First Time Buyers Week: Part 2
January 22, 2025 | Posted by: Sherry Corbitt
So now that we have reviewed your financing and know what your pre-approved amount is to buy…let’s meet your team that will get you do the day of closing and keys in your hand!
Before becoming a mortgage agent I was a realtor so I have an unique perspective understanding both sides of the business. I have 3 pieces of advice for working with a realtor:
1) Have your own dedicated realtor
Never, ever, ever just use the realtor from an open house or call them off the sign on the house you want to see because you think you will get a better deal on that home if both you and the seller use the same realtor. WRONG. First, in this market place it is rare that there isn’t multiple offers being presented at the same time so you really need to get your head and pocket book around the reality that you may need to put your best offer forward and asking for the realtor to take a hit on their commission just isn’t the norm these days. Having a realtor you know, like and trust is so very vital in feeling confident to make an offer on a house. If you work with the realtor that is already working with the sellers as their agent, do you think he/she will talk honest and say you are overpaying because you are emotionally attached to the home already? That agent, though a wonderfully nice agent and very competent at their job, already has a client: The seller! So go get your own representation and have them be your negotiating powerhouse to have your best interest in mind.
2) You can fire your agent
I know no one wants to fire someone but you have to feel that the agent you are working with has the time to devote to you (within reason, they are people too with families at home and other clients to manage so do not be ‘that client’ that no one wants to work with because guess what? They can fire you too if you are little Mr. or Mrs. Demanding Diva). Check your Buyers Agency agreement and talk with the realtor about your concerns before approaching this topic. Yes, you have to sign a Buyers Agency (a contract that makes it so you are working with that agent exclusively on your behalf) but if things aren’t working out, most will allow you to cancel the contract and part on happy terms.
3) Don’t hide anything from them (this goes for me as your mortgage broker too)!
- Being in the middle of a separation agreement and not having it finalized may cause a problem come closing.
- Oops, your down payment is in cash from some ‘under the table’ work you did for a buddy and the lender can’t count it because of the money laundering rules.
- Geez, who didn’t think it was a good idea to go and buy a new car and add a $650 payment per month to their debts before talking to their mortgage agent.
Having an open and honest line of communication with the people on your team will help get you into owning a home faster and smoother.
Other team members you will need:
1) Appraiser
The appraiser determines a property’s mortgage value, based on its condition and the selling price of comparable properties recently sold in the area. The market value enables the lender to determine the loan-to-value ratio of the mortgage (the amount of the mortgage versus the value of the home).
2) Home Inspector
They examine the home you intend to buy and evaluate its roof and structural stability, electrical work, plumbing, appliances, fireplaces, and furnace. This inspection is usually arranged by you, the buyer, and allows you to address any issues with the seller prior to closing, as well as anticipate any repairs that may be required.
3) Lawyer/Notary Public
Your lawyer or notary will review the Agreement of Purchase and Sale, ensure that all closing documents have been completed correctly (including the title search and title insurance), as well as file documents with the provincial land title office. Your lawyer or notary will also ensure your property is clear of all existing mortgages, judgments, and builder’s liens.
4) Insurance Broker
You will need home insurance (especially fire coverage) in order for a bank to put a mortgage on a property.
I have been working in Durham for many years and have fantastic relationships with the professionals you need to meet so let’s touch base and I can give you my personal recommendations for each member of your team.
A house is made of walls and beams, a home is made of love and dreams.
Sherry Corbitt, Mortgage Agent and Certified Divorce Financial Analyst
Mortgage Intelligence FSCO # 10428
