homebuyers’ help
Real Estate Resolutions for 2014 // Kara Kuryllowicz Have you made your New Year’s
If you’re planning to buy or sell a home in 2014, here are a few key resolutions that will help with a smooth transaction. To preempt the likelihood of unpleasant surprises, astute homebuyers should begin the financial education, preparation and assessment process the moment they start contemplating a purchase. Resolutions?
tips for buyers
| Have Equifax, TransUnion or another credit reporting agency pull your credit report. If necessary, you
2 | Crunch the numbers! Can you afford it? Is this the right decision for you? Canada Mortgage and Housing Corp. (CMHC) offers tools at cmhc.ca to help you calculate your net worth, current household budget, monthly debt payments, and how much you can afford to spend on a home purchase. Plan on a down payment of at least five per cent. However, your affordability assessment may indicate you need a larger down payment or need to reduce the price range you were considering for your purchase. 3 | Get your mortgage and financing documentation in order. At the very least, lenders and mortgage brokers will require documentation that proves your personal information, your net worth, income, employment, the amount/source of your down payment, and your ability to pay the closing costs. Closing costs generally range from 1.5 to four per cent of the purchase price and your lender may provide a loan to cover those.
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can commit to improving a poor credit rating by paying off creditors and loans before applying for your mortgage.
| Get pre-approved for a mortgage to determine the amount you can afford based on the lender’s review of your finances. This will also provide written confirmation of the interest rate that will hold for around 90 days.
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| Search ads for homes in your desired location and price range with your preferred features. (You’ve already got a copy of New Condo Guide, so consider yourself a step ahead!) Visit presentation centres, and explore new communities in person to get a feel for what living there will be like. 5
6 | Find a reputable home builder. Ask friends and family for referrals, visit presentation centres, do some research online, and check with your local home builders’ association for a list of builders and reviews.
Astute homebuyers should begin the financial education, preparation and assessment process the moment they start contemplating a purchase. 016 new Condo Guide january 4 - 18, 2014