Frequently Asked Questions
Question1. Why should I work with a Real Estate Agent?
Answer1. It is a very good idea to have a real estate agent. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate agent will be well-acquainted with all the important things you'll want to know about a neighborhood you may be considering...the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. He or she will help you figure the price range you can afford and search the classified ads and multiple listing services for homes you'll want to see. With immediate access to homes as soon as they're put on the market, the real estate agent can save you hours of wasted driving-around time. When it's time to make an offer on a home, the agent can point out ways to structure your deal to save you money. He or she will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. The best part is that you don't have to pay the agent anything! The payment comes from the home seller - not from the buyer.
Question2. Why should I buy, instead of rent?
Answer2. You'll love the feeling of having something that's all yours - a home where your own personal style will tell the world who you are. A thriving vegetable garden in the backyard, a tiled entryway, a beautiful kitchen...when you own, you can do it all your way! But there's more to owning a home than personal satisfaction. For over half the number of years you'll be paying your mortgage, this adds up to hefty savings at the end of each year. If you rent, you write your monthly check and it's gone forever. Another financial plus in owning a home is the possibility its value will go up through the years.
Question3. How much money will I have to come up with to buy a home?
Answer3. Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs:
Deposit - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house;
Down Payment - a percentage of the cost of the home that you must pay when you go to settlement;
Closing Costs - the costs associated with processing the paperwork to buy a house.
Question4. What are the services for Customers and Clients?
Answer4.
Customer Service:
- Arrange property showing
- Assist with financing arrangements
- Provide accurate information
- Explains Forms and agreements
Client Service:
- Arrange property showing
- Assist with financing arrangements
- Provide accurate information
- Explains Forms and agreements
- Give advice and counsel
- Keep bargaining and financial position confidential
- Negotiate best price and terms
- Print out reasons not to buy
- Disclose all the information that improves bargaining position
- Prepare an offer favorable to the buyer
Question5. When I find the home I want, how much should I offer?
Answer5. Again, your real estate agent can help you here. But there are several things you should consider:
1) Is the asking price in line with prices of similar homes in the area?
2) Is the home in good condition or will you have to spend a substantial amount of money making it the way you want it? You probably want to get a professional home inspection before you make your offer. Your real estate broker can help you arrange one.
3) How long has the home been on the market? If it's been for sale for awhile, the seller may be more eager to accept a lower offer.
4) How much mortgage will be required? Make sure you really can afford whatever offer you make.
5) How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house.
Question6. What if my offer is rejected?
Answer6. They often are! But don't let that stop you. Now you begin negotiating. Your agent will help you. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that wouldn't normally be expected. Often, negotiations on a price go back and forth several times before a deal is made. Just remember - don't get so caught up in negotiations that you lose sight of what you really want and can afford!
Question7. What do I need to take with me when I apply for a mortgage?
Answer7. Good question! If you have everything with you when you visit your lender, you'll save a good deal of time. You should have:
1) Social Insurance Number for both you and your spouse, if both of you are applying for the loan.
2) Copies of your checking and savings account statements for the past 6 months.
3) Evidence of any other assets like bonds or stocks.
4) A recent paycheck stub detailing your earnings.
5) A list of all credit card accounts and the approximate monthly amounts owed on each.
6) A list of account numbers and balances due on outstanding loans, such as car loans.
7) Copies of your last 2 years' income tax statements.
8) The name and address of someone who can verify your employment. Depending on your lender, you may be asked for other information.
Question8. In addition to the mortgage payment, what other costs do I need to consider?
Answer8. Well, of course you'll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your real estate broker will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues. You'll definitely have property taxes, which normally are rolled into your mortgage payment. Again, your agent will be able to help you anticipate these costs.
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