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Dianna Mandzuk ●Sales Representative ● RE/Max Circle of Legends Award recipient (2010) - RE/Max's Highest Honour for Sales Achievement ● Lifetime Achievement Award recipient ● RE/Max Hall of Fame Award recipient ●Certified Luxury Home Marketing Specialist ●Canadian Staging Professional RE/Max Jazz Inc., Brokerage Professional Offices located at 203 Bond St. E., Oshawa, Ontario. L1G 1B4 Direct: 905-433-2579 Office: 905-728-1600
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Buying or selling a home is a big business transaction. That’s why it’s so important to select, in advance, an experienced team of experts and professionals you can trust. These skilled and knowledgeable individuals can vary, but usually include the services of a Realtor, a Lender, a Lawyer, a Home Inspector and an Insurance Agent. REALTORIn Ontario, a Realtor is a licensed real estate professional who is a member of a local real estate board as well as the Canadian Real Estate Association (CREA) and the Ontario Real Estate Association (OREA). This individual has successfully completed an intensive course of study and has skills, knowledge and experience that most Buyers and Sellers don’t have. He or she must adhere to provincial law and abide by a National Code of Ethics, ensuring you a high level of service, honesty and integrity. The Realtor you select should be someone that knows the neighbourhood you live in or want to live in and who can provide you with sound, effective advice. A Realtor also acts as a mediator during the real estate transaction and can advise you on when to bring in the other experts or professionals. LENDERPotential Buyers can save valuable time and energy when searching for a home by knowing what they can afford well in advance. Generally, the rule of thumb when purchasing a home is to ensure that your monthly housing costs do not exceed 32% of your gross monthly income, but many factors come into effect when financing a home. The most important considerations when buying a home are your gross household income, your credit rating, your down payment and the current mortgage interest rate. Although CMHC (Canada Mortgage and Housing Corporation) will insure mortgages with as little as 5% down. Most lending institutions finance up to 80% of the purchase price in a conventional mortgage. After you have determined what you can afford, remember that your total monthly debt and monthly mortgage payment cannot exceed 40% of your gross monthly income. This includes mortgage payments, taxes, heating costs, car payments, personal loans, and credit card debts. We, your real estate professionals, can walk you through the basics in terms of determining what you can afford at the onset. For total peace of mind, it is recommended that you contact your financial institution or a Mortgage Broker to get pre-approved, prior to looking for a home. You may choose to work with a Mortgage Broker, Manager or Representative as they can shop around for the best mortgage that suits your personal requirements. Here are the names of a few Mortgage Brokers, Managers or Representatives you could call:
LAWYERWhether you are buying or selling, a Lawyer will represent your interests. It’s a good idea to have one on standby from the start. Let your Realtor know the name of the Lawyer representing you so documents can be sent to the Lawyer’s attention. When an agreement is reached, your Lawyer will ensure you receive valid title to the property and that it is clear of any registered claims. He or she will compensate the Seller for money already paid on services and other matters related to the property. Here are the names of a few Lawyers you could contact to inquire about their fees:
Your Lawyer will discuss & recommend title insurance to you. TITLE INSURANCETitle insurance was introduced in Canada just over a decade ago, and is now an accepted part of the home-buying process. Title insurance protects Buyers against problems that may slip past a title search. The title to a property describes who has the rights of ownership to it, and there can be a variety of issues in determining “clear” title. These could include liens on the property because taxes or contractors haven’t been paid. The previous owner may have done renovations without a permit or ignored work orders from the municipality. Part of the property such as the back yard deck or roof eaves could also be encroaching on a neighbour’s property. There are several reasons why title insurance has become popular. It primarily offers broader ownership protection, especially from mortgage fraud. HOME INSPECTORAs a Buyer, you can avoid expensive surprises by bringing in a Home Inspector as a condition of your Offer to Purchase. The older the home, the more likely there will be issues or problems. Being aware of any “major or structural defects” will help you decide whether to proceed with your purchase, or negotiate a lower price to compensate for those major defects. It is important to note that most houses will have a list of minor repairs/deficiencies but it is the major ones that can pose a problem. Here are the names of some Home Inspection Services you can call and obtain a quote from for their services:
INSURANCEYou will require insurance coverage on the home you buy. This insurance must be in place before any purchase can be finalized. There has been a growing concern in the real estate industry about the escalating cost and availability of property insurance. Realtors have provided anecdotal evidence that insurance companies have refused to insure homes that have been previously covered. In other cases, companies have decided to raise insurance premiums by a considerable amount. Some properties involved in insurance coverage issues have real or perceived environmental problems, such as oil tanks or mold. Other insurance issues develop because of outdated wiring or heritage status. Provincial Governments are responsible for the regulation of the insurance industry, including the cost of premiums and the availability of products. The Federal Government’s responsibility is limited to ensuring that insurance companies are financially sound. The Federal Government obtains assurances from the Office of the Superintendent of Financial Institutions (OSFI) that the investment portfolios of insurance companies are not excessively risky. If you’re involved in a home transaction these days, you have to think about insurance. It could affect whether or not you get the home you want. Determine if there are any problems that would raise concerns for insurance companies. If there are, what can be done to alleviate them? Home insurance companies have tightened their underwriting criteria and they’re reluctant to take on risks that may not have bothered them in the past. What’s at stake for you is not just the insurance, but mortgage financing as well. Banks won’t advance funds on the purchase of a home unless there is proof of insurance. A number of home insurance issues have been identified that can impact the home buying process. These issues can include: § Aluminum wiring – demands to retrofit and/or change completely to copper (you may be required to have an Electrical Safety Inspection by the Electrical Safety Authority (ESA) completed on your property if your home has any aluminum, knob & tube or unknown wiring) § 60 amp electrical service – not deemed to be sufficient regardless of size of dwelling § Knob and tube wiring § Furnaces more than 20 years old § Oil tanks – age, certified § Woodburning appliances – WETT certification is being measured against current building codes § First-time Buyers without prior home insurance history § Insurability point system now used by insurers which may be detrimental to first-time Buyers. This includes “red zoning” because of the location of the property. Be prepared. These are “some” of the basic questions you may be asked in your application for insurance:
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NOT INTENDED TO SOLICIT PROPERTIES ALREADY LISTED NOR BUYERS SIGNED UNDER A BUYER'S AGENCY AGREEMENT. E. & O.E. The information contained herein is believed to be accurate, but should not be relied upon without verification. Each office independently owned and operated. This site best viewed at 1024 x 768 screen resolution. COMMENTS/QUESTIONS CONTACT THE WEBMASTER content © 2010 DIANNA MANDZUK. ALL RIGHTS RESERVED.
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