Date: March 1, 2021

Category: Blogs,Mortgage Tips & Advice

What’s a home buying kit you ask? Well, let me explain.

As a buyer there are things that you need to have in place to ensure that you are correctly positioned to purchase a home. The tool kit is going to make you a Rockstar in the seller’s eyes.

So here is what you need:

1. A Pre-Approval.

Sellers- Do not overlook this. A Pre-Approval is not just for First Time Home Buyers but for everyone. You want to ensure that the person attempting to purchase your home has this tool to ensure they are actually pre-qualified to own your home.

Buyers- You need this. Oftentimes clients assume what they are comfortable with paying each month will be the amount they will be approved for especially if they are already paying a high rent somewhere else.

2. Know your Team

What do I mean by that? Well during this process you are going to need three main partners to help you through this. There are others along the way, but these three will do most of the heavy lifting

Realtor- integral part of the process, they will ensure that you find the right home at the right price.

Mortgage Broker – you need a trusted mortgage broker who is working in your best interest, who is working with you and your realtor to provide timely response and quick approval. That is unless you are paying cash for your home (does any one do that with these low rates?)

Lawyer – your lawyer will close out this cycle for you, and having an experienced lawyer who can answer all your questions and ensure that you close on time is key.

Ensuring that you have your partners and that they all connect is a key step. This normally begins with your Realtor or Mortgage Broker and then we loop in your Lawyer – a team working for you

3. Our Mortgage App

“What?!?! Why?!? I’m pre-approved! Why do I need that? “ Yes you are pre-approved. This mortgage app does more than you know. While searching for the perfect home, you can work out different scenarios base on the purchase price, you can calculate what your closing costs will be and land transfer tax, which is always the biggest number

4. Know your numbers

As a seller you need to understand what the costs are associated with your sale and then purchase. We need to make sure that there are enough funds to cover moving and closing costs. Here are a few things we look at:

  1. What are your proceeds once we’ve paid out your existing mortgage – this will form part of your down payment on the new home if not all
  2. Do we need to look at any debt that must be paid off with the proceeds of the sale?
  3. Are you breaking the existing mortgage? Does it make sense?
  4. Are the rates lower? If so, what is the penalty?
  5. Realtor Fees
  6. Legal Fees for the sale and the purchase of your homes
  7. Land Transfer Tax on the purchase of your new home
  8. Misc Fees, furniture, appliances, etc
  9. There are always unexpected expenses, do we have a buffer for that?

First-Time Buyers, we need to ensure that we work through a budget so that you spend what you are comfortable with. I often ask my first time buyers what is the amount that they are comfortable with paying and go from there. We also factor in:

  1. Realtor Fees
  2. Closing Costs
  3. Down Payment
  4. Legal Fees
  5. Land Transfer Tax on the purchase of your new home
  6. Misc Fees, furniture, appliances, etc

There are always unexpected expenses, do we have a buffer for that?

5. Letter to your new home.

I like to affectionately call this a love letter to your new home. This is of course done when you have found the home you want and you are submitting an offer. My suggestion would be to address this love letter to your new home, something like:

Dear 123 Apple Tree Lane,

We fell in love with you at first sight, but when we walked through your doors – wow! We knew we were home. We can see ourselves enjoying summer afternoons in the yard under the shade of the old tree. We can’t wait to cook family dinners in your kitchen – that island is our dream!

Sincerely, The Smith’s

This letter may be a little extra cheesy than you may like but, from speaking to many of my Realtor partners, I’ve come to understand that a letter where you don’t talk about yourself, but more address what the house means to you has more value. Keeping this primary focused on the house and you’re feeling towards it. This really helps the Seller see a picture of who you are without you actually telling them, who you are. This is very helpful in ensuring that every party is represented fairly at the bargaining table.

Now that you know how to build a Home Buying Tool Kit, quick go build yours or pass this information along to someone who needs it.

Until next time, have a great week

Want to connect?

Email me at ana@askanacruz.ca | Call or text 905-870-0513

Alternatively our office can be reached via text at 289-769-8864