Before getting a mortgage or any kind of loan, you should always check your credit. According to the law, you're allowed to receive one free copy of your credit report per year. You can do this by visiting www.consumer.equifax.ca/. Scores range from approximately 300 to 850; generally, the higher your score, the better loan you'll qualify for. Don't forget to check your report for errors. If there are any, dispute them. It may help your credit score.
You can calculate how much you can afford by starting online. There are several online mortgage calculators that will help you calculate an affordable monthly mortgage payment. Don't forget to factor in money you'll need for a down payment, closing costs, fees (such as fees for an attorney, appraisal, inspection, etc.) and the costs of remodeling or furniture. Remember that you don't always have to put down 20 percent as your parents once did. There are loans available with little to no down payment. An experienced home loan expert can help you understand all your loan options, closing costs and other fees.
To find the right mortgage lender it’s best to shop around. Get recommendations from your friends and family and check with the Better Business Bureau. Talk to at least three or four mortgage lenders. Ask lots of questions and make sure they have answers that satisfy you. Make sure to find someone that you are comfortable with and who makes you feel at ease.
Once you have the right mortgage lender, make sure you at least get a pre-approval. Qualifications are only a guess based on what you tell the lender and are no guarantee, whereas a pre-approval will give you a better idea of how big a loan you qualify for. The lender will actually pull your credit and get more information about you. However, you could even take it one step further by getting an actual approval before you start home shopping. That way, when you're ready to make an offer, it will make the sale go much quicker. Besides, your offer will look more appealing than other buyers since your financing is guaranteed.
Make a list of the things you'll need to have in the house. Ask yourself how many bedrooms and bathrooms you'll need and get an idea of how much space you desire. How big do you want the kitchen to be? Do you need lots of closets and cabinet space? Do you need a big yard for your kids and/or pets to play in?
Once you've made a list of your must-have's, don't forget to think about the kind of neighborhood you want, types of schools in the area, the length of your commute to and from work, and the convenience of local shopping. Take into account your safety concerns as well as how good the rate of home appreciation is in the area.
Now that you've found the home you want, you have to make an offer. Most sellers price their homes a bit high, expecting that there will be some haggling involved. A decent place to start is about five percent below the asking price. You can also get a list from your real estate agent to find out how much comparable have sold for. Once you've made your offer, don't think it's final. The seller may make a counter-offer to which you can also counter-offer. But you don't want to go back and forth too much. Somewhere, you have to meet in the middle. Once you've agreed on a price, you'll make an earnest, which is money that goes in escrow to give the seller a sign of good faith.
There are many different types of mortgage programs out there, but as a first-time home buyer, you should be aware of the three basics: adjustable rate, fixed rate and interest-only.
Adjustable rate mortgages (ARMs) are short-term mortgages that offer an interest rate that is fixed for a short period of time, usually between one to seven years. After that, the interest rate can adjust every year up or down, depending on the market. These are good for people who don't plan on living in their home very long and/or are looking for a lower interest rate and payment.
Fixed-rate mortgages are more traditional and offer a fixed interest rate (and thus a fixed monthly payment) for a longer period of time, usually 15 or 30 years, though they're available in 20 or 25 year terms. These are good for people who like a predictable payment and plan on living in their home for a long time.
Both fixed and adjustable rate mortgages can have an interest-only payment. What this means is that for a certain amount of time during the loan term, you're allowed to pay only enough to cover the interest portion of your payment. You can still pay principal when you wish, but don't have to if your budget is tight. There is a myth that with interest-only mortgages, you don't build equity. This is not necessarily true, since you can build equity through home appreciation. The benefit to interest-only mortgages is that you increase your cash flow by not paying principal.
Remember to ask your mortgage broker or mortgage banker lots of questions about which mortgage is right for you and your situation.
Make sure you get a home inspection before you close. It will be well-worth the money spent since it ensures the property's structural soundness and good condition.
Setting the closing date that is convenient to both parties may be tricky, but can certainly be done. Remember that you may have to wait until your rental agreement runs out and the seller may have to wait until they close on their new house.
Be sure you talk to your mortgage banker to understand all the costs that will be involved with the closing so there are no surprises. Closing costs will likely include (but are not limited to) your down payment, property transfer tax, gst, title fees, appraisal fees, lawyer/notary fees and inspection fees.
You've got your mortgage, closed the deal and now it's time to move in! Whether you use a mover or not is up to you, depending on your financial situation and how much stuff you have to move; perhaps also, whether you have a lot of friends willing to help you move. Either way, you're done with the home buying process! Just start unpacking and start enjoying your first home! Buying a home for the first time doesn't have to be a hassle if you're prepared and you know what to do and when to do it. Choose an experienced home loan lender and a friendly, knowledgeable real estate agent-they are the key to helping you have a smooth home buying experience!
We thoroughly enjoyed our recent experience with Kim. We found him to be a complete professional. His knowledge, and calm demeanor helped immensely as we worked our way through the real estate sale and purchase process. In addition, he has a very strong work ethic. We highly recommend Kim to anyone looking to sell or purchase real estate. Thank you Kim.
Eunmi Conacher
I recently purchased a property with Kim Bihari and couldn't believe how easy he made the experience. He negotiated up and above what was offered on the property and delivered on every single item. Even after the deal was successfully signed and my move in date set, Kim went out of his way to meet other requests regarding the property, making my transition even easier. He is professional and meets every request in a timely manner, even after the deal is done! All I can say is thank you! I have moved 3 times in the past 6 years and my 4th and hopefully the last was my best experience.
Daniela Cousin
Kim recently sold two, yes two of our properties very quickly. One in a single day and another in less than a week. I consider these great results due to his attentive dedication to getting the job done the best he can. Kim was always available! This was something we sought out in the beginning and shortly thereafter it became comforting to realize we were being looked after. He was always punctual with his timings and kept us informed on all developments immediately as they arose. Kim provided excellent advice on all matters of concern exhibiting his very knowledgeable experience. He is a true professional and I would not hesitate to recommend his services to friends and family.
Richard Loy
I would highly recommend Kim Bihari if you are considering using a real estate professional in the Nanaimo area. Kim helped to make the process as painless and as smooth as possible. He has a wealth of local knowledgeable and was an invaluable source to turn to when I needed to contact a variety of services. Kim was able to advise me on many things including obtaining a home inspection, pest control, arborist and even rubbish removal. He was able to offer advice on or personally take care of, any issue that came up. I was living on the lower mainland at the time and without Kim's help, the whole process would have been very time consuming and onerous! Thanks to Kim it was virtually painless!
Phil Morris
We listed our home with Kim after much research and due diligence. I am glad we made the right decision!. Throughout the period of showings, offers and (eventually) completion, Kim was quite respectful of our space, efficient in his work and a thorough professional. He was always available just a phone call away and ready to discuss our listing and/or share relevant information - essentially keeping us informed about any changes to the market that might affect our listing. If he could not answer his cell phone for some reason, he always called us back promptly, within a minute or two! Kim is one of those few rare realtors who are totally dedicated to their clients and profession. I would highly recommend Kim to any buyer or seller looking to buy/sell real estate here on the island. If you don't want to live under the apprehension about whether your house will sell on time or not, then Kim is the realtor to go with!
Amrita Dhyan