Updated from our First Time Buyer’s Archive. Originally posted on Jun13, 2007

Imagine falling in love with a home, making and offer only to find out later that you are not eligible for such amount?

Or another scenario: Competing with other buyers over your dream home, to find out the vendor accepted the other buyer’s offer JUST because they were already pre-approved.

It does happen. Often.

Understandingly, any vendor will favor a buyer who is prepared with a letter from the bank

Continue reading: Pre-approval: How it can benefit you as a home buyer

Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/

The asking price of a home should reflect the current market price, which is calculated quite differently from the municipal assessment. The city evaluates properties every three years (meaning they are often behind the going market values), and they base their assessments on the property itself and its neighbourhood.

To determine optimal asking price, a homeowner should get a comparative market analysis (CMA). This is done by

Continue reading: Asking Price: Comparative Market Analysis vs Municipal Assessments

Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/

Sometimes you find properties that have a municipal evaluation higher than the asking price. In most cases, it’s the other way around. So as a potential buyer, you might wonder whether or not this is an error — how can it be that the person is selling for less than the municipal evaluation

Continue reading: Asking (Selling) Price Less Than Municipal Evaluation?

Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/

To first-time buyers, closing costs are a mystery; most people have a slight idea of what they are, but don’t know what’s specifically involved or how much the cost will be. Many think closing costs refer to the notary fee, end of story. In reality, though, there’s more to it than that.

In addition to a down-payment on your mortgage, you (the buyer) will need to put aside a little extra for costs related to a home purchase. Here is a list of the usual costs involved

Continue reading: Home Buying Process: Closing Costs

Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/

Pre-qualification is the starting point in your search for mortgage financing. A quick snapshot is taken which includes income, existing debt, savings, length of employment, etc. All of these factors will then be analyzed to determine your loan eligibility.

Pre-approval is written documentation that shows you have the support of a lender who is willing to finance you. It means an underwriter has reviewed your loan application. Based on your income, debt ratio and savings, the underwriter provides the dollar amount you are eligible to borrow. Now you can shop around for houses that fit into that loan amount category.

Here is the nice thing about the pre-approval: It gives you the leverage to shop as a cash buyer!

• With a pre-approval in hand, you now have the power to negotiate.
• The seller will take your offer much more seriously knowing you are already approved by a lender.
• Pre-approval can also shorten the time it takes to close, making even a lower bid attractive to sellers who are seeking to move quickly.

What will my monthly payments be?

Continue reading: The difference between pre-qualification and pre-approval?

Posted By: Danuta Levitzki. Executive Manager of Mortgage Agency at HYPOTHECA Ac Accredited. With over 10 year experience, Danuta specializes in residential and multi-unit mortgage financing. Offering the lowest interest rates and finest mortgage service in Montreal, Qc. For home purchase pre-qualification, mortgage refinance, renewal or debt consolidation please visit RateDirect.ca http://www.ratedirect.ca

http://www.youtube.com/watch?v=YqDSNkCPEgs

Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/

The New Home Guarantee covers new condos that are part of small, one-to-fourstorey condo buildings. Highrise condo buildings are covered by private insurance plans.

Like all insurance policies, it’s important to understand fully the conditions of the Quebec government’s plan so you can protect yourself at every step during and after the construction process.

HERE ARE SOME TIPS:

1. Check with the Régie du bâtiment that the contractor is properly licensed and check his experience. Just because he holds a licence to install a foundation doesn’t necessarily mean he knows what he’s doing. [ Very Important!! - also check for any awards won by them, written articles and reviews about their company etc]

2. Make sure you read the entire condo purchase agreement so that you know exactly what you are buying and so that you understand your rights and liabilities relating to your condo and your building’s common spaces. This will help you make sure that at the end of construction, you get exactly what you were promised and that you are not liable for unforeseen payments to, for example, unpaid subcontractors.

3. The warranty covers up to $39,000 as a down payment. So don’t pay more than that. If the contractor goes bankrupt, you will probably lose anything above that amount. [ Again, do your homework about the previous work from the company to establish their credibility, financial strength, etc. Some units, depending their price, will require more than 39K as a downpayment

Continue reading: How to Protect Yourself When Buying New Construction

Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/