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Wendy's Blog

This and that about living in Cumberland, an area just east of Ottawa. It's meant to be mainly about real estate, but posts from the community are welcome.
Now that you have buyer representation

Once you have agreed on the different terms of the relationship with your agent, he or she can get to work finding you the home that bests suits your list of requirements. 

I am assuming that you have been pre-approved for a mortgage, and that you have shared this information with the sales rep you are working with. If this has not been done, it is kind of pointless to venture out looking at homes: chances are both you and your agent will be spinning your wheels.  In this market, it is essential to know the exact amount you qualify for, and double check to make sure that the amount is realistic.  Would you really want to forego your yearly holidays just to afford a specific home?  Oh, you might be willing to do it for a year, but what about year 2 and subsequent ones?  It is sometimes better to buy smaller and maintain the lifestyle you are used to.

One last comment regarding mortgage pre-approvals.  They only serve to let you know that you qualify to borrow a certain amount - the caveat is that the house you are purchasing must also qualify!  So don't even think of foregoing a financing condition in the offer.  For first time buyers, the house is often acting as collateral for your loan: if the lender is not confident that they could get the full amount of the loan back in the event you defaulted on your payments, the lender might decline the final approval...   

Hopefully you have discussed the commuting time you are willing to live with, and the type of neighborhood that would make you happy.  Then of course, there is the real estate itself: freehold or condo? Detached, semi-detached or row? Must it absolutely be an end-unit?  How many bedrooms, bathrooms, parking spaces?  Anything you could absolutely not put up with?  Cosmetics can be dealt with, most of the time, but if the work required involves adding rooms or changing roof lines, it's often best to give it a pass.

Published Sunday, February 21, 2010 12:23 PM by Wendy Jacques

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