Planning On Buying A Home This Spring? Part 2
… Continued from Part 1
So you are mentally prepared for dealing with the stress, have a suitable team of professionals, and have your finances in order. Now you are ready to go on to the next steps. This is not a complete list but includes some things to consider.
1. Get familiar with the paperwork. Buying Toronto real estate is a competitive sport. You need to know what you are doing, independent of the professionals who will work with you. Do a dress rehearsal before getting out there with your realtor to find a property. Read a standard purchase and sale agreement. Get a mortgage pre-approval from your mortgage broker. You will need insurance. Preparing to read condo documents is a special joy that I won’t spoil for you.
2. You need to understand the prices in your market. Rather than bouncing back and forth between trusting your realtor and trusting your high school best friend who has a cousin who used to be a real estate agent in Florida, arm yourself with a little knowledge. You will likely become involved in lightning-fast decisions and late-night negotiations.
3. Are you ready to move? In all the hubbub and excitement, you may have forgotten that you are going to move, downsize or upsize! Make time to do some planning for your house move. When you picture yourself in a new home with your stuff, you will make some decisions about the kind of home you should buy.
4. Here in Toronto, it has become somewhat quaint and old-fashioned to talk about home inspections, mortgage financing conditions, and other attempts to be careful about your home purchase. The housing shortage has become so great and home purchases so competitive that a lot of buyers are completing their purchase and hoping for the best. Do your best to protect yourself but be realistic too.
5. Some options that you can control involve buying some insurance for you and your new home. You can buy insurance that includes coverage for major household features such as foundation, roof, heating, and cooling. If you were unable to do an inspection before purchase, do one immediately after you own the home. This can protect you from misrepresentations from the sellers and also unpleasant surprises (a furnace that is just waiting for a freezing January day to malfunction). The other essential insurance to buy is to cover your mortgage payments in the event you are unable to do so. Ask your mortgage broker or insurance agent for more details.
Good luck and all the best with your new home!
Dominion Lending Centres – Estate Mortgages Inc.