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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:

  • 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?


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?


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.


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?


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.


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.

  • 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.

  • 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.


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!!


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