A question I posed on a Real Estate Forum to REALTORS® and this is their advice to a Buyers looking to purchase a house or condo in the Greater Toronto Area.

Jas Jagpal, Broker
D: 647.272.6629
E: jasjagpal@gmail.com

www.TorontoMarkhamRealEstate.com

RE/MAX Dynasty Realty Inc. Brokerage
905.471.0002

Ben Sage - Woodstock, Ontario

http://www.woodstockhomes.com/

Bettianne Hedges - Hamilton Market
http://www.welcometohamilton.com

Jill Price - Bancroft
http://www.jillprice.ca

Too often Buyers have expectations of what they "want", think they "know" what they can afford (or get from the bank) and then see properties, place an offer that gets accepted, deposit check is given and then a few days later they don't get financing.

Now your deposit money is tied up, your REALTOR® is embarrassed to speak to the seller's agent. You blame everyone else because it's easier to do so. You're left with a bad taste about the real estate process and are stressed out!

The professional REALTORS® don't want you to experience that! They want you to get a Mortgage Approval done first.

1. Now this sets a realistic Budget. You know exactly how much money you have for deposit, what the banks will lend, and in what range you can start shopping for a house.

Now when you put an offer you can do so with confidence. Not worried about - if you will get an approval?!

Secondly -in the GTA market where multiple offers are a norm. This financing condition can be waived if needed and makes your offer look better than those still needing a mortgage approval and hence giving you a better chance of winning the bidding wars.

So get mortgage approved... not just a pre-approval. They are two different things!

You'll need to bring a minimum of
1. 2 years of Tax Returns
2. Job Letter / Payment stubs / Bank Deposits
3. Complete paperwork so they can pull credit, etc.

For Self-Employed people... Mortgages are much tougher to get so make sure you do your "due-diligence" and get approved.

The vast majority of successful REALTORS® have gone through the trials and tribulations and networked with many REALTORS® and learned from their experiences and it only makes wise sense to listen to the advice of your REALTOR®.

If they tell you - don't quit your job - don't.

If they advice you- not to buy furniture, cars, etc. on your credit card while your waiting to close on your home - don't!

If they tell you- there is NO perfect house - because their ain't! As long as the home checks off your needs, you can always renovate to meet some of your wants.

Just remember, your Buyer REALTOR® is under LEGAL OBLIGATION to look after YOUR best interest.

You've signed the Buyer Representation Agreement and you will get Fiduciary duties from them.

1. Loyalty - act in your best interest

2. Obedience - obey your lawful instructions

3. Disclosure - reveal any information known that would influence your decision to buy or sell

4. Confidentiality - straight forward

5. Reasonable Care and Diligence - be competent to represent you through personal education and not providing information, like legal advice, they aren't licensed to.

6. Accounting - account for all money or property that is entrusted to them by buyer and seller. Especially the deposits.

As you see, your REALTOR® is working hard for you so do listen to their expertise and advice.

If your parents are going to be helping you with a down payment, or you trust their advice and will be counting on them to help you with feedback. Then you want them involved in the Buying process from the get go.

They should be part of the consultation process so they understand the home market today! They may have bought a house 5, 10 years ago and probably have forgotten the details and nuances of the buying process.

You acquired the services of a REALTOR® knowing that they are the market experts and can help you make the right buying decision and guide you through the home buying process to a successful closing with the least amount of stress.

Your REALTOR® should be able to help you with basics of the types of Mortgages there are and what they mean.

For example.

Open Mortgage- you can usually pay it off without any penalties.

Variable Mortgage- changes with the prime rate.

Fixed Rate Mortgage- your rate won't change for the term of the mortgage.

Closed Mortgage- You have it locked in for a term of 1, 2, 3, 4, 5, etc years.

There are many other factors to consider. If it is portable (just in case you decide to move). What are the penalties to pay off, just in case you need to sell and so on.

So it is important to where you expect yourself to be in 3 years, 5 years, etc. so you can get the best mortgage terms that meet your personal criteria.

Obviously no one can bank for the unknown and those things we just have to deal with when the time comes.

In the Toronto, GTA Markets, homes sell very quickly.

Especially those that are priced right and are in nice condition.

As a Buyer it shouldn't matter if this is the first house you viewed or the tenth.

If it meets your criteria you must act, otherwise someone else is going to. Many times this leads to "Buyer's remorse." You are searching for a home months later and still can't seem to find one and are always comparing to the "one that got away!"

Don't let this be you. Don't make that mistake. Have all your ducks in a row and be ready to pull the trigger.

Your REALTOR® can help you with your "fears" and guide you to what conditions to have and price to offer to start the negotiation process.

Quick tip from Jill Price in Cottage Country.... if you are looking to buy a cottage.

Go shopping for a cottage before the cottage life show at the end of March, after that you will be competing! And by June...the ones that are left are the ones that nobody else wanted.