need help: tips/procedure buying a house

[m_a_t_r_i_x]

Guys/Gals,

Can i get your input/s on steps for me to take in buying a house...im sure most of you guys have gone through this and any infos/links/website/s related to this will be alot of help to me.

i thought of asking you guys first before going to the bank for pre-assessment. im thinking spring/summer next year to move coz im expecting another child.

i \'might\' consider giving up my Mz3 to make use of whatever funds to get a house and considerng my car insurance is still on the high side due to no. of yrs that ive been only driving here in canada...that will be a sad day to me if that will happen but im willing to give it up....well family first...

i juz want to get ahead of the game and prepare for this big decision...

thanks in advance!

[SABIO]

New house....

or a house a couple years old....(or 10 - 15 years old)...

0% down? 25% down...

[Mica3SGT]

Go to your bank and ask to see a mortgage specialist. They will determine your current financial state and the maximum amount you will be eligible to borrow.

This will determine your pricepoint when looking for a house. Talk to your bank about their interest rates and your payment options, and ask them about first time buyer programs.
You should get a half point off the going mortgage rate as a loyalty program - if not - go to another financial institution and get their best rate.

Get a lawyer to cover your closing costs and to review any sales contract BEFORE you sign. Pick up some real estate publications in your area as well as your local newspaper to review what is being advertised. Don\'t purchase any book or publication on how to buy a home - these are all available free and your real estate agent/financial institution/friends can point these out.

Consider new home developments with closings in the spring and any incentives they are willing to offer to sign a deal(ie. free appliances, lower rates, free upgrades, ect.)

If you are considering to buy a resale property - interview several real estate agents and pic the one you feel most confortable with and who understands your situation and your wants and needs. Schedule a look through the MLS listings to determine the area and the type of house you are interested in. Have the real estate agent coordinate a day where you can view these properties and compare features with the asking prices.

Buying a home is a big decision - make sure you cover all your incidentals including land transfer fees, mortgage insurance, legal fees, moving expenses and costs of renovation to allow yourself room to make a smooth transition into your new abode. Good luck!:)

[m_a_t_r_i_x]

Mica3SGT,

Thanks bro, I appreciate this information , I even made a hard copy of your reply so I wont forget all the salient things you pointed out.

Looks like it will entail a lot of work and headaches making this into reality from the things you have mentioned. Atleast you have given me the general picture of the process...

Sorry for being ignorant, not familiar with the term MLS? what does it mean?

Sabio,

To tell you frankly Im still undecided, since i havent consulted my bank regarding my allowable loan amount as stated my Mica3GT, but most likely I might settle to a couple year old Townhouse...

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If there are other inputs from other member/s i will appreciate it guys....I just need to know the details, so it will help me get a fair deal...and in a way this thread will be guide for other member/s here who will decide later in the near future to get their own place....

thanks again

[Candyman]

If you are looking for an existing home, www.mls.ca. You can specify the area, type of home you\'re looking for. This helps you look at all the homes available, real estate agents may not know exactly what you\'re looking for. When I bought my first condo, I found it myself here. I just told my real estate agent which ones I wanted to see, & she arranged all the appointments.

As for financing, you have two options. If you have a good relationship with your bank, go see them (they can beat any rate a broker can give you, IF they want to). Otherwise go a see a mortgage broker (most offer Firstline mortgages because they can buy down the rate). Don\'t be afraid to pit them against each other, they will fight for your business. Get them both to get a pre-approval for you (this is to make sure your credit bureau is all in good standing & confirm how much you qualify to buy).

I used to be a mortgage broker, so if you have any specific questions about financing, send me a PM. I can tell you the ins & outs of mortgage options.

Candyman

[Mica3SGT]

MLS = Multiple Listing Service. These are properties with their listing information available across the GTA or to other parts of the country. Most often, buyers can come from other cities or provinces and this service provides information for buyers looking outside their immediate geography. If you were looking for property in Newmarket and you were living in say Scarborough - you would be able to see thise properties in Newmarket that utilized this service. You could also look at areas or neighbourhoods within a city. Typically, A MLS listed property pays more to the agent for this extra coverage. The MLS books come out frequently and your realtor can show you the issue which corresponds to the area you wish to search. www.mls.ca

[wab8611]

well my mom is a mortgage broker... so she could possibly help

[m_a_t_r_i_x]

thanks candyman, your comments are duly noted.....

wab8611, ill check with my bank first within this week and ill pm you if i need a mortgage broker...tnx

Mica3SGT..thanks again for your supplementary infos....

[Cardinal Fang]

All good points.

I\'d just like to add that you still need to be careful when a Bank or and other lending institution determines the amount you CAN borrow. When I went to determine how much I was eligible for I was astonished at how much the Banks were willing to lend me. In my opinion it was far too much debt to take on.

Just because they say you can afford it doesn\'t necessarily mean you should. Have a close look at your expenses especially if you have a child on the way. Congratulations by the way and say good night to a good nights sleep.

[Jeff-TheBiz]

Me and the Mrs just moved to Newmarket in March to a new house.. I didn\'t care to much for mls, i liked New in Homes (www.newinhomes.com) it allows you to browse and such but all are new homes, and you can seperate by cost, builder etc..

We looked at over 200 floor plans before we found the one we liked... go figure, we are looking again now..

[Whos ur dadd]

Although there are potentially serious side effects of biting off more than you can chew, I am a firm believer that you spend as much as you can on your house (drive a crappier car if you must) as it is a long term investment. Or, you\'ll end up like The Biz and be movin\' in a year ;)

What a pain it is to move...

[SIM SIMMA]

I totally agree... buying the house is a fun process at times... looking for what you like... but it\'s the move that sucks.

I almost just want to buy all new furniture so we don\'t have to move anything. Too bad I can\'t afford that. We did pay a little more for our place.. but I guess it was the price we had to pay for living in North York. I think in the long run it will be worth it as the value should only go up.

There are pros and cons to buying new or resale. I just bought a new townhouse in North York. My house closed a month ago and I still have not moved in... why? because the damn builder has been dragging their feet on finishing certain things. I didn\'t have one bathroom complete in the house. If one had a sink it did not have the shower.. if it had shower... no sink... headaches!

Once that house is finished... I have to move... ugh. But once I finish all that I should be happy. I hope. It\'s all about location... so they say.

So many factors in buying house. Do you want lot size? detached? location? new? old? Lots of decisions! Can be overwhelming but can also be lots of fun.

Good luck with your choices.