From Property Virgins to Home Buyers
TV show guides couple through search, purchase
Get finances in order before you go shopping
Excerpt from an article By Heather Greenwood Davis - The Toronto Star
There were only four things that Glen and Sarah Bullen wanted in a new home: It needed to be detached with a driveway, have a spot for a barbecue in the backyard, a good-sized kitchen and cost no more than $300,000.
It seemed like a lot to ask of a Toronto housing market that is usually spoken about in million-dollar figures.
But within six weeks of telling their wishes to the production team of Property Virgins, a new HGTV show about first-time buyers, the couple had not only found what they wanted, they were living in it.
“My wife saw an ad in a real estate magazine and we thought, ‘can’t hurt,”’ says Glen, 32, an independent agent with a financial services company.
Three days later, on May 25, they purchased their first home for $285,000 - a two-bedroom, one bathroom, detached bungalow with a finished basement and an addition on the back of the house.
The fact that the Bullens’ purchase seemed to happen so seamlessly might be surprising to anyone who has ever entered the three-ring circus of buying a first home.
Understand financials
Start by understanding your own financial situation. “It’s important that you have your financials in order before going shopping,” stresses Rinomato. “When you get your credit score done there can be things in there you’re unaware of. The last surprise you want to get is one that shows up on your credit score when you go to close a deal.”
It’s also important to understand your mortgage options and obligations. “Really sit down and learn about mortgages. There’s literally hundreds of options for you. You don’t have to just walk into a bank and take what is offered,” she says.
“My advice is to find a mortgage specialist who will look at your entire profile and then suggest the best lending institution for you.”
Think starter not finisher
“We work with first-time buyers and we interview them and investigate what their needs are and what their wish list is,” she explains.
“We usually find out that their wish list is out of whack with reality.” She points out that the average Canadian is going to move every three to five years, so there will be plenty of opportunities for you to move up to the house of your dreams when you can afford it.
“A lot of first-time buyers tend to expect to get their dream home right off the bat,” she says. “Just think of it as a stepping stone to your ultimate goal.”
“Have a good long look at your lifestyle. There may be things you’re going to have to give up to get what you want,” she points out.
Don’t forget your closing costs. Fees from CMHC (Canada Mortgage and Housing Corporation), Land Transfer Tax, lawyer fees and more can hit you where it hurts if you’re not prepared.
Get help from professional
“Hiring a realtor is a great value for the buyer,” says Rinomato, “because the seller pays the realtor. Hook up with a great realtor and listen to their advice.”
But don’t expect your real estate agent to bring you a millionaire estate when you can only afford a cute shack.
“Don’t start the whole process until you’re really serious. It will save everyone a lot of time and heartache,” she says.
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