What to Expect

Moira Reitsma Home Realtor

What to Expect

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What to Expect

Open each section to find relevant information
about what to expect when Buying Property

Interviewing your mortgage broker

For My Buyers,

 

The following summarizes:

 

  1. Do Not give permission for them to pull your credit bureau… yet!
    And do not pull it yourself.

 

  1. Ask their mortgage rates and have them explained. Have them show you how to use a mortgage calculator.  (click here for an online mortgage calculator)

 

  1. What “Terms & Conditions” are attached to their rates, ie.
    – Payout Penalties
    –    Pay Downs
    –    Portability
    –    Who covers the cost of a property appraisal (lender or you?)

 

  1. Understand what conventional and high-risk mortgages are? What is CMHC mortgage insurance?

 

  1. Be prepared and get your documents in order for your pre-approval and mortgage approval.  Understand the difference.
  2. Decide which mortgage specialist you want to work with and provide permission for him/her to pull your credit bureau.

 

  1. Meet with your trusted real estate professional and find your next home!!

 

 

The attached list of mortgage specialists is for your consideration.

You should also consider your current Bank if you are happy with them.

 

 

 

 

 

 

For My Buyers,

 

First off, if you would like me to be with you when you first connect with a mortgage specialist, please don’t hesitate.  I am here for you, as much as you would like!

 

The attached list of mortgage specialists is for your consideration.  You should also consider your current Bank if you are happy with them.

 

  1. Do Not give permission for them to pull your credit rating… yet!
    And do not pull it yourself.

–      Every time it gets pulled (that includes when you make a big purchase, ie. furniture, vehicles, etc, on credit), you get a “ping”.  After 3, not only do they decrease your rating, but you’re also flagged by the government as a potential fraud risk.

 

  1. Ask their mortgage ratesand get them to explain

–      Open or Closed

–      Variable or Fixed Mortgages

–      Amortization (ie. 25 or 30 yrs)  & Term (ie. 5yr)

 

  1. What “Terms & Conditions” are attached to their rates, ie.

 

–      Payout Penalties (typically that is 3 months’ interest  or  interest rate differential

–      Have your mortgage specialist explain and give examples of how much money can be involved.  I may impact your decision for a short- or longer-term mortgage.  Also, some Lenders’ payout penalties may be less than what you find at your major banks.

–      How often you can do “pay downs” and how much you can pay down according to your payment structure and annually.

 

–      Pay Downs are typically up to 10%, 15% or 20% of your mortgage payment.

–      1x/month, and/or up to the pre-determined 10%, 15% or 20% on your mortgage anniversary date.

–      That extra money goes straight against the mortgage principle (not interest) which is HUGE in paying off your mortgage early.

–      The pay down percentage is negotiated at the time of getting yourmortgage.  It is dependent upon what’s happening in the economy & real estate market.

 

–      Portability.  This is a must.  Sell your property in the future and purchase another without breaking your mortgage commitment.

–      You are in effect “porting” or transferring your mortgage.

–      There is typically a change in mortgage interest rate when this happens, and that’s when they would talk to you about “blending your mortgage“, but that is further down the road and not necessary to worry about at this time.

–      Ask if your mortgage is portable only across Alberta or across which provinces (different lenders have relationships with different provinces and sometimes only in Alberta).

  1. Understand what conventional and high-risk mortgages are?

 

–      What is mortgage insurance?  Who does it cover?  Who pays for it?

 

–      CMHC is the most recognized insurer  https://www.cmhc-schl.gc.ca/en/consumers/home-buying/mortgage-loan-insurance-for-consumers

 

  1. Understand the difference between a mortgage pre-approval and an approval.  Then get your paperwork in order.

 

–      “What to Expect When Applying for a Mortgage” provides a list of documents your mortgage specialist will need from you to start the approval process.

 

–      Pre-approvals allow you to have an idea of “how much” a Lender may be prepared to lend you.

 

–      Mortgage approvals are made once you have an “accepted” Offer to Purchase on a property.  The Lender will review the purchase contract, sometimes the condominium documents (if applicable) and may order a bank appraisal of the property before accepting or rejecting the mortgage application.

–      Note: Lenders can change their minds at any time, including if they think the property is not worth the money you want to pay to purchase it.

 

  1. Decide which mortgage specialist you want to work with

–    then give written permission for him/her to pull your credit bureau.

–      Do this before you go looking at homes.

 

  1. Meet with your trusted real estate professional to find your next home … and enjoy the journey!!!

 

 

Hope this is helpful!  Let me know if you need me!

Moira

 

 

 

Guiding Your Real Estate Journey

Applying for a morgage

WHAT TO EXPECT:

WHEN APPLYING FOR A MORTGAGE

 

 

CONGRATULATIONS on your upcoming purchase! To help you as quickly, efficiently and as best I can, please read the following. It will help both you be ready for your upcoming mortgage discussion.  Note:  The list below may not be inclusive for every individual’s experience.  Your Mortgage Specialist will advise you best!

 

Applicant Information:

  • Your full name & address with postal code, contact info (& those of any additional applicants)

o Have you ever been known by any other names or nicknames?

  • Date of Birth / SIN#
  • Marital Status (single/married/common law/separated/divorced/widowed/other) / Preferred Salutation (Miss/Ms/Mrs/Mstr/Mr/etc) / Spouse’s name (if applicable)

 

Employment: for past 3 years

  • Current employer, address, contact info, job title/what are your duties in that position, how you are paid (hourly, salary, commission, bonus, self-employed, other), pay periods (weekly, bi-weekly, monthly, quarterly, etc), annual income, years/months at the job, years in the industry
  • Previous employer info – as needed

 

Other Income: if any

 

Assets:

  • Savings (copy of past 90 days of statements)
  • RRSPs
  • Stocks/Bonds/Mutuals
  • Properties (address(es) and value)
  • Vehicles
  • Personal Property (ie. household goods/clothing/garage equipment)
  • Life Insurance
  • Will you be using any of the above for your Down Payment / How much Down Payment will you be making?

 

Liabilities:

  • Credit cards
  • Personal Loan
  • Auto Loan
  • Alimony
  • Child Support
  • Unsecured Line of Credit
  • Income Tax
  • Secured Line of Credit
  • Lease
  • Auto Lease

 

 

Compliments of:
Moira Reitsma, Real Estate Professional, CIR Realty  – Guiding Your Real Estate Journey
Cel:  403-466-4999 * Fax: 403-592-6922 * Email:  moira.reitsma@gmail.com

Page 1 of 2

 

WHAT TO EXPECT:

WHEN APPLYING FOR A MORTGAGE   (continued)

 

Properties Owned:

  • Owner occupied / owner occupied & rental / rental / second home
  • Property value / original value / purchase date
  • Annual taxes / monthly condo fees (do they include heat) / monthly heating costs
  • Rental Income (per month)
  • Cost of Hydro/month, management fees/month, repairs/month, other/month, insurance/month, interest/month = total monthly expenses
  • If property is sold – how much of the proceeds will you use for the Down Payment?

 

* * * * *

Here is a list of documents you will likely need for your mortgage approval:  (additional information/forms, including these, may be requested)

  • Mortgage Application / Privacy Agreement / Disclosure & Privacy Agreement
  • Permission to Request your Credit Bureau

 

Proof of Down Payment:

  • Savings Account – past 90 days
  • RRSPs – past 90 days (if presented on a quarterly basis, you may need to supply the past 2 quarterly statements
  • Sale of Home (if already sold) – Statement of Disbursement from your Lawyer / Proof of funds being deposited into your account / Proof that funds are still available (ie. if transferred to another account)

 

Salaried / Hourly Employees: (if applicable)

  • Letter of Employment – start date, position, gross annual earnings (not on a probationary period), how are you paid (hourly, salary, commission, bonus, self-employed, other)
  • 2 recent pay stubs
  • T-4 Slip (if overtime/bonus income is earned)
  • 2yr Notice of Assessment from Government (may be requested if overtime/bonus is earned)

 

(or)

Sales / Commissioned Employees: (if applicable)

  • Letter of Employment – start date, position, gross annual earnings (not on a probationary period), how are you paid (hourly, salary, commission, bonus, self-employed, other)
  • 2 recent pay stubs
  • 2yr Notice of Assessment from Government or T-4 Slip

 

(or)

Self-Employed: (if applicable)

  • 2yr Notice of Assessment from Government
  • Company Financial Statement for past 2 years (if incorporated)
  • T-1 Generals for past 2 years (if sole-proprietor)

 

Other: (as needed)

  • Offer to Purchase for subject property (incl: Feature sheet/MLS listing, Notice removing all conditions)
  • Separation Agreement (if separated or divorced) / Dower Affadavit (copy only)
  • Lender may require a property appraisal be performed on new property/purchase. Depending on the situation and specific lender, this may be a cost to you.

 

Compliments of:
Moira Reitsma, Real Estate Professional, CIR Realty  – Guiding Your Real Estate Journey

Cel:  403-466-4999 * Fax: 403-592-6922 * Email:  moira.reitsma@gmail.com

Page 2 of 2

Buying a Condo- apartment

SO, YOU BOUGHT AN CONDO – APARTMENT!

CONGRATULATIONS!!!

 

(summary)

 

 

  • Since you read your condo documents, double check how many keys and/or fobs are provided through the condo board and how much it costs to replace them (this should be a seller cost).

 

  • Check if you need to get approval or register:

 

  • Where to get your utilities:

 

  • Security system

 

  • Schedule mortgage specialist for signing mortgage documents.

 

  • Schedule lawyer for signing off on the deal

 

  • Schedule your movers

 

  • Obtain condo insurance

 

  • Change of address registration

 

 

Let me know if you have any other questions…

 

 

Move in and ENJOY!!

 

 

 

 

 

 

Moira

 

Guiding Your Real Estate Journey

 

 

 

 

 

 

SO, YOU BOUGHT AN APARTMENT CONDO!

CONGRATULATIONS!!!

 

 

  • Since you read your condo documents, double check how many of each item are provided through the condo board and how much it costs to replace them (this should be a seller cost).
    • Security fobs x2
    • Parking fobs x1
    • Bicycle storage locker and cage key (if applicable) reg
    • Mail key x1 (or cash to replace a lost key)
    • Visitor pass x1
      • Note: some complexes require approval for visitors staying extended periods.

 

  • Check if you need to get approval or register:
    • Pet approval
    • Owner/pet emergency assistance registration
    • Bicycle registration
    • Board approval before doing renovations
    • Move in/out form
      • Some property managers require a cheque be delivered 5 days in advance
    • Reserve/pad the elevator
    • Security onsite for your move
      • Is the fee for this service (non- or refundable?)

 

  • Where to get your utilities:
    • Who has the seller used for utilities
      • It may be less expensive to transfer them to your name as the new owner.
    • Once you set up your account, double check a couple days before your move that they have your auto-payments set up to avoid any interruption of service and/or penalties for late payments.

 

  • Security system
    • Arrange to have your name added to the intercom system and security gate (if applicable)
    • If you also have security inside your unit, double check if it is monitored for the previous owner.
      • Will the seller be cancelling or transferring the security monitoring contract
        • Seller is responsible for any charges to cancelling the contract unless negotiated otherwise.

 

  • Schedule mortgage specialist for signing mortgage documents.

 

  • Schedule lawyer for signing off on the deal
    • Contact your lawyer as soon as you have removed conditions. Real estate can be crazy, you don’t want to find out they are too busy to take on more clients.
      • When real estate markets are crazy busy, it is encouraged to choose a Tuesday, Wednesday or Thursday for your Closing.
    • Final signing often occurs approx. 10 days before Closing.
    • You will need to be prepared to discuss:

 

  • Schedule your movers
    • Do this as soon as you have a firm deal (all conditions are removed)
    • If you are Closing at 12:00 Noon, it is best practice to have your movers come the next day. It allows you time
      • in the event there is a delay with your Closing.
      • to do an extra clean and prepare your home while it is empty.
    • If you are moving between cities, provinces or countries, you might be able to schedule your shipment to piggyback with another move and save some money!

 

  • Obtain condo insurance
    • For your unit/contents
    • For the deductible if you are responsible for damage to the common area or another unit.
    • Make sure your insurance starts a full day or two before you take possession. It costs pennies and the coverage is huge if the unthinkable happens!

 

  • Canada Post and other accounts or memberships
    • Get your mail key changed
    • Change of address
      • Canada Post now charges for this service
      • You are better off contacting everyone yourself and leaving your new address with your previous residence
    • Don’t forget to let your regular delivery company know you’re moving!

 

 

Let me know if you have any other questions…

 

Move in and ENJOY!!

 

 

 

 

Moira

 

Guiding Your Real Estate Journey

 

Buying a Condo-non apartment

SO, YOU BOUGHT AN CONDO – TOWNHOUSE, ATTACHED or DETACHED HOME!

CONGRATULATIONS!!!

 

(summary)

 

 

  • Since you read your condo documents, double check how many keys and/or fobs are provided through the condo board and how much it costs to replace them (this should be a seller cost).

 

  • Check if you need to get approval or register:

 

  • Where to get your utilities:

 

  • Security system

 

  • Schedule mortgage specialist for signing mortgage documents.

 

  • Schedule lawyer for signing off on the deal

 

  • Schedule your movers

 

  • Obtain condo insurance

 

  • Change of address registration

 

 

Let me know if you have any other questions…

 

 

Move in and ENJOY!!

 

 

 

 

 

 

Moira

 

Guiding Your Real Estate Journey

 

 

 

 

 

 

SO, YOU BOUGHT AN CONDO – TOWNHOUSE, ATTACHED or DETACHED HOME!

CONGRATULATIONS!!!

 

 

  • Since you read your condo documents, double check how many of each item are provided through the condo board and how much it costs to replace them (this should be a seller cost).
    • Security fobs x2
    • Parking fobs x1
    • Bicycle storage locker and cage key (if applicable) reg
    • Mail key x1 (or cash to replace a lost key)
    • Visitor pass x1
      • Note: some complexes require approval for visitors staying extended periods.

 

  • Check if you need to get approval or register:
    • Pet approval
    • Owner/pet emergency assistance registration
    • Bicycle registration
    • Board approval before doing renovations
    • Move in/out form
      • Some property managers require a cheque be delivered 5 days in advance
    • Reserve/pad the elevator
    • Security onsite for your move
      • Is the fee for this service (non- or refundable?)
    • Some communities have Home-Owner Association (HOA) fees for its residents. This is paid annually.
      • You will want to go to the Residents’ Association, bring your purchase contract and driver’s licence with your new address and you can get signed up to access the facilities.

 

  • Where to get your utilities:
    • Who has the seller used for utilities
      • It may be less expensive to transfer them to your name as the new owner.
    • Once you set up your account, double check a couple days before your move that they have your auto-payments set up to avoid any interruption of service and/or penalties for late payments.

 

  • Security system
    • Arrange to have your name added to the intercom system and security gate (if applicable)
    • If you also have security inside your unit, double check if it is monitored for the previous owner.
      • Will the seller be cancelling or transferring the security monitoring contract
        • Seller is responsible for any charges to cancelling the contract unless negotiated otherwise.

 

  • Schedule mortgage specialist for signing mortgage documents.

 

  • Schedule lawyer for signing off on the deal
    • Contact your lawyer as soon as you have removed conditions. Real estate can be crazy, you don’t want to find out they are too busy to take on more clients.
      • When real estate markets are crazy busy, it is encouraged to choose a Tuesday, Wednesday or Thursday for your Closing.
    • Final signing often occurs approx. 10 days before Closing.
    • You will need to be prepared to discuss:

 

  • Schedule your movers
    • Do this as soon as you have a firm deal (all conditions are removed)
    • If you are Closing at 12:00 Noon, it is best practice to have your movers come the next day. It allows you time
      • in the event there is a delay with your Closing.
      • to do an extra clean and prepare your home while it is empty.
    • If you are moving between cities, provinces or countries, you might be able to schedule your shipment to piggyback with another move and save some money!

 

  • Obtain household and condo insurance
    • For your unit/contents
    • For the deductible if you are responsible for damage to the common area or another unit.
    • Make sure your insurance starts a full day or two before you take possession. It costs pennies and the coverage is huge if the unthinkable happens!

 

  • Canada Post and other accounts or memberships
    • Mail key x1 (or cash to replace a lost key)
    • Change of address
      • Canada Post now charges for this service
      • You are better off contacting everyone yourself and leaving your new address with your previous residence
    • Don’t forget to let your regular delivery company know you’re moving!

 

 

Let me know if you have any other questions…

 

Move in and ENJOY!!

 

 

 

 

Moira

 

Guiding Your Real Estate Journey

 

Buying a condo - Townhome

SO, YOU BOUGHT AN CONDO – APARTMENT!

CONGRATULATIONS!!!

 

(summary)

 

 

  • Since you read your condo documents, double check how many keys and/or fobs are provided through the condo board and how much it costs to replace them (this should be a seller cost).

 

  • Check if you need to get approval or register:

 

  • Where to get your utilities:

 

  • Security system

 

  • Schedule mortgage specialist for signing mortgage documents.

 

  • Schedule lawyer for signing off on the deal

 

  • Schedule your movers

 

  • Obtain condo insurance

 

  • Change of address registration

 

 

Let me know if you have any other questions…

 

 

Move in and ENJOY!!

 

 

 

 

 

 

Moira

 

Guiding Your Real Estate Journey

 

 

 

 

 

 

SO, YOU BOUGHT A CONDO – APARTMENT!

CONGRATULATIONS!!!

 

 

  • Since you read your condo documents, double check how many of each item are provided through the condo board and how much it costs to replace them (this should be a seller cost).
    • Security fobs x2
    • Parking fobs x1
    • Bicycle storage locker and cage key (if applicable) reg
    • Mail key x1 (or cash to replace a lost key)
    • Visitor pass x1
      • Note: some complexes require approval for visitors staying extended periods.

 

  • Check if you need to get approval or register:
    • Pet approval
    • Owner/pet emergency assistance registration
    • Bicycle registration
    • Board approval before doing renovations
    • Move in/out form
      • Some property managers require a cheque be delivered 5 days in advance

 

  • Where to get your utilities:
    • Who has the seller used for utilities
      • It may be less expensive to transfer them to your name as the new owner.
    • Once you set up your account, double check a couple days before your move that they have your auto-payments set up to avoid any interruption of service and/or penalties for late payments.

 

  • Security system
    • Arrange to have your name added to the intercom system and/or security gate (if applicable)
    • If you also have security inside your home, double check if it is monitored for the previous owner.
      • Will the seller be cancelling or transferring the security monitoring contract
        • Seller is responsible for any charges to cancelling the contract unless negotiated otherwise.

 

  • Schedule mortgage specialist for signing mortgage documents.

 

  • Schedule lawyer for signing off on the deal
    • Contact your lawyer as soon as you have removed conditions. Real estate can be crazy, you don’t want to find out they are too busy to take on more clients.
      • When real estate markets are crazy busy, it is encouraged to choose a Tuesday, Wednesday or Thursday for your Closing.
    • Final signing often occurs approx. 10 days before Closing.
    • You will need to be prepared to discuss:

 

  • Schedule your movers
    • Do this as soon as you have a firm deal (all conditions are removed)
    • If you are Closing at 12:00 Noon, it is best practice to have your movers come the next day. It allows you time
      • in the event there is a delay with your Closing.
      • to do an extra clean and prepare your home while it is empty.
    • If you are moving between cities, provinces or countries, you might be able to schedule your shipment to piggyback with another move and save some money!

 

  • Obtain condo insurance
    • For your home/contents
    • For the deductible if you are responsible for damage to the common area or another unit.
    • Make sure your insurance starts a full day or two before you take possession. It costs pennies and the coverage is huge if the unthinkable happens!

 

  • Change of address registration
    • Canada Post now charges for this service
      • You are better off contacting everyone yourself and leaving your new address with your previous residence

 

 

Let me know if you have any other questions…

 

Move in and ENJOY!!

 

 

 

 

Moira

 

Guiding Your Real Estate Journey

 

Buying a single hoime

SO, YOU BOUGHT A SINGLE-FAMILY HOME

CONGRATULATIONS!!!

 

(summary)

 

 

  • Some communities have Home-Owner Association (HOA) fees for its residents. This is paid annually.

 

  • Some villas have a home-owner association (HOA) agreement with their immediate neighbors. Be sure to read neighborhood HOA documents to see what services you will be paying monthly for services that include.

 

  • Where to get your utilities

 

  • Security system

 

  • Schedule mortgage specialist for signing mortgage documents.

 

  • Schedule lawyer for signing off on the deal

 

  • Schedule your movers

 

  • Obtain insurance

 

  • Canada Post and other memberships

 

 

 

Let me know if you have any other questions…

 

 

Move in and ENJOY!!

 

 

 

 

 

 

Moira

 

Guiding Your Real Estate Journey

 

 

 

 

 

 

SO, YOU BOUGHT A SINGLE-FAMILY HOME!

CONGRATULATIONS!!!

 

 

  • Some communities have Home-Owner Association (HOA) fees for its residents. This is paid annually.
    • You will want to go to the Residents’ Association, bring your purchase contract and driver’s licence with your new address and you can get signed up to access the facilities.

 

  • Some villas have a home-owner association (HOA) agreement with their immediate neighbors. Be sure to read neighborhood HOA documents to see what services you will be paying monthly for services that include, ie.
    • Landscaping and snow removal
    • window replacement/repairs,
    • fitness or recreation facilities, etc.

 

  • Where to get your utilities:
    • Who has the seller used for utilities
      • It may be less expensive to transfer them to your name as the new owner.
    • Once you set up your account, double check a couple days before your move that they have your auto-payments set up to avoid any interruption of service and/or penalties for late payments.

 

  • Security system
    • If you also have security inside your home, double check if it is monitored for the previous owner.
      • Will the seller be cancelling or transferring the security monitoring contract
        • Seller is responsible for any charges to cancelling the contract unless negotiated otherwise in your purchase contract.

 

  • Schedule mortgage specialist for signing mortgage documents.

 

  • Schedule lawyer for signing off on the deal
    • Contact your lawyer as soon as you have removed conditions. Real estate can be crazy, you don’t want to find out they are too busy to take on more clients.
      • When real estate markets are crazy busy, it is encouraged to choose a Tuesday, Wednesday or Thursday for your Closing.
    • Final signing often occurs approx. 10 days before Closing.
    • You will need to be prepared to discuss:

 

  • Schedule your movers
    • Do this as soon as you have a firm deal (all conditions are removed)
    • If you are Closing at 12:00 Noon, it is best practice to have your movers come the next day. It allows you time
      • in the event there is a delay with your Closing.
      • to do an extra clean and prepare your home while it is empty.
    • If you are moving between cities, provinces or countries, you might be able to schedule your shipment to piggyback with another move and save some money!

 

  • Obtain condo insurance
    • For your home/contents
    • Make sure your insurance starts a full day or two before you take possession. It costs pennies and the coverage is huge if the unthinkable happens!

 

  • Canada Post and other accounts or memberships
    • Seller should provide at least one mail key. After Closing, get it replace with a new one.
    • Change of address
      • Canada Post now charges for this service
      • You are better off contacting everyone yourself and leaving your new address with your previous residence
    • Don’t forget to let your regular delivery company know you’re moving!

 

 

 

Let me know if you have any other questions…

 

Move in and ENJOY!!

 

 

 

 

Moira

 

Guiding Your Real Estate Journey

 

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