Cherie Dunn's - The Dunn Deal Team, Fort St. John Realtors - (250) 785-5520

CMHC Tips

Is There More?

Finding and purchasing your home can be an exciting and overwhelming process. You may be relieved once you finally take possession of your new house but be aware that the financial responsibilities of homeownership are just beginning.

Make Your Mortgage Payments on Time
Whether monthly, biweekly or weekly, be sure that you always make your mortgage payments on time. Making late payments (delinquency) may result in late charges and negatively affect your credit rating. Failing to make payments can even lead to more serious consequences like foreclosure.

A good way to prevent late payments is to have the amount automatically deducted from your account every month and to put at least three months' worth of mortgage payments in savings for emergency situations. If you are having trouble making payments, discuss the situation with your lender.

Costs of Operating a Home
Aside from your mortgage, property taxes and insurance, there are many other ongoing costs related to operating your home. These can include maintenance and repair, costs for services such as security alarm services, snow removal services and gardening services (if you wish to pay for these). If you have a condominium or strata, some of these expenses may be included as part of your monthly maintenance fee.

Saving for Emergencies
Even if you know how to do repairs yourself, there are still costs involved. Every building has a life cycle, which means that all parts of a building age and require major repairs or replacement at some point. For example, you might know that your roof will have to be replaced in a few years simply because of its age. Repairs like these are expected and can be planned for. However, many repairs are unexpected and can sometimes be costly.

Set aside an emergency fund to deal with unexpected problems ranging from major repairs to illness and job loss. A good guideline is saving 5% of your take-home pay and putting it in a special account.

Living Within Your Budget
Prepare a monthly budget and stick to it. You should monitor your spending every month and evaluate your progress in meeting your financial goals. If you continue to spend more than you are bringing in, you must find ways to cut back. If you are having trouble sticking to your budget, don't hesitate to ask a professional money manager for help.

The Final Steps

Closing Day
Closing day is the day when you finally achieve your goal — you take legal possession and finally get to call your new house your own. You are sure to feel great relief and satisfaction but remember that the homebuying process isn't over just yet. There are quite a few things that need to be done on closing day:

Your lender will provide the mortgage money to your lawyer/notary.
You must provide the balance of the purchase price to your lawyer/notary along with the closing costs.
Your lawyer/notary pays the vendor, registers the home in your name, finally providing you with a deed and the keys to your new home.

Hiring a Mover
It is now time to hire a mover. Friends or relatives may be able to recommend a professional moving company but don't forget to ask the mover for references. You will also want an estimate and an outline of fees (flat rate or hourly charge, etc.). Once you've selected a mover, it is a good idea to have the representative come to your home to see what will be moved and to revise the estimate if necessary.

During the move, you'll want to ensure that your belongings are insured. Your home or property insurance may cover goods in transit but call your broker or insurance company to be sure and to ask about the extent of coverage. Many moving companies offer additional insurance coverage. Be aware that professional movers are not responsible for items such as jewelry, currency or important papers. You will have to move these yourself.

If you decide to do your own packing, keep in mind that you will need the proper materials and that it could take up a lot of time.

The Big Day
On moving day, go through the house with the van supervisor and provide any special instructions. The supervisor will also make note of the condition of your goods on an inventory list. Go through the house with the supervisor to make sure that the list is complete and accurate. Then, when the van arrives at your new home, mark off the items on the mover's list as they are unloaded. Remember that even if the movers unload and unpack boxes and remove packing materials, they will not put dishes or linens into cupboards.

Saying goodbye to one home and neighbourhood and discovering a new one can be very exciting. Being prepared is the best way to make sure that it is not hectic as well. Plan ahead to make the transition as smooth as possible for everyone involved. That way, you can breathe easy and enjoy your new home without having to worry so much.

Ready To Buy?

Once you have found the home you would like to purchase, you need to present the vendor with an Offer to Purchase or an Agreement of Purchase and Sale. As your home is probably your biggest investment, it would be wise to work with your real estate agent and/or a lawyer/notary in preparing your offer. Remember that the Offer to Purchase or Agreement of Purchase and Sale is a legal document and should be carefully prepared.

Any offer or agreement will typically include:

Your legal name, the name of the vendor and the legal civic address of the property.
The purchase price offered.
The chattels that will be included in the purchase price (e.g.: window coverings, appliances or a satellite dish). Whatever items in or around the home that you think are included in the sale should be specifically stated in your offer.
The amount of deposit.
The closing day (date you take possession of the home) — usually 30 to 60 days from the date of agreement. It can also be 90 days or longer.
Request for a current land survey of the property.
Date when the offer becomes null and void.
Any other conditions that go with the offer, including property inspection and approval of mortgage financing.
The process of making an offer, receiving a counteroffer and then revising it again is not uncommon. The whole process can seem like a roller coaster ride — exciting, but stressful. It's all part of making the deal work best for you and the vendor.

What Professionals Do I Need?

Because purchasing a home is probably the biggest investment you will ever make, you'll definitely want a team of professionals working with you throughout the process.

The Real Estate Agent
No one will play a more important role in helping you find a home than your real estate agent. Your real estate agent's job is to:

Help you find the ideal home.
Write an Offer of Purchase.
Negotiate on your behalf to help you get the best possible deal.
Provide you with important information about the community, arrange and coordinate the home inspection and essentially save you time, trouble and money.