9 Steps to Owning your Own Home

The benefits to owning your own home:

• The satisfaction of owning your own home.
• Say goodbye to your landlord.
• Start building equity.
• Owning your own home can be exciting and stressful.

The 9 steps to Home Ownership:

Step 1: Make a decision of whether you want to own a home or not

• How long do you want to live there for?
• Does buying make financial sense?
• Can I afford the house I need?
• Am I planning on having children? Mississauga Schools in Review
• Am I going to start my own business?
• Neighbourhood and schools I want to live in/near? Do I want to live in a condominium in Toronto or in a detached home in Mississauga?
• How’s the real estate market/economy that we’re in? Is it a good time to buy?
• Do we have time to maintain and upkeep my home?

Step 2: Seek professional advice

How to Find a Real Estate Agent

• Contact loan officer/bank/mortgage broker, to see how much you can afford. Its the biggest investment you’ll ever make, so choose someone who you trust. Perhaps seeking a second or third opinion to see whats the best rate you can get. Why Steven Ho?

Step 3: Get pre-approved mortgage

Buyer Financial Tips, Peel’s Affordable Housing Program, Mortgage Calculator

You need:

• Credit scores and credit history to determine amount approved, interest rates (2 years of credit history, 3-4 tradelines on credit report, maintain good standing in your credit history) See: Know your Credit and How it works
• Employment history: Two-year job history
• Personal Assets: Bank accounts, stocks, mutual funds, RRSPs, etc. Also have 2 months worth of savings for closing costs or emergency. 9 Potential Sources of Funds
• Property value: The purchase price of the home you’re looking and the loan amount must be suitable to your income. The debt-to-income ratio will determine pre-qualified loan amount.
• Additional documentation: Two years of T4′s, last few pay-cheque stubs and/or two months bank account statements.

Step 4: Start house hunting

How to Find the House to Call home, Find your Dream Home

• Research based on the criteria you set for where you want to live, search online/newspapers/mls/craigslist/kijiji, etc.
• Once you’ve limited your choices, set up appointments to go see these properties with your real estate agent. Why Steven Ho?

Step 5: Find your dream home

Find your dream home! First Time Home Buyers, New comer Buyers

• Make a list of “wants” and “don’t wants” so you get a better idea of what you should get.
• Refine your search, somethings are more important than others. Find your Dream Home
• Goals of achieving your dream home can depend on each individual. Purchase Plus Improvement (get $50k from the government!)
• Remember: You may move 2-3 times before you reach your actual dream home.
• Save up for your downpayment! Should be at least 5% of the purchase price.

Step 6: Negotiate the deal

Purchase Plus Improvements

• Your real estate agent will help you with the negotiations.
• Before negotiating, set your limits of how high or how low you will go.
• Detach your emotions from house for now, as buyers remorse and stress can result unnecessarily.

Step 7: The closing period

• Work with mortgage broker to close the loan.
• You will need the proper paper work for the property so that the broker can close the loan.

Step 8: Close the deal

• Prepare for closing costs. Have some reserve funds for lawyer fees, moving costs, taxes, etc.
• Agree upon a closing date, be respectful of the seller as they may be closing on a new home or waiting for kids to finish out the school year.

Step 9: Move In

10 Steps for a Stress Free move!

• Congratulations! You own your first home!
• Make sure you get enough help to move into your new home!!