Your Home Buying Team
Mortgage advice and
information is not just important, it is critical. Timely and accurate mortgage
advice, the right products to select from, can be a boon to the enjoyment of
your first purchase as a family home and lifetime investment. There is no
reason to rush the purchase of your first home - remember, it is also an
investment in your life and lifestyle.
Mortgage Brokers
Mortgage brokers are licensed, independent financing professionals who specialize in negotiating residential and commercial mortgages. Mortgage brokers don’t work for a lender so they offer objective financial advice and find the solution that is right for you, and in most cases, using a broker will not cost you anything. A broker’s role is to find you the best product and rate available to you and fits with your goals and budget.
In addition to the major banking institutions and credit unions, brokers have access to a multitude of lenders that may not have a presence in your community.
Why should you use a mortgage broker? Besides the monetary gain of working with a mortgage broker, they work with you through the entire financing process, not only securing you a mortgage product that is tailored around your particular requirements, but they coordinate the financing process between all the different professionals involved in your real
estate transaction. A broker will identify to you in detail, all the different aspects of the financing process so when you sign your mortgage documents, you have no surprises. Having a mortgage broker working on your behalf ensures you are getting the best rate and product available to you and once the financing portion has been completed, this service
continues keeping you abreast of changes in the marketplace so that when it comes time for renewal, your broker is still by your side keeping your best interest first.
Real Estate Sales Agents
A real estate salesperson is a licensed professional that is trained to advise you of all aspects of purchasing a home. You can expect competent service from your agent, knowing that they are bound by ethics and the law to be honest and thorough. Your realtor will save you time by helping you narrow down which types of properties are most suitable for you and give you a list of available properties. They will assist you with the offer and counter-offer process of an Agreement of Purchase and Sale between you and the vendor.
Lawyers
You will need to find a lawyer or Notary to draw up the mortgage documents and transfer title from the vendor to yourself. Any lawyer or notary can handle the transaction for you, but it is best to choose a lawyer who specializes in real estate transactions. This way you can be assured of receiving the most up to date advice. The lawyer would go over the
mortgage document thoroughly with you and ensure the terms are as you requested. The lawyer will do a title search to ensure there are no extra zoning requirements and do a survey to ensure that the subject property does not have any encroachments on the property line. On your closing date, your lawyer will have the mortgage registered and
remove and charges from the vendor and transfer the title into your name. You will usually get the keys to your new home the next day or so, this is called “possession”.
Home Inspectors
When you make an offer to purchase, it is advisable to get an inspection of the structure in order to determine if the property is in sound condition. The inspector will go over any repairs that need to be made and provide you with an estimate of the cost for the repairs. You will receive a detailed report of the inspections and the cost for this is generally $400 - $550.
Appraisers
As the Bank Act only allows bank and trust companies to lend up to 80% of the value of a property without it being insured to protect the lender against default of the loan. Since this is the case, if you are borrowing less than 80% of the funds needed for the purchase, an appraisal will be required to determine the market value of the property by an independent source. The appraiser will look at the recent sales in the area where the property is located and make comparables to the property being purchased. Unless you order the appraisal yourself, it becomes the property of the lending institution, but you are still responsible to pay the appraisal cost. An appraisal can range from $225.00 to $400, depending on the property and the location.
Insurance Professionals
As a home owner, your property and life insurance needs will change. An insurance broker can evaluate your financial situation to determine the amount of life insurance that you require. This is not a requirement of the bank, but a personal choice to be made; however, it is mandatory that you insure your home against fire, when you have a mortgage. This is so the house may be replaced and/or the loan paid out.
Each lending institution can offer you mortgage life insurance, but it is advisable that you consult an insurance broker to get a quote and avail yourself to more options.
Title Insurance Companies
Title Insurance is used in lieu of a property survey to ensure that the property being mortgaged will be delivered clear of all charges. This insurance also protects the lender/purchaser against some possibly future issues that could develop with the property. Many lenders are now requiring that title insurance be a condition of the mortgage.
Articles: