When buying a house you have a lot of flexibility in how you finance a house - similar to other loans, shopping around for the best mortgage rate may be tedious but can save you thousands or tens of thousands over the long term. The best strategy is to shop around with banks first to get the best rate and terms and help you feel comfortable with your budget and price range, then arrange a guaranteed pre-approval to not only make the house shopping process simpler, but to also streamline the financing that will come after you’ve chosen your home.
Many people make the mistake of being complacent and assuming your home won’t be broken into. We recommend that you get a home security system for a few reasons. First and foremost, it will act a a deterrent. If you have a security system but your neighbor doesn’t the bad guy will most likely choose your neighbor’s house as the easier target. If your home is broken into the system will alert the authorities. The panic buttons can be used to quickly call for help in an emergency.
With a new home, there are no surprises when you move in. You know how the house was built and what went into it-what you can see and what is hidden behind the walls. You also know exactly how to operate and maintain your home’s systems and equipment. If you have questions later, your builder will be there to give you a helpful and accurate answer. Why live with other people’s taste in interior decoration? Or spend the next few years redoing the previous owners’ home improvements when you can get what you want from the very start. From layout to cabinets to carpeting, new home builders offer a wide selection of standard and upgrade options. You can pick and choose what suits your own lifestyle, personality and budget. The technology of home building has improved tremendously over the past few decades and new homes are built better than ever before. They are solidly constructed and well designed for today’s lifestyles. They are highly energy efficient, with excellent indoor air quality. From heating systems to roofing shingles and windows, today’s building products work better, last longer and often look better. The result is a brand new home that is far more comfortable and healthier, easier to maintain and more enjoyable to live in.
Closing Adjustments are part of the expense of buying a home, whether new or used. These costs are not part of the sale price of home and will have to be paid to you lawyer prior to closing. There are a number of property expenses that the seller may have prepaid and will need to be reimbursed for by the buyer. They include: Municipal property tax, Utilities such as heating, hydro and water and Condo maintenance fees, if applicable. Most provinces levy a one-time tax when you buy a home (subject to change). The tax is based on a percentage of the purchase price of the property, and varies from province to province. In Ontario, for example, the rate is % on the first $55,000 of the purchase price, 1% on the next $195,000, 1.5% on the next $150,000 and 2% on the remainder.
You are required by the mortgage lender to have fire insurance effective at the time you legally take possession of your new home. Some insurance companies may demand proof of a home inspection or may not insure certain types of dwellings. Make sure that you enlist your insurance agent early. If you are buying an older home with aluminum wiring or galvanized plumbing there are some insurance companies that will not insure you. We typically recommend you contact the insuring company for a policy.
Having your new home inspected by a qualified home inspector is very important as you probably have not budgeted for un-expected repairs or system replacements. A professional home inspector will visually inspect all your systems and the exterior and interior of your home. Although a home inspection can not guarantee that there will be no problems in the future it is better than just bllindly going where angels fear to tread. The experience and knowledge of your home inspector will directly affect the quality of the report you receive. Trusting your Realtor to choose an un-biased home inspector is sometimes not a good idea, the Realtor’s ultimate goal is to close the deal and get his commission cheque. Savvy home buyers will take the time to search and talk to some home inspectors prior to making a decision.