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A Special First Time Home Buyer Information Page...See below Topics: A house is a place to eat, to sleep, to park your car and to store your stuff. It would be considered a material possession or an investment. A home is where you feel warm, secure, safe and contented. It's where you live ! Police force & fire station; are they effective and purposefully located throughout the community in the event of an emergency. In addition to community pride, look into what other services are provided. In other words, see how the community measures up. Community services and youth sports; are there activities available for children, teenagers and senior citizens? Amenities like well maintained recreational facilities will add value to your home. Schools; Even if you don't have younger children, potential buyers might. When you sell the property, many families will have concerns of this nature. You'll want to know if the local schools are overcrowded, if elementary aged children always attend the closest school to their home and if there are plans to build new schools. You will also want to talk about the bussing question. Local Community; You will want to be sure all basic stores and services are located nearby, including grocery stores, gas stations, drug stores and convenience stores. You should also have convenient access to local highways and major traffic routes. Within your community you will want the nearby properties to be in a harmonizing style and size. That doesn't mean they should be "cookie-cutters", but rather a mix of properties that compliment each other with each homeowner putting their unique stamp on their own home. You will also want to make sure the street you decide on is not used as a shortcut between two busier streets. You will want your home to be tucked neatly away in the centre of your community. Your lifestyle will largely determine the style of home that you will be most comfortable in. As with many other things in life, trust that inner voice and don't dismiss first impressions. Of course, you would not base your decision solely on instinct, but it can clearly tell you that you've finally found your home. 1. Location counts. You've probably heard the old real estate joke about "location, location, location," but the point still bears repeating. Location is crucial. How far are you really willing to commute to your place of employment? How good are the local schools, shopping centers, public transportation, seniors services and other public amenities? Will your new home be next to a vacant lot or a commercial property? Even a picture-perfect dream home can be a mistake if it's in an undesirable location, and a poor-location home can be a particularly bad choice if you anticipate reselling the home within a few years.
2. Make a list. Do you (and your spouse, if you're married) really know what you need and want in your home? You'll save yourself many hours of shopping (and potentially arguing) if you make a list ahead of time. Zero in on the features you must have, would like to have, definitely don't want and would prefer not to have. Your goal is to find the right home for your family without falling in love with one that doesn't suit your needs. Tip: Start compiling your wish list by thinking about what you like and dislike about your current home.
3. Do your homework. Not long ago, consumers had very little access to information about recent home sales prices, market trends, homes on the market, neighborhood statistics and the home-buying process. Today, all this information and more is available on the Bay East website and throughout the web . Go surfing. Get educated. Become empowered.
4. Get pre-approved for a mortgage. Your top-dollar home price is a function of your household income, your credit worthiness, interest rates, the type of loan you select and how much ready cash you have for the down payment and closing costs, among other factors. Rather than guessing or estimating how much you can afford to spend, ask a lender or mortgage broker to give you a full assessment and a letter stating how much you're qualified to borrow. The true amount may be much more or much less than you think.
5. Use a checklist. Touring multiple homes is a confusing experience for most people. Rather than relying on memory, make notes about the homes you visit. Turn your priorities into a personalized home-shopping checklist and use it track the features of each home.
6. Wear comfortable clothing and sturdy shoes. House-hunting can be tiring, especially if you're relocating to a distant community and want to see a dozen homes in one day. There's no sense in torturing your feet unnecessarily.
7. Be prepared to make an offer. House-hunting can also be frustrating, especially if you know in your heart you're not really emotionally or financially ready to buy a home. If you're not ready, don't put yourself through the exercise. If you are ready, go through a blank purchase contract ahead of time so you'll know what decisions you'll face when you make an offer.
8. Relax. Granted, buying a home is a major life-altering event. But it's not worth making yourself insanely crazy or super-duper stressed. Save time at the end of your house-hunting expedition to unwind, calm your thoughts and emotions and keep the whole experience in perspective. The "new or used" question is one that many home buyers struggle with. Either way has it's benefits, and both have some drawbacks. PRE-OWNED HOME The greatest benefit of a pre-owned home is its mature landscaping and usually mature neighbourhood with the trees being taller and the gardens better developed. But a pre-owned home can carry a hefty bill for maintenance and renovation. If the decor is dated, if the fence is in need of repair/replacement, if the water heater or furnace is about to explode, if the shingles are shot, get ready to spend. A NEW HOME on the other hand, may seem a daunting challenge on the landscaping front, but the money you spend on the yard will be far less than what you'd spend on interior and exterior facelifts. In addition, a new home has a faultless feeling about it. Plus, there is something extremely satisfying about knowing you are the very first to occupy a new home ! Downpayment: How and How Much? [Back] The first thing to do - before you visit showhomes, before you shop for interest rates, and certainly before you start packing -is look at your savings. The second thing you do is call me.......I am a Real Estate Professional and that means I am qualified to help you find the right mortgage professional to enable you to purchase your first home......When preparing to buy a new home, many homebuyers start by searching for their "dream home"...only to find that it's well beyond their means. How much you have available for your down payment and closing costs affects almost every aspect of your home purchase - including how you write your Offer to Purchase as well as the loan program you qualify for. The down payment is the amount of money you put against the purchase price of your home. The minimum requirement can range from 0% down..... to 5% to 25% of the purchase price, depending on whether you choose an insured mortgage or a conventional mortgage. Other Costs to Consider [Back] The costs related to buying a new home extend well beyond the purchase price of your property, and overlooking these expenses can have serious consequences. As you fiddle with numbers, be sure to include the following expenses in your equation: Utilities? (Contact providers of each utility - natural gas, electricity, water & sewer, telephone, cable - to inquire about rates, average monthly rates, payment plans, and the like) Property taxes? Legal fees?(Most builders now include the fee in the home purchase) Moving costs? Window coverings? Furniture? Failing to plan for overhead expenses can really put a damper on the whole "first home experience" and remember it's always best to err on the side of caution when estimating your expenses. Mortgages De-Mystified [Back] Conventional mortgages have the lowest carrying costs because they don't have to be insured against default. Conventional mortgages are available for up to 75% of the purchase price. In other words, they will require a minimum down payment of 25%. For example, to qualify for a conventional mortgage on a $500,000 purchase priced home, you will require a down payment of at least $125,000. Please note: Another break point is 20% of the purchase price. Low Down Payment Insured Mortgages Perhaps you don't have a 25% down payment. Most banks offer insured mortgages that require lower down payments than conventional mortgages, typically 5%, but there are certain circumstances that will allow for 0% down. For example, a 5% down payment on a $500,000 home purchase price, you will need a minimum of $25,000. Bear in mind that because they include a premium for insurance to cover default of payment, insured mortgages have a higher carrying cost. Low down payment mortgages are also called "High Ratio mortgages." There are many more mortgage possibilites and only a Finance Professional can evaluate and anwser your quesitons. Start a log of moving expense receipts (some may be tax deductible). Contact your bank and arrange transfer of your accounts; order checks with new address; clean out your safety deposit box; arrange credit references. Submit change-of-address forms to the post office; mail postcards to friends & creditors; notify subscriptions, cancel services and newspapers. Contact schools and arrange for transfer of student records. Contact doctors and dentists for referrals to new physicians; transfer needed prescriptions, eyeglasses, X-rays; obtain birth records, medical records, etc. For your pets, inquire about regulations for licenses, vaccinations, tags, etc. Change your insurance policies on life, property, auto and medical; notify company of new location for coverage. Organize all important documents in a fire-safe box (some things to include are school records, home purchase/sale papers, will, marriage/divorce papers, pet documents, financial records, stock certificates, social insurance cards, birth certificates and passports). Arrange for hotels, rental cars or temporary housing as needed. 2 weeks before you move: Take a ruthless walk-through to determine what you really want to take. Tag everything else and hold a garage sale, or call a charity for pick-up. Arrange for disconnection or changeover of utilities (gas, electric/water, telephone); get refunds on any deposits. Obtain measurement of the rooms in your new residence or use floor plans to determine where everything will go. Begin packing less-used items; number and label each box, and keep an inventory. Retrieve and return all items borrowed from neighbours, friends & return library books. Clean out cupboards and plan remaining meals so you can pack what you don't need, and don't buy any more perishables than you have to. 1 Week before you move: Make an inventory list of all items going with you personally; keep valuable and irreplaceable items such as jewellery, family pictures, fire-safe box with personal documents and heirlooms with you, not the movers. Confirm arrangements and dates with moving & storage companies. Confirm hotel, rental car or temporary housing accommodations. Disassemble furniture or others items. Check yard, sheds and garage for all items to pack. Inform all friends & relatives of your forwarding address; if your phone service won't be instantaneous, arrange for a temporary voice mailbox. Take pictures of furniture or get fabric samples for anything you will want to reference for colour or decorating before your goods are delivered to your new home. Set aside the vacuum cleaner and required cleaning supplies. Begin making a "Survival Box" for the move, including paper, pens, stamps, envelopes, cellophane & heavy duty tape, scissors, tape measure, paper cups, baggies, paper plates & towels, plastic utensils, facial & toilet tissue, instant coffee or tea, cream/sugar, soap, moist towelettes, drugs, first aid kit, can opener, bottled water, travel alarm, flashlight, small tools kit, trash bags, snacks or drinks, children's games, address book, spare car keys, phone books for the city you are leaving and your destination. 1-2 Days before the move: Clean and defrost refrigerator and freezer. Purchase traveller's checks for trip expenses. Conclude financial matters relating to the sale or/& purchase of your home. Movers or your family should complete packing of all household goods for the move; ensure are boxes are clearly marked. Moving Day: Confirm delivery address, directions and delivery date with the movers. Carefully supervise the move; make sure boxes are clearly marked and your instructions are understood. Clean your house and check entire grounds before leaving. Check thermostat and make sure temperature is set appropriately; make sure all windows and doors are closed and locked, and all appliances are turned off; leave forwarding address, garage door openers and any keys, if agreed to, for the new owners. If your home is going to be vacant when you leave, make sure a relative, neighbour or real estate agent has the keys and how to contact you; also, notify your insurance agent and police department that the home will be empty. Arrival Day: Let family members or friends know you have arrived safely; check in with your employer and real estate agent to confirm itineraries. Make sure all utilities & appliances are on, plus working properly. Supervise moving crew on location of furniture and boxes; begin unpacking necessary basics first like basic kitchen utensils, bath toiletries, etc. Give the kids a job to do by letting them start on their rooms; usually, the kitchen and the kids rooms are the best to set up first, as it helps them feel at home. Finally...relax, order dinner out, and take a long, hot bath. You deserve it.
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