Royal Lepage

Lakes of Muskoka Brokerage, Independently Owned & Operated

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Sit back and relax, we have you covered!

Buying a Home: The Paperwork

Once you've got a contract on a home, then the fun starts-paperwork!

We submitted the signed contract to our mortgage lender and they sent us each (my husband and myself) a HUGE folder full of papers to sign, including the loan application. Most of them are just giving the lender permission to your information. You have to agree to get home owners insurance before closing, get title insurance, etc. Getting home owner's insurance is really easy. Just contact an agent (maybe the same person you use for auto!) and they will set you up. Because our insurance is paid through our escrow account, the insurance agent just sent the bill to our lender and we paid one year upfront at closing (about $600). Title insurance, on the other hand, is a 1-time fee that you pay, usually worked into your closing costs, that is just for peace of mind. Before closing, a title search is done to make sure there are no liens against the property or other legal issues. In case something is missed during the title search, that is why you get title insurance.

Your mortgage lender will also provide you with what's called a Good Faith Estimate. This is an estimate of what your closing costs will be! Your closing costs may include all of the following:

Wow! That's a lot! But it's definitely good to know ahead of time everything that you will be responsible for paying. After you sign all the documents and submit them to the underwriter, you just have to wait for approval. In the meantime, you will want to take care of having a home inspection and appraisal done.

Our mortgage lender arranged the appraisal. Basically, the appraisal is to ensure that the home you are buying is worth what you are taking a loan out for. The bank would be very uncomfortable lending someone $200,000 for a home worth only $150,000-for example. The appraisal cost about $500 (which we paid at closing).

While the lender takes care of arranging the appraisal, YOU are responsible for finding an inspector. Our wonderful real estate agent recommended one to us. If I remember correctly, it cost about $300 (which you pay directly to the inspector). You will want to be present during the inspection so you can see first hand any issues with the home. Our inspector was really helpful as he gave us a big binder full of details on everything he found, from major problems to safety recommendations. Thank goodness for the inspection though, because it came back that the furnace needed replacing! The heat exchange was broken.

When something major comes up in the inspection, you can then go back to the seller requesting action. They can either fix it, offer to pay something for it, or do nothing! Thankfully, our seller was nice enough to pay for half the cost of a new furnace. We ended up paying about $800 (our part) for a new, high efficiency furnace-not bad!

With all the paperwork taken care of (and the loan hopefully approved!), the only thing left is closing!..

One last thing, I'd like to give a big thanks to the people from WallaceLiving. They're a first-rate seniors appartment rental service in Nova Scotia. The concept for this post came about as a result of a discussion I had with someone over there. Anyway, I hope you enjoyed this content. Until next time.

Sources

http://vesic.com - Your photos were superb.
https://epolos.com/ - Utilize folks constantly.
http://camdendesignsinc.com - Very attractive web site.

Posted in Real Estate Post Date 10/26/2015


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Appraisal Overview

There are three approaches to value that we can consider – Income, Cost and Direct Sales Comparison. Depending on your property, we will gladly explain which approaches apply and can aid us in determining the market value, if that is the value that is sought after. There are many kinds of value that can be required, but, by far, market value is the most commonly required. This requires an in depth and firsthand knowledge of the local market place.

Common Myths

MYTH: An appraisal is the same as a Realtors Opinion of Value.

FALSE. An appraisal is an in depth view of the property with features and factors being compared to other properties with similar features and factors. The sales considered have to meet the definition of market value as laid out in CUSPAP. Appraisals signed by designated members have usefulness for financing and estate planning and settlement, whereas opinions of value typically do not.

Frequently Asked Questions

What is the cost of an appraisal?

That will depend on the purpose of the appraisal and the location of the property. How long will it take to complete the appraisal once an inspection takes place. Again, depending on the purpose of the appraisal, a typical re-financing assignment will be completed for the lender within 3 days. Referrals – our Clients have included Financial Institutions, Law Offices, The Federal Government, Private Lenders, Personal Property Owners, to mention a few.

 

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