
- If
you are buying a resale home ALWAYS have a home inspection completed!
For a few hundred dollars a home inspector will view the home
with you and point out any shortcomings of the house. Buying
a resale home is like buying a used car...Caveat Emptor.
- If
you are buying a new home from a builder ALWAYS have your lawyer
review the Offer To Purchase before you sign on the dotted line.
Builders are notorious for burying extra costs into their offers.
Your lawyer will point these out to you and quite often you
can go back to the builder and negotiate these costs out of
the offer.
- When
you are buying a house act like you are at a garage sale. Everything
is negotiable! This is a great time to haggle, you can save
yourself thousands of dollars without much effort.
- Consult
a mortgage broker about your financing needs! A good broker
will save you money and help you avoid the headaches involved
in dealing with your bank.
If you follow
some of these basic tips you are bound to enjoy your new home!
Good luck!
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