Purchasing advice
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Buying with Suzanne M. O'Toole
Whether you are looking for a
comfortable place to retire or a beautiful spot for recreation, London,
Ontario is an ideal place to call home. I am dedicated to helping you
find the best home, investment property, or condo that fits your needs.
I am a caring professional and I am driven by your best interest, I
will go out of my way to show you every home or property that may be of
interest to you. You’ll surely find that there are a variety of
attractive properties in the London area that suit your family’s needs.
Just click here to take a look at our beautiful home, or investment
listings:
http://www.suzanneotoole.com/buyingaproperty/propertiesforsalenow.html
If you’re new to the London area, the area supports plenty of
facilities and activities that will help make London “Home” for you and
your family. The area abounds with educational facilities, fine dining,
shopping and recreational facilities.
Part of our service is to provide those who are new to London with a
familiarization tour and lists of a number of the great features of the
area. I have been working with families since 1980 to find the very
best homes to suit their needs.
Call me
for First Class Service. 519- 433-4331
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What Can You Afford
Personal Credit History:
Your personal credit history is compiled by
credit reporting agencies which collect information from various
sources including banks, retailers and other public records, creating a
credit report. Information such as: what credit and debit cards you
have, the types of accounts you have at various financial institutions,
information about personal loans, mortgages, student loans, etc., is
all part of the report. The report shows the creditors' names, account
numbers, the date accounts were started, the current balance as well as
a detailed payment history (for example: how many times you were over
30, 60, or 90 days late in paying bills). Generally, credit reports
show information going back six to seven years. The report will also
show public information, for example, marriages, divorces, liens,
judgments that have been entered against you, bankruptcies, etc.
The credit reporting agency does not rate you - it merely provides
information on your credit history. The lender will examine the credit
report to aid in determining whether to lend you money. If the lender
has any concerns about something on the report the lender may ask you
for an explanation. Though lenders usually work as quickly as possible
in processing mortgage applications - the process can be slowed down if
the lender needs to go back to the applicant for an explanation
concerning items on a credit history. So, don't worry, but be prepared
to answer questions the lender may have - often a simple explanation
will do.
The lender will also use the report to verify
other information on your mortgage application, for example:
information about your employment status, your address (including the
name of your landlord and perhaps rental payment history), etc. The
credit report will also indicate inquiries made by other creditors over
the period of the report. This information might be useful to a lender
to show what other avenues of financing you might have tried and it may
raise questions about why another potential creditor declined to lend
it to you.
Purchasing a home involves one-time costs and monthly expenses. The
largest one-time cost is the initial investment or down payment and it
usually represents between 5% to 25% of the total price of the property.
In addition to the actual purchase price, there are a number of other
expenses that you might be expected to pay for. These are listed below:
.
Lenders:
The credit reporting agenciy does not rate you -
it merely provides information on your credit history. The lender will
examine the credit report to aid in determining whether to lend you
money. If the lender has any concerns about something on the report the
lender may ask you for an explanation. Though lenders usually work as
quickly as possible in processing mortgage applications - the process
can be slowed down if the lender needs to go back to the applicant for
an explanation concerning items on a credit history. So, don't worry,
but be prepared to answer questions the lender may have - often a
simple explanation will do.
The lender will also use the report to verify
other information on your mortgage application, for example:
information about your employment status, your address (including the
name of your landlord and perhaps rental payment history), etc. The
credit report will also indicate inquiries made by other creditors over
the period of the report. This information might be useful to a lender
to show what other avenues of financing you might have tried and it may
raise questions about why another potential creditor declined to lend
it to you.
Expenses:
Purchasing a home involves one-time costs and
monthly expenses.The largest one-time cost is the down payment and it
usually represents between 5% to 25% of the total price of the property.
In addition to the actual purchase price, there
are a number of other expenses that you might be expected to pay for.
These are listed below:
.
Typical One-Time Expenses
EXPENSE |
PAID |
Mortgage Application and Appraisal Fee
|
At time of application
|
Property Inspection (optional)
|
At inspection
|
Legal Fees
|
Closing
|
Legal Disbursements
|
Closing
|
Deed and/or mortgage registration
|
Closing
|
Property Survey (sometimes provided by
seller)
|
Closing
|
Land Transfer Tax
|
Closing
|
Mortgage Interest Adjustment and Mortgage
Take Over Fee
(if applicable)
|
Closing
|
Adjustments for Fuel, Taxes, etc.
|
Closing
|
Mortgage Insurance
(and application fee if applicable)
|
Closing
|
Home and Property Insurance
|
Closing and on-going
|
Connection charges for utilities
such as gas, water and electricity
|
Date of move
|
Moving Expenses
|
Date of move
|
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How to Make an Offer
When it comes time to make an offer,Suzanne M.
O'Toole can provide current market information and will assist you in
drafting your offer. She will communicate the offer, sometimes known as
an Offer to Purchase*
to the seller, or the seller's representative, on your behalf.
Sometimes there may be more than one offer on a property coming in at
the same time. Suzanne M. O'Toole will guide you through this process.
Offer to Purchase:
A legal document which specifies the terms and conditions of your offer
to purchase the home. In the province of Quebec, this is
referred to as a "Promise to Purchase". The offer can be firm or
conditional.
Firm Offer to Purchase:
Usually
preferable to the seller, because it means that you are prepared to
purchase the home without any conditions. If the offer is accepted, the
home is yours.
Conditional Offer to Purchase:
Means that you have placed one or more conditions on the purchase, such
as "subject to home inspection", "subject to financing" or "subject to
sale of buyer's existing home". The home is not sold until all the
conditions have been met.
Acceptance of the Offer:
Your Offer to Purchase will be presented as soon as possible. The
seller may accept the offer, reject it, or submit a counter-offer. The
counter-offer may be in reference to the price, the closing date, or
any number of variables. The offers can go back and forth until both
parties have agreed or one of you ends the negotiations.
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Have
a Home Inspection
Buying a home is one of the most important
investment decisions you will make in your lifetime. As such, it makes
sound financial sense to enlist the services of a qualified home
inspection company to ensure your home is as solid and secure on the
inside as it is on the outside.
A home inspection will determine the structural
and mechanical soundness of your home. Your home inspector will
identify existing and potential problem areas, suggest practical
low-cost solutions, and provide estimates regarding costs for any work
required. Shortly after the inspection has taken place, a report
summarizing the findings is generally provided to the potential
purchaser.
By commissioning a home inspection prior to
purchase, you're protecting both yourself and your investment, as well
as buying a little peace-of-mind.
Home inspection costs often range according to
size, age, and location of the home. Your Royal LePage sales
representative can recommend a reputable home inspection service or
arrange for a home inspector to visit your property.
Recommended Home Inspector
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Lawyer's Role and Fees
Security
& peace of mind are key in hiring a real estate lawyer: Buying
or selling a home and moving are very busy and stressful times for most
people. We understand that and make every effort to give you peace of
mind until the deal is done and you get your keys on closing.
Legal
fees: You will need a lawyer to complete
the purchase of your home. Legal fees vary from lawyer to lawyer but on
average it is safe to allow $650 - $800 for legal fees and another
$300- $400 for disbursements such as registering the deed etc. The
legal fees for a purchase of a $100,000 home would be about $650 for
the lawyer and $350 for disbursements for a total of $1000.
Land
Transfer Tax: The Province of Ontario charges a fee to
transfer the title to the property into your name. In Ontario, this fee
is calculated based on the sale price of the property.
The tax rate is calculated as follows:.
- 0.5% of the value of consideration for the
transfer up to and including $55,000,
- 1% of the value of the consideration which
exceeds $55,000 up to and including $250,000, and
- 1.5% of the value of the consideration which
exceeds $250,000, and
- 2% of the amount by which the value of the
consideration exceeds $400,000 for land that contains at least one and
not more than two single family residences.
Mortgage
application fees: In most instances,
there are no mortgage arranging fees payable upon application for a
mortgage. We have mortgage specialists with whom we work who have in
excess of 40 sources of mortgage funding.
Title
Insurance: While Title Insurance is optional, I strongly
advise discussing the benefits of Title Insurance with your lawyer.
Recommended Lawyer
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Closing
Your Transaction
After the agreement of purchase and sale has been
agreed to by both the buyer and seller, the buyer’s lawyer will have
the title searched to make certain that there are no charges against
the title that cannot be cleared at closing. The lawyer will also order
a number of certificates including a tax certificate to make certain
that the property taxes have been paid. The buyer’s lawyer, in most
instances, will also prepare the mortgage documents as well as all
other documentation necessary to close the transaction. Your lawyer
will be your advocate during the closing process. Your lawyer will make
arrangements with you to come to his/her office to sign documents as
well as bring in your funds (down payment) to close the transaction so
that you may receive the keys and move into your new home.
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