Jackie Lucas
Sales Representatives
PH: 905-855-2200
Email

Real Estate Office
1697 Lakeshore Roard West
Mississauga, ON

DETERMINE HOW MUCH YOU CAN AFFORD

Set a realistic budget for yourself. Based first upon your income, decide how much you can really afford to invest for your monthly payment. Most financial institutions suggest that your payments be no more than 28 percent of your total monthly income. This is called your GDS, or Gross Debt Service ratio. A good Realtor will help you determine this if you are unsure.

GET PRE-APPROVED

A lender will qualify you for the loan amount that you want. A lender can let you know what specific loan programs would be best for you. He can also help you understand terms like GDS and TDS (gross debt service and total debt service). By looking your current income and your credit history, your banker can help you understand your budgetary restrictions.

To be sure that you can afford that dream house make sure that you get pre-approved. In the approval process, all of your documentation is completed and submitted to an underwriter. The pre-approval that you receive is an actual loan commitment from a lender - your guarantee of loan approval. You will be armed and ready to negotiate for that dream home.

In summary, you can save yourself time and heartache by meeting with a lender before you start your search for a home.


WHAT ARE YOU LOOKING FOR?
Figure out what your wants and needs are. Not just yours, but if you are buying with a spouce or family member ensure that before meeting with an Agent you both are on the same page.

BEGIN BY WRITING A LIST:

- living requirements (i.e. how many bedrooms);
- size, style and age range of home
- features and number of finished rooms required
- what you're bringing with you from your old house; i.e. size of bedroom & dining room furniture will determine room size..
- how close to schools, shopping and other services;
- the size of down payment you can afford; and,
- price range.

It's important to be realistic when you're thinking about a down payment and setting a price range. You don't want to be saddled with something you can't afford. At this stage, it's a good idea to talk things over with a real estate sales professional.


MLS® SYSTEM
Most boards have their MLS® systems on computer. By sitting down at a keyboard, the REALTOR can key in your needs, choice of neighbourhoods and price range and immediately come up with a list of suitable properties.

There are other things to look at, as well. If you don't have time or don't feel comfortable doing it, home inspection services are available for a reasonable fee.

FIND A HOME THAT MEETS YOUR NEEDS

Some tips for successful house hunting:

Keep a record of all your research data. Write down comments about the homes that you see. Keep track of your likes and dislikes.

Make sure that your agent is aware of your time schedule and your expectations. Do you like to look at one or two homes in a session etc? Discuss all of this with your agent.

Tell your agent about any homes that perk your interest and those you'd like to know more about. Include the homes you notice as you travel around the area yourself or those you see advertised in the newspaper.

If you want to spend time driving around looking at homes for yourself, ask your agent for a list of drive-by homes, which you can consider first from the outside.
Your agent can than make appointments to show you those that appeal to you.

Express your likes and dislikes to your agent after you see a home. Honest communication is essential. Remember that the homes don't belong to the agent! You must be frank about your likes and dislikes to enable the agent to do the best job for you.


MAKING AN OFFER

In the offer, you are:

- saying how much you're willing to pay;
- suggesting a closing date;
- proposing a set of conditions; and,
- stating when the offer expires.

At this time you'll present a deposit, along with your offer. An appropriate deposit will show your good faith to the seller. The seller's agent is bound by law to bring all offers to the seller's attention.

After your offer is accepted and all the conditions are met, the offer becomes binding on both sides. If you walk away from the deal at that point, you may lose your deposit. You may also be sued for damages. Therefore, make sure you understand and agree with all of the terms of the offer before signing. This is why it is always important to use a Realtor when buying or selling a property.

Conditions
Most offers carry some kind of conditions, which have to be met before the sale is complete. Some common types of conditions are:

• you getting a suitable mortgage (include the amount, interest rates and any other figures you feel important)
• you selling your current home (the seller may continue to look for a buyer, but will give you the right of first refusal)
• the seller providing a current survey, or a "real property report," showing the location of the house on the property owned by the seller and that there are no encroachments
• the seller having title to the property (your lawyer will check this out when he or she conducts a title search to see if there are any liens on the property, easements, rights of way or height restrictions)
• if there is a septic system, the seller should have a health inspection certificate, stating the system meets local standards
• if you still have any doubts about the home's safety and construction, you may wish to make the purchase conditional on an inspection by a qualified engineer
• any inclusions (we've talked about this earlier -- basically, what stays and what goes)

The seller may counter your offer, by changing the conditions, price or both. Look at the counter offer in terms of what you're looking for in a new home: how does it fit in? And you can, of course, always counter the counter offer.

CLOSING THE SALE
Before the house can formally change hands, there are still a few things to do. Here's what to expect on or before closing day: