First time home buyer

Buying house first time is very exciting and joyful but some time it can be little stressful as well. You should be fully aware of the whole procedure ,cost associated and all other requirements from pre approval of the mortgage to the closing of the house.Below is the step by step guide to prepare yourself for buying your dream home.
First step is to Gather all the documents Required to meet mortgage Broker/Advisor.Which includes but not limited to below:
  1. Equifax Credit Report ( visit www.equifax.ca ) .Print full report under products.
  2. Employment Letter /Articles of incorporation (if self employed)
  3. Recent Pay stubs /Financial Statements (If Self Employed)
  4. Last two year notice of assesment
  5. Last two year of T1 General
  6. Last 3 months Bank statements (For proof of downpayment )
  7. Proof for any international wire transfer to your Account.
Before start your search for your dream house ,you should know how much mortgage you can lend from The lender.This will help in making your Budget and Price Range for the Purchase of your House.It will save your Time and Efforts.
Apart from down payment ,There are other expenses which are described below
  1. Home Inspection fees
  2. Mortgage Broker Fees (If Applicable)
  3. Land Transfer Tax (Use Land Transfer tax calculator )
  4. Title Insurance
  5. Lawyer Fees
  6. Property Tax Adjustment
Lawyer can give you exact Cost of Land Transfer tax,Lawyer fees and Title Insurance .Home inspection price Range from 350 to 600 Depend on the size of the House.
Once you know the price Range ,You can Start your Search Based on geographical location ,your job commute ,schools and any public transportation etc.you can ask Realtor for more information.
Once you like any property ,everything is under your criteria ,do not wait to put an offer..Always make sure to put conditional offer for Mortgage approval and Home Inspection.Even Though You are pre approved for mortgage it is always good to put Clause.
When Buyer put less than 20 percent down payment .Lender take Mortgage insurance and Buyer has to pay for Insurance premium .It varies with percentage of down payment .For calculation please refer CMHC Calculator .Some lenders ask to pay HST Upfront for Mortgage insurance premium. Premium is added to the mortgage amount .
Once the offer is accepted and firm ,you need to Arrange the lawyer .You can ask Realtor working for you or use your own Resources .Home insurance needs to Arrange atleast one week before the closing.Home insurance companies may ask series of questions regarding the property .you can always ask your Realtor if you do not have any information available.You need to call your local utility providers to set up your accounts .You should arrange movers at least 3 weeks prior to closing as it is hard to find movers during peak time.

You may consider to buy new furniture and other stuff .Generally Buyer has opportunity to visit property 2 more times before closing.You can keep one closing around 2 weeks prior to closing and another one one or two days prior to closing ..Second visit is very important ,you along with your Realtor must observe if everything is ok (no damage to the property or any fixture which is the part of the agreement or any fixture which is part of agreement is removed from the property). If you find any issue report immediately to your lawyer along with evidence to support so that he can take necessary action before closing.
As First home Buyer ,you may not be aware of small things you need to take care on monthly or yearly basis .Make note of A/C ,Furnace Service inspections and duct cleaning services .It is always good to have small tool kit at home to fix minor repairs .There is no need to panic due to minor repairs .It is part of regular maintenance.
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