A Smooth & Successful Closing Day

Whether it took you a year to find the perfect house or the entire transaction was only the span of a month - closing day is coming up. Here are some things to remember as the day approaches so that everything can run nice and smoothly.

Things to get ready for the purchase

The Mortgage. Make sure the all of the payment details have been arranged and that all necessary paperwork has been signed (after a thorough examination of the fine print). If you haven't done so, at least the day before closing, set an appointment with your mortgage provider representative. If you are thinking about buying mortgage life insurance, check first - if you have other life insurance - if you're already covered. For those who made a less than 20% down payment, they will require mortgage default insurance, which can be paid upfront or combined with mortgage payments. Canada Mortgage and Housing Corporation (CMHC) and Genworth Financial are two such providers.

The Deposit. A no-brainer perhaps but you'll need to make the funds available for paying the down payment. Yes, all that hard work scrimping and saving is about to come to fruition. Those assets need to be made liquid before closing day of course. If you are a first-time home buyer using RRSP funds for the down payment, remember to check well in advance how long it takes your bank to make the transfer.

The Lawyer and the Legalities. You'll need to meet with your real estate lawyer before the closing in order to go over all the final details, such as the final numbers and conduct a review of the mortgage terms, as well as all documents pertaining to ownership of said property and the conditions of purchase in preparation of signing the papers. The lawyer will also provide the deed, which as you may know, is the legal document which proves ownership. When the deed is signed by both the purchaser and vendor, the property becomes registered under the name of the purchaser and has been legally transferred in ownership.

Preparing for home ownership!

The Move. It's going to be a lot of work, I'm not going to lie to you. Even if you decide to go with professional movers, you'll still have to sort through what you want to keep, throw out or donate. For helpful tips and checklists, check out Zoocasa's Moving Tips Centre.

The Setting Up. Although it will be part of the moving process, you need to plan for set up of utilities, etc. for your new home. Once you have all your dates in place, call your providers to set up appointments (if necessary) to have your cable, internet, phone, etc. installed or activated. If you need to switch or open a hydro account for the new home, make sure you get that squared so there's no mix up of unpaid fees by the previous owner.

The Home Insurance. If you have insurance, it's a good idea to call (if you haven't done so already) to update the changes and go over your policy; you also want to make sure everything is covered in the upcoming move.

What are the advantages of an hiring agent versus selling privately?

Zoocasa Ask the PROS Question of the Week:

"I am thinking about selling my home. I am thinking about doing it privately. I see many realtors on this site bashing private sales and phrases like "people are forgetting the true value of an agent" but I have yet to find an answer as to what those values are?"


This week's featured answer:

Are we "bashing" private sales or perhaps giving you food for thought about why it may not be the best plan to go it alone?

Our role as realtors is to maximize the return for our clients while protecting their interests. It includes many intangibles that a private seller may not give any consideration to.

However, these intangibles often in the end provide a return that far exceeds the Seller's expectations. If you have extraordinary knowledge about the industry and what it takes--go for it and I sincerely wish you good luck.

If on the other hand you use professionals in virtually every other significant aspect of your life, why do you want to take a shortcut with the largest single asset you own? Yes, the commissions are significant. And thousands of us make a good living collecting them. Do you think that would be the case if we were not proving our worth to our clients?

As I always say: "The right agent does make a difference."

See the original post and get more real agent answers to this question.

Thinking about Buying?

Now that you've started thinking about buying your first home it may be a good idea to figure out if it's actually the right time for you. Perhaps like most Canadians, it's always been a question of when and not if; you grew up in a large suburban house and always figured you'd have one like your parents did. Life just wouldn't be the same without a big backyard for the kids to run around in, to host summer barbecues not to mention the pride of home ownership and the fact that you've always heard that it's the best investment to make.

Then maybe it's time to make an appointment with a bank or mortgage broker. Using information such as how much you make, plus credit history, will determine how much you'll be able to borrow - and possibly get you a pre-approval. Want to figure out what your mortgage payments would be like? Visit Zoocasa's Finance Center to use this handy mortgage calculator.

Have you determined that putting the money you're currently spending on rent towards mortgage payments makes so more sense but still feel you need more information about the home buying process? Check out Zoocasa's Before You Buy section to get the low down on home inspections, real estate professionals, moving and more.

Aside from just a financial point of view, you may want to consider the lifestyle changes of home ownership. Forget about building that deck for your backyard just yet - are you in a younger age group and value flexibility (and shudder at the thought of being house poor)? Would you have to give up your annual nice fat vacation that might otherwise go towards mortgage payments? Plus, it may be a better idea to ensure you have enough for a substantial down payment (at least 20% so that you're paying towards the actual cost of the property versus the interest) before buying -- even if it means waiting until later in life to do so.

So, remember that it's not just about a financial planner calculating when it's the best time for you to make a financial commitment -- being the right lifestyle choice, which you're ready to make, could be just as important.

Got more questions you'd like answered by a real estate professional? Visit Zoocasa's Ask the Pros section and get real answers from the pros.

Be a Financially Savvy Homeowner

by Scotia Bank

Before you start thinking about the kind of home you want and where you want to live, it’s a good idea to take a financial inventory.

This stage of the process – saving, budgeting, planning – is not as exciting as choosing a neighbourhood and looking at homes. But it will put you in the best position when it comes time to talk mortgages. Your home can provide a lifetime of memories and financial security, with the right mortgage and financing options that give you the upper hand.

Preparing to buy a home

For most of us, the first step in the home-buying process is to ramp up savings – the more you can put towards a down payment, the less interest you’ll pay and the more you may save on mortgage insurance.

Paying down debt and building a good credit history are also part of this process. The better your credit history, the more leverage you’ll have when negotiating a mortgage.

Now, how much home can I afford?

This convenient mortgage calculator will give you a good idea of how large a mortgage you can qualify for. The calculations are based on some traditional debt-to-income principles:

The first lending principle states that your monthly housing costs – including mortgage payments, insurance, property taxes, applicable condo fees – should not exceed 32% of your family’s gross monthly income. This is also known as the Gross Debt Service Ratio (GDSR) calculation.

The second lending principle states that monthly housing costs plus all other debt (loans, credit cards, lease payments) should not exceed 40% of your family’s gross monthly income. This is also known as the Total Debt Service Ratio (TDSR) calculation.

Pre-approved mortgages

Once you’ve set your savings plan, and determined how much home you can afford, getting pre-approval is the next step. Having a pre-approved mortgage tells potential sellers that you are serious about entering the housing market.

A pre-approved mortgage qualifies you for mortgage financing at an interest rate that is typically guaranteed for 60 days from the time that financing is arranged.

Fast fact: You can purchase a home with as little as 5% down. However, if your down payment is less than 20% of the home’s appraised value or its purchase price, you are required by law to purchase mortgage insurance.


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This article was provided by Scotia Bank. Let us help you get the upper hand on your home financing. Visit scotiabank.com/upperhand for great tips, calculators and more. Want to get more information on your home-related financing goals by email? Sign up here.

Ready to Make an Offer?

Nowadays it seems like can do almost everything online when it comes to real estate - find a good agent, check out listings, use online mortgage calculators, and much much more. Unfortunately you can't buy a home online as easily as you can a new pair of shoes. Don't be a lazy shopper - see what's out there and get all the important info you need before you make the decision to put in an offer on a property.

Do Your Homework
So maybe you can't just buy a house with the click of a mouse but you can definitely window shop. Use the internet to check out listings (Zoocasa is great for checking out listings in the context of their neighbourhoods, plus Zoopraisal™ tool lets you get the approximate value of a property). By seeing what's out there, you have an idea of what you like and dislike and most importantly what you can afford. Once you have compiled a wish list, give your agent the perimeters of your home search and he/she can include some alternate possibilities outside your "dream house + neighbourhood". You'll start to see what's out there, compare homes for sale and find out what which neighbourhoods could be on your "maybe" list. Why not drive around those areas once you've decided some possibilites? Get a good feel of what it would be like to live in that area. Where's the nearest grocery store, schools, library, etc.? These are factors that will weigh in on your final decision.
 
Score Top Marks?
Don't just take the agent's say so on the conditions of the home - get a professional, reputable home inspector (be sure to check out the home inspector's credentials). You'll want to know everything about the property before making any decisions. Use this handy checklist and make notes. Has the house been renovated? Was it by a qualified, licensed contractor? Will it need future repairs on its plumbing, windows or a new furnace? Get to know what kind of house it is, how old it is, what the deed restrictions are, etc. Think about how long do you plan to live there; it's never a bad idea to evaluate the resale potential of the property.

A Good Final Once Over
There's usually a standard contract that real estate offices use, however your contract will of course be tailored to the conditions of the particular house and situation. Remember, it's important to go over the offer with your real estate agent and lawyer to ensure that all considerations have been met. They may have made hundreds of deals before yours and understand all the clauses, schedules and such but make sure that you do too. All of that homework you did before researching listings should have gotten you a leg up so you shouldn't have to face any surprises.

The A+ Team
All those involved in your making your offer: your sales rep, lawyer, lender and the closing agent, not to mention "you", the buyer, should check the progress of the transaction on a regular basis. That way if anything comes up, you can get a jump on resolving any issues asap. The same people who followed the offer so closely will help you with the "settlement" or "closing", which is the day you become the legal owner of the property. In case any issues arise during the last stages of the transaction, you should be able to trust each professional to ensure that things run smoothly or get resolved quickly.