The Home Ownership Option

[missile]

Been looking for a nice,medium priced two family house for myself and my youngest daughter and her family ,and have viewed many properties & had more than a few disappointments along the way. This time just could be the one & I won't jinx the deal by jumping before the final ink has been signed But, if everything goes right for us..next month could be the start of my return to the world of owning a wee bit of property and the end of paying rent. BTW, this is the reason for my rare visits here..just been too busy running all over the city, looking at different houses.

 

[maepaulino]

good luck then

 

[stusa]

good luck then

have the house inspected by a pro before signing anything

 

[Curiosity]

Unless you know your location well.....

Check with local law enforcement to see what the rate of "events" have occurred over the past couple of years - it can affect the worth of your property and the price of insurance.

You could have a great well-built structure, functioning smoothly and still be punished for living in a neighborhood with a reputation for petty crime, auto theft, etc. If you have young children check
the list of offenders (if your local law enforcement have one).

Compare mortgage costs if you still have time.... get at least three bids. Remember you are buying their money here.... they aren't "doing you a favor"....you are giving them business.

Best wishes in your new residence....enjoy it for many years to come and make it a home with great memories.

 

[Kreskin]

Whatever you do don't take a long term mortgage rate at this time. Find the best 6 month convertible.

 

[temperance]

I just went thur that

Its a lot of frigging work ,you have to be your own watch dog ,cause everyone is out to take a little extra ,lawyers, realestate agents, mortgage brokers ,apprassiers ,my best advice having lived thur it is research everything be fore signing anything --like the mortgage broker who was precharging us 800 just to talk to us ,then the siging a document that you cant search out another broker for 15 days ,dont sign this crap ---Im sorry there more please set everything in your life aside and focus on this task ,you dont need to settle for that intrest rate ,,say no i have an offer thats lower --I cant go thur the whole thing again but pour over any info first ,I couldnt belive the scams out there --we as a consumer are our own best protection --once evry thing is done relax and enjoy

 

[Curiosity]

Good advice Temperence and Kreskin

I sold three houses without the assistance of a real estate agent who in California charge 6% of the sales price.

I found out (this may be different in Canada), you can get all the necessaries (mandated inspections for pest and roof etc) done by inspectors hired by yourself, take that information with the consent of your buyer directly to
the Escrow company (which is all the R.E. agents do anyway) and the legal formalities are completed, searches are done for a nominal fee of around $2-3,000 by the escrow people.

It cuts out a step for which we pay dearly.

Saved thousands on the money I earned by doing my own work.

 

[Kreskin]

In Canada you don't need a home inspection, though is prudent. Anyone can call themselves a home inspector so do the homework on it. You also don't need an appraisal. The banks use an on-line program with CMHC to effectively determine if the home purchase price is reasonable on conventional mortages (up to 75% LTV and primary residence only and buying an MLS listed property) or the CMHC and GE programs for high ratio. For the most part an appraisal is only required by a lender on an investment property. Of course one might want to have an appraisal for their own benefit, not for the banks. I would look into the last property sale transaction and compare to the price appreciation in the market before appraising.

Edit: I said "in Canada" although property falls under Provincial jurisdiction. Every Province is slightly different in regulations. Also, where I am a notary will do the property transfer and mortgage conveyance for about $750-$800. In BC however there is a property purchase tax - the single biggest money grab of the transaction. 1% on the first 200K and 2% therafter.

 

[TenPenny]

In NB, if the property has been listed under the new provincial system, the transfer should only cost a couple of hundred buck, since no title search etc is needed. That's IF it's been done under the new system. Tax is only applicable if you are buying a new home.

Since he's talking Saint John, he already knows what the different areas of the city are like; everyone knows. However, there are always hidden surprises. Hey missile, where is it located?

 

[temperance]

sorry we would had had to pay apprasial depends on who lending the money -private may ask you to pay apprasil -and the 25 % down convential mortage ---

 

[Kreskin]

sorry we would had had to pay apprasial depends on who lending the money -private may ask you to pay apprasil -and the 25 % down convential mortage ---

The appraisal can be a slight of hand. Since they don't have to show you the appraisal who says one is actually performed if they don't share it? Some do show it, some don't. If the lender doesn't actually need it they won't get it, but may build it into the cost package. I'm not saying that happened in your case but there are some inventive ways to hide costs.

 

[I think not]

Here's a tip missile. Does the home have 9 inch square "vinyl" tiles on the floor? If so, get it checked, 9 inch square tiles contain asbestos and removing them without proper precuations can be a hazard.

FYI and good luck!

 

[Kreskin]

When dealing with a mortgage lender, whether it be in a bank or at a broker, make sure that lender has the experience and competence to be working for you. It's bloody scary how many mortgage brokers out there don't know their ass from a hole in the ground. The same goes for bank lenders. I would insist that whoever works for me has at least 5 years, preferably 10+, in the business of lending money against real estate. Anyone can find you a decent interest rate. Not everyone is capable of providing competent advice/service.

 

[Curiosity]

Make a friend of an appraiser.... it pays off in the long run and they charge $250 for a good home inspection from the attic down....

My guy does appraisals for insurance claims so he is on the alert to cosmetic "fixes". I would never go with an appraisal done for the owner....

Taxation in California (even if paid and up to date) still has a supplemental tax liability once escrow closes because in most cases the tax is based on the previous sale and the owner may be selling at a higher price - at least this is also true for California - and the supplemental bill makes up the difference.

Housing is in a boom right now... and people don't even need agents to sell their houses... a sign out front or a newspaper add and you get buyers lining up.

Won't last forever. I'm coasting for a while to see what's next.

 

[missile]

We're planning on living in the Champlain St.West area, a quiet,older part of the city and we have checked out most of the house and grounds ourselves. The place needs a bit of work, but nothing major & my son in law has carpentry, roofing and a bit of plumbing work experience and I trust his judgment. Our realtor is a personal friend and hasn't cost us a nickel for all the work he has done for us. Besides, we had paid for an inspection on another property we looked at and now have the detailed 'bible' of what to look for. My lender [bank manager at TD] is a person I've dealt with since 1986 . Personally,I feel that we are in a good position & may have lucked into a good deal on a house[just because the last bidder had trouble getting some financing]. Anyway, I'll know by Friday the 13th Oct. if we're houseowners.

 

[Curiosity]

Missile

You lucky guy - having a handy son-in-law and some friends in the right places....It's kinda neat putting all the "fixing" yourself too if you are handy that way.

Sounds like you live in a town where handshakes are still honored. A fast disappearing custom I am sorry to say. Where I live, nothing is sacred except the dollar.

Will you let us know in a couple of weeks so we can send cyber housewarming gifts?

 

[Sassylassie]

Good luck Missle, I was freaked out with worry the first time we bought a house that I couldn't sleep for weeks. It passes. I've bought and sold so many now that I don't even break a sweat. Good luck!!!!