You are ready to look at homes so you call an agent with a list of homes that you would like to see! But wait a minute, are you really prepared to enter the market and compete for the perfect home.
The first thing we should do is to make sure you are ready for the market.
Do you have to sell your home before you can buy a home? If so you need to know what your home will sell for and we should do an evaluation for you.
Will you need a mortgage on the new home? If so we should set up a meeting with a mortgage broker and he can make sure all of your paperwork is in order. Financial institutions may want to see your tax returns for the past three years, they may want a letter of verification from your employer, they will want to see where you are getting the down payment from. Since November the financial institutions have tightened up and credit is harder to get. A good mortgage broker will package your information in a manner that makes it more likely that you will get the mortgage you want. He or she will also get you a better rate by putting your application out to more than one institution for them to compete for your business.
It takes longer with self-employed people to verify their income. All financial institutions are seriously looking at everyone to make sure that they are credit worthy. Even if your bank knows you, they may need to send your application to CMHC and they will require written financial statements from your accountant. We have excellent mortgage brokers that we work with regularly. Please ask for a phone number if you need it.
The reasons for doing these steps first are many:
1) If you find a great house, chances are that someone else will think it is great too. If they have done their homework, and you haven't they will be able to prove with a letter from a financial institution that they are pre-qualified. If they do not need to sell their home to buy another they will likely be successful in getting the home you want. We do not wish this on anyone, so we want to have everything in order for you.
2) Your home may not be worth as much as you think! Market values are down and you need an up-to-date evaluation so that you know how much equity you are looking at.
3) It will save you time and frustration as you won't look at homes you cannot buy.
4) Ideally your home should be sold before you look. If not it should be market ready. If we make an offer on a home subject to your home selling your home will need to be on the market in 24 hours.
To do an evaluation we need to walk thru your home, and get the size and finishes. We will then do a written evaluation comparing your home to others that have sold. It will take you about 15 minutes, and then you will know what you have to work with. This should be our next step. At this time we can make recommendations to get your home market ready. We do this for you without any obligation or commitment on your part.
Once we have all of these things in order you are ready to begin your search for the perfect new home for your family!