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Are you considering a Real Estate purchase? Put us to work for you!
Our Buyer program includes the following:
• NEW LISTING UPDATES: A great power tool to keep you informed on current and new listings that match your specific search criteria. To start receiving new listing updates via e-mail click "CONTACT US" and complete the brief form including an outline of the search criteria we should use for your property search. Shortly after contacting us you will start receiving new listing updates regularly via e-mail. These are automatically sent to our Buyer clients before the listing reaches the public MLS.ca website.
• TOUR SCHEDULING: We can schedule a complete tour of homes that meet your criteria to maximize your time.
• EXPERIENCED ADVICE: With 14 years of combined experience as Sales Representatives, we can guide you through the home buying process from search to keys-in-hand. Buying a home can be stressful, especially for first time home buyers. Having closed numerous deals over the years we will walk you through the process from picking an area or style of home, to what happens on the day you close. This would include all of the details and conditions required within an agreement of purchase and sale, to arranging assistance with lenders, insurance agents, financial support and home inspections.
• AGENCY: We will outline agency relationships to you and give you
the information you need to make an informed choice. There are four types of agency that are associated with real estate, and an informed buyer will be able to make the right choices if they are properly informed.
Call us to arrange a consultation meeting to review your specific property needs. We will work for you and offer the support you need to make an informed choice on your next home.
Question 1: What price can I afford?
-The amount of cash you have available for the down payment, closing costs and cash reserves required by your lender.
-Your outstanding debts
-Your credit history
-The type of mortgage you select
-Current interest rates
Lenders will analyze your income in relation to your projected cost of the home and outstanding debts. This will determine the mortgage amount you can borrow. Your housing expense-to-income ratio is determined by calculating your projected monthly housing expense, which consists of the principal and interest payment on your loan, property taxes and hazard insurance. The sum of these costs is referred to as "PITI."
Monthly homeowner association dues, if you're purchasing a condominium or townhouse, and private mortgage insurance are added to the PITI. Your housing income-to-expense ratio should fall in the 28 to 33 percent range. 28 percent of your gross monthly income is allotted toward PITI. 33 percent of you gross monthly income is allowed for PITI and all long term debt. Some lenders will go higher under certain circumstances. Your total income-to-debt ratio should not exceed 34 to 38 percent of your gross income.
Question 2: How do I find out about the condition of the home I'm considering?
Also look for settling, sliding or soil problems, flooding or drainage problems.
People buying a condominium must be told about covenants, codes and restrictions or other deed restrictions, if the homeowners association has any authority over the subject property and ownership of common areas with others. Be sure to ask questions about anything that remains unclear or does not seem to be properly addressed by the forms provided to you.
Click the "Links" tab for a List of Home Inspectors in Kingston
Question 3: How low can I consider offering?
1. Is the offer conditional upon anything, such as the sale of the buyer's current house? If so, such an offer, even at full price, may not be as attractive as an offer without that condition.
2. Is the offer made on the house "as is," or does the buyer want the seller to make some repairs before the closing or make a price concession instead?
3. Is the offer all cash, meaning the buyer has waived the financing condition? If so, then an offer at less than the asking price may be more attractive to the seller than a full-price offer with a financing condition.
4. Are there any requests for seller concessions? If so, the offer is not really full price.
What would be considered a good offer will change due to many factors, so each individual house needs to be looked at as a whole to decide where to start. Marco and Rob will help you decide where to start based on the factors above, as well as anything specific to each situation.
Question 4: How and what do I negotiate?
If possible try to learn about the seller's motivation. For example, a lower price with a speedy closing may be more acceptable to someone who must move quickly due to a job transfer. People going through a divorce or are eager to move into another home are frequently more receptive to lower offers. These tips may be found out in many cases as Sellers, and their agents will not willingly give up this information.
Some buyers believe in making deliberate low-ball offers. While any offer can be presented to the seller, a low-ball offer often sours a prospective sale and discourages the seller from negotiating at all. And unless the house is extremely overpriced, the offer probably will be rejected anyway.
Before making an offer, also investigate how much comparable homes have sold for in the area so that you can determine whether the home is priced right.
Question 5: What about my down payment, should I put more or less down, if we can afford it?
It may be more prudent to make a larger down payment and thereby reduce the amount of debt that must be financed. Once a buyer puts twenty percent or more as a down payment on their desired home, they will waive the requirement for mortgage insurance.
Question 6: What is the irrevocability of the offer?
Question 7: What steps should I take when looking for a home loan?
Almost all mortgage lenders prequalify people at no charge. Many of them will even do it on the internet. In order to be pre-approved, an application will be taken. For a fee, your credit report will be pulled, your employment and income will be verified, your checking and savings accounts will also be verified. In other words, all the necessary documentation will be completed in order for you to obtain a loan. The only things remaining will be for you to find a home, obtain an appraisal on it to prove its value to the bank and perform whatever inspections you may want on the property. This process considerably shortens the time frame to closing.
Question 8: Is it possible to negotiate interest rates?
Occasionally some lenders are willing to negotiate on both the loan rate and the number of points. This isn't typical among many of the established lenders who set their rates. Nevertheless, it never hurts to shop around, know the market and try to get the best deal. Always look at the combination of interest rate and points and get the best deal possible. This is reflected in what is called the APR or Actual Percentage Rate.
The interest rate is much more open to negotiation on purchases that involve seller financing. Generally, these are based on market rates but some flexibility exists when negotiating such a deal.
Question 9: Is it better to buy a new home or a resale?
Some people feel that buying into a new-home community is a bit riskier than purchasing a house in an established neighborhood. Future appreciation in value in either case depends upon many of the same factors. Others believe that a new home is less risky because things won't "wear out" and need replacement.
"Existing homes have been appreciating a little more than new homes but every once in awhile they're at the same level and sometimes the new home prices go up a little quicker" according to the National Association of REALTORS® (NAR).
Question 10: Fixer-Uppers - Are they good or bad?
Question 11: Can you borrow the money to repair?
Question 12: Is there a good "return" for my efforts?
You need to give your home every competitive advantage you can especially if you are selling an older home. Before starting your renovations, ask Marco or Rob how to get the best return on your renovation investment. Be aware that some improvements may not increase the value to your home. Before spending a lot of money on your home make sure you get the advice from us.