Things to know when buying a home

How to Get into Today's Market!

What is a pre-approval?

A pre-approval is the first step to purchasing a home, you should seek professional assistance from a mortgage broker who can shop around for the best deals vs. your bank who will only offer you their services. Now sometimes your bank might have the best deal, but how will you know if you never ask? So it’s best to shop around for other lenders, this doesn’t hurt your credit score because this shows you are being a responsible consumer. Now if you were to shop for credit cards, this is not a great thing! You will definitely see a hit on your credit score for at least 3-4 months. Just be careful, it’s normally a soft hit but don’t seek credit if you shouldn’t.

Understanding what you're signing!

A Buyer Representation Agreement is one that outlines your relationship with the Co-operating Brokerage and your agent. This helps you understand that the brokerage and your agent have the highest legal obligation to work in your best interest. In return, you are expected to show the same degree of respect by acknowledging that you wish to work with this agent who is licensed to represent the brokerage outlined. In simple terms, it means you have to go with them as an agent if you decide to buy a house they showed you or any home purchased without your agent present. Since as a Buyer, you do not pay the agent, they are only guaranteed their commission through the Agreement of Purchase and Sale and accompanying “Confirmation of Co-operation” which outlines to the Seller and instructs the lawyers and Real Estate brokerage offices which agent is being paid commission. I am sure you can understand if an agent took time to show you properties, then you use another agent, this wouldn’t be fair to the realtor who could have spent their time assisting another client instead. So do not sign multiple Buyer Represenations with Agents because then you could be liable for commission.

How much do I have to put down to buy a House?

This is a great question for a mortgage broker, which I will forward contacts of trusted brokers I work with to make sure you get the best interest rate and mortgage conditions. So what I can say is, there are a lot of factors this is dependent on. One of which is your credit score, down payment, income history and buyer status. The better your credit score and income, the better your chances of only needed to put 5% of the purchase price down. Of course, the more down payment you have saved, the better because that means less the need to apply and be approved for the mortgage amount.If you want to bypass the CMHC insurance, than you are expected to put 20% down.

New to Canada? There are mortgage products for you.

It’s possible. There are some new programs out that can help you if you have or don’t have your permanent residence status (PR). This would be dependent on your credit score, any debts, down payment amount and of course income. Normally for new to Canada without a PR, you will be required to pay a larger down payment, around 35%. Now in London, Ontario and surrounding area, there is no foreign tax, so this is a good thing for you.

If you have your PR or proof that you are on the way to applying or receiving one, you may be eligible to purchase a home! We will need to have you sit down with a mortgage broker to review your account and we can work on options to get you started. If you wish for your realtor to be present, I can sit in and help explain processes and work with the Mortgage broker to discuss my expertise in the housing market in relation to the Mortgage broker’s expertise within the mortgage industry. We can both work together, right there with you to help you understand the market and what your real options are going to be, in real time.

Get Connected! Elavate yourself!

Want to learn more about getting started, have a million questions and want answers? Sign up for the free personal investment program, ELAVATE, created by Rayna Elabed to help all her clientele with their own unique positioning to capitalize on the market. It's understanding that buying your first home can be stressful, so Rayna Elabed has made that even easier for you through the new and free program ELAVATE! Rayna Elabed will help you understand that real estate is more than just a home, it's your tool and she's the resource. It's totally free, no hidden fees or obligations, you just got to be willing to learn and put in the work. Sign up today, hurry slots are limited as this program is a one-on-one conversation and there's only one Rayna Elabed.