Buying a home

Determining how much you can afford is key to finding your dream home!    You will set yourself up for major disappointment if you are looking at  homes that are not within your budget.   

A general rule of thumb is that you shouldn't be spending more than 28% of your gross monthly income on home related costs.   When you combine all your other debts (like car loan, student loans, credit lines or credit cards etc.), the max you should be spending on debt is about 36%  of your gross monthly income (that includes your house payments - For an affordability calculator use my resources section).    

Your mortgage professional can assist you with identifying the budget that you are comfortable with while following the appropriate lending guidelines. 

A great mortgage calculator can be found at CMHC or use the one in my resources section.

The OTP (Offer to Purchase) is the legal agreement that binds you and a seller.   The agreement includes the  terms and conditions with respect to the sale of a specific property and offer.  

Generally speaking conditions are placed in the OTP protect the buyer in case there is a need to revoke the offer (which could be for a multitude of reasons).

With a properly worded condition you are able to withdraw the offer and potentially secure 100% of your deposit returned.

Every situation is unique, which may require very specific conditions to the property you are buying.   As your buyer agent, I will help you through this process ensuring you are protected. 

One of the conditions that are common on a property are that of "subject to satisfactory home inspection".   Many buyers ask why they need a home inspection when a Property Disclosure Statement (PDS) has been  filled out by the owner.   

An inspection is important because there might be underlying issues with the home that the owner may not be aware of.  

A comprehensive home property inspection will include a closer look of the roof and it's elements, the foundation, electrical system, plumbing, landscaping issues (if viewable) and much more.   

A property / home inspection allows the buyer to be more informed with their  decision to purchase one of the largest assets of their life. 

As you purchase your new home, you need to be aware of all the costs you may encounter during your journey. The last thing you need to be surprised with is a large bill at your lawyers office.  Your lawyer will be the one to advise you of specific amounts and if you will encounter these potential costs. 

Below is a list of Items that you may encounter and need to budget for throughout the home buying process.  

Adjustment for Taxes

The seller may have already paid taxes past the agreed upon possession date.  If this is the case, you will need to repay those taxes  to the seller.

Lawyer Fee's

Your lawyer will advise you of their firms charges and what to expect for closing fees.   

Mortgage Expenses

Typically there are no costs involved outside of the mortgage itself.  However their could be fee's depending on your unique situation and the lender you are using.  

Land Transfer Tax

This is usually accounts for one of the largest costs associated with buying a home.   To determine what your cost might be - use this calculator offered at Teranet Manitoba or the one in my resources section. 

House Insurance

You will need to have property insurance in place when you go to see your lawyer.  

Interest Charges

Interest charges could be owed to the seller depending on how long the transfer of the mortgage takes. 

Cost of Certificates / Zone or Survey etc. 

You may want / need to purchase certificates  for the property you are going to purchase.   This is not always necessary, however you should be aware that it could happen. 

Purchase of Household Goods

Do you have everything you need to live on the property?  Are a fridge and stove included, how about furnishings?  Do you already own a shovel, rake lawnmower? 

 The offer on your dream home is a key stepping stone to purchasing your dream property. This is an exciting and albeit emotional time in the process.  

Negotiating the sale of your future property and representing your best interests is what I do best.  I take away the stress of the back and forth process while helping you achieve your home ownership goals!

There is a lot of information and detail that goes into an offer to purchase.  Depending on the type of property, there could be very specific conditions needed for you to feel confident in your offer.   

Understanding these requirements and knowing how to protect your interest is fundamental when writing a precise and detailed offer.   I am there to provide guidance and advice along this journey.

There are many options when choosing a Mortgage.  Talking with a Mortgage professional to determine your unique financial situation will determine which solution might be best for you.

Some of the types of mortgages and terms for you to become familiar with are:

Open Mortgage

Typically - An open mortgage allows you to pay off your mortgage at any time without penalty.  Traditionally you would pay a much higher interest rate for this privilege.  However, if you know you are about to receive a large amount of money, it may be worth it. 

Closed Mortgage

A closed mortgage is a very common mortgage.  This type of mortgage guarantees the borrower a specified interest rate over a specified period of time (or term).  i.e. 2.5% over 5 years (term).   Penalties to  pay this type of mortgage off early can be high.  Usually either 3 months interest, or the interest rate differential - which ever is higher of the two. 

Variable Rate Mortgage

 A variable rate mortgage gives the borrower the advantage of a flexible interest rate - as the interest rates go down, so does your rate.   If however rates go up, so does your rate.   In a higher rate market, you could save thousands when rates go down. 

Home Equity Mortgage / Line of Credit

Your lending institution finances your house for up to 80% of the value of the property (you need a minimum of 20% down).   You can break that down into 2 credit pieces;  Your mortgage and a credit line.  As you pay down your mortgage, your credit line increases and you have access to additional funds.  You don't have to reapply for credit. 

Cash Back Mortgage

If you are tight on money for closing costs or know you are going to need some cash when the mortgage closes, this might be the option for you.  You won't necessarily get the best interest rate, but you could potentially get the much needed cash for those home furnishings that you will need to purchase. 

Secondary Home financing

Whether purchasing an investment property or vacation home - there are special mortgages that are designed for non-primary residence properties. 

These are SOME of the options that are available to you.  For detailed information or pre-approvals,  I can suggest a mortgage professional for you. 

 Legalities - A Real Estate Lawyer is a key part of your Real Estate team.   If you don't have a Real Estate Lawyer, I am always happy to recommend an experienced professional to you.    

Your lawyer will review with you all of the important documents that will require your signature including the "offer" that has been agreed to.  Your lawyer will advise of the closing costs and legalities required to finalize the agreement.   When you meet with your lawyer, they will have the mortgage documents for you to sign.  You will also need to give your lawyer the remaining down payment dollars.

Your lawyer will review all aspects of the Real Estate Transaction - and lastly - they will provide you with the keys to your new property. 

 Buying with Tracy (Mainland) Kramble a licensed REALTOR® will provide you with a number of benefits:

What I do for you

• I will always have your best interest at heart
• I will ensure that you have all the market comparisons close to any property you are interested in
• I will take care of all the legal paperwork
• I will walk you through any properties that you are interested in
• I will guide you through the buying process
• I will negotiate any offers you wish to submit
• I will give you honest, fair and objective advice
• I will provide you with a network of professionals you may require during the home purchasing process
• It doesn't cost you anything to use a Real Estate Agent to purchase your home!

There are many considerations when purchasing your home. I would love the opportunity to earn your business and discuss more details with you.  

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