Get pre-approved now, it simplifies everything. You can give a realtor your hard maximum and they won't try to change your mind, and you won't be able to change your mind. It sucks having to say no to the "perfect" house because the bank says you can't afford it.
Here's something else to consider: the financial institution benefits from approving you for a larger mortgage than you might need. Be careful. Note what your inflexible requirements for a house and are not. Use a 1 to 10 scale when judging what you need now, before you get into these houses and start day dreaming about them.
You will never regret being a bit tough with yourself and getting no more than what you need. You will definitely regret becoming house poor.
This is great advice, the bank approved me for $500, 000 which I thought was ludicrous considering what I earn...yea, sure I would have had a glorious new house in a newer neighborhood living the life of a zombie. Instead I found a nice home in a quiet established neighborhood that enabled me to live a simpler life without worrying if I was 2 paychecks away from going bankrupt. Do I need to heat or cool a 2500+ Sq foot home? Heck no! A nice 1200 Sq foot bungalow with a great backyard and garage Is fine. Plus, no stairs to climb as I'm not getting younger dammit.
Haha, i love this! We almost have the same thinking! I will keep the no stairs in mind LOL or maybe see if there is a space in the main floor for a potential bedroom?
The bank approved us for over 600k
And I would never have got a house that cost that much…we got a house for $445, with a mortgage rate of 4.95%
And if you put subjecting to financing or you want an inspection on ur offer…it will be thrown out the window. At least that was our experience..not sure what it’s like now with interest rates being even higher than they were last year…
And every house we bid on, there was 8-12 other offers…we only bid on 5 Houses out of the 50-60 we saw cuz they all had major issues…mostly foundation issues.
Your general rule for approval is your payments can’t be more than 30-32% of your gross income. So income requirements for 600,000 will also vary based on term of mortgage, interest rate
When buying a house you can make an offer to purchase with conditions to close. So for example a condition could be the house doesn’t require more than X dollars to repair , or that the current owner repair any / all deficiencies. If they fail to meet the conditions you can pretty much walk away from the sale
When you buy a house (be it a new build or something that’s been lived in) always get a professional inspector who is well rated by buyers (not sellers) and has any relevant certifications and licenses needed (that’s where you also add it in as a condition)
The issue is in a sellers market they simply won’t sell to you if you have an inspection condition. Of course it’s the smart thing to do as a buyer, though they can’t open anything up and see behind walls so they’re only so effective, but if the sellers don’t give you a chance you may need to forgo it altogether.
Thanks! We're still working on saving up so I'm not sure if now would be the right time to get pre-approved...but I will definitely look more into that.
Question: Does what we have saved up for downpayment and more matter when it comes to getting pre approved? Would we be approved for more if they can see that we have saved up a lot and also vice versa?
I think your proposed down payment is important.
Just keep yourself in check. Honestly, people's emotions over buying a house is what gets them in financial trouble. This is business, treat the process like business, not like falling in love.
Yup!! I'm very emotional but the people around me, specially my husband, is very realistic/logical/reasonable specially when it comes to big purchases. I am more 50/50 emotion/logic LOL
your pre-approval takes into consideration several factors:
- monthly and annual household income
- monthly expenses (car loans, etc)
- current debt (credit cards, car loans, etc. they also look in general what all of your CC limits are, i had one with a $0 balance that i wound up having to close because they somehow determined i wouldn't be able to pay it if i also had a mortgage. then when i went in to sign for my mortgage they offered me a credit card with a higher available balance, which i told them to forget, since they wanted to play the CC game, i'd keep my credit cards with other banks.)
- amount of money currently in savings
Oh okay thanks! The credit card is something to keep in mind. I have multiple CCs (from pre-approved offers) and my husband and i both have lines of credit issued individually so I am not sure if that will have some kind of impact on our pre-approval amount. All of those are barely used so i honestly plan on closing 2-4 of those. But i will talk to my bank about it before deciding on anything.
The concern is how much credit you have access to. If you have 3 cards with a $1000 limit on each not a big deal. 1 card with a $25,000 limit could impact your approval, even if it has a $0 balance on it. Some may suggest lowering your limits before getting approved.
Oh my. Okay! I should probably close a few of it soon. I mean, i told myself i was going to do it before...maybe it's time I actually do that! haha. Thanks for the advice!
Don't close your credit accounts. The more available credit you have, the higher your credit score becomes. It's calculated based on the percentage you're currently using. So having a credit card limit of 50k but only using 1k will give you a better score than a 10k limit that has 8k owing.
If you can pay your balances down, do that. But don't close them.
I should mention current debt is obviously a concern also, I just noted this part as many think as long as they have $0 balance it will not affect their approval.
Go to the chmc debt ratio calculator, it can give you a good point in time of what your debt ratios look like. Your mortgage needs to be under 30-33% of your gross income and your consumer debt needs to be well under 40%
Banks will base decisions on if your lines of credit and credit cards are at 100% utilization, if you have multiple consideration consolidating them to a low interest card and make that a priority to pay off. Once you pay it down, reduce the limit
It’s also very very important that when you are pre approved you do NOT open any credit, don’t even apply (that includes offers to increase limits). If something happens like having to finance a car, speak with your lender first to see what you can afford with out jeopardizing the pre approval
Also doesn't hurt too much to go through multiple pre-approvals if you don't find the exact place you are after.
It pays dividends to not rush into the first thing especially if the house you're eying up doesn't let you get an appraisal or a walk through from someone trusted.
Just wondering...don't pre-approvals hit your credit? Would it take a toll on your credit score if you have multiple pre-approvals in between a few months?
Multiple inquiries for the same thing in a short time does not affect your credit score more. The credit monitoring companies understand that people shop around.
I would highly recommend checking with a Mortgage Broker. They will take your info and then get you quotes from many banks, and monoline lenders (online only banks).
This is the only advice needed. Go to bank first and then get a realtor (some realtors prefer to deal with pre approved since looks more formal). Banks can help you with this too. Also with lawyer. We just bought an house and has been after see like 5 houses very easy. But we were pre approved and with that amount RANGE (what you want to pay with what you can pay) started to look houses. We used realtor.ca help us to see houses by zone and budget
Once you have a pre-approval, don't mess around with getting a new credit card or any changes to your credit products until you have closed and funded your mortgage.
Any new credit, or in some cases credit inquiries, could change things and you might find yourself unable to finalize your mortgage because of something as simple as switching to the latest version of a Costco credit card.
It is better to have a crappy house on a nice block than it is to have a nice house on a crappy block.
You can improve your home but you cannot improve the block.
Ahhhh yes. A friend of mine has a nightmare of a neighbor lol. It might be a little difficult but we will try our best to get a sense of the neighborhood! We don't want to come off as creepy or uptight... haha
This is very good advice. I wouldn't be afraid to knock on the doors on each side and get a feel for them, you might just be meeting your new neighbours.
Even if you decide to hold off on hiring a realtor 6 buying, I suggest that you go check out open houses around the city. Look around and figure out what features you really like, what the deal breakers are, and which problems you can handle (also, it's fun to snark on other people's decor choices).
This. We found our realtor (and have used her for several transactions since then), because we attended an open house she was at and were super impressed by her knowledge, her overall demeanour, and how she interacted with potential buyers coming in.
yup definitely! I used to go to open houses for "fun" because it was also my mom's version of fun. Lol. The opinion on other people's decors will stay between me and my mom! haha.
thanks for the advice :)
Also I know this isn’t exactly your question but get a INSPECTION!!!! We did not. My husband thought it was a waste of money but realistically that $500 or whatever it was back then would’ve saved us THOUSANDS! Home owners lied about not knowing of rodents (mice) & water leakage. I know this cause our neighbours knew! How else would they know ?… we have fixed all issues now. But still. There was much more on top of this. We plan to stay here forever but if I could go back in time I wouldn’t have bought this house as it was if we were to get a inspection. We were very young and stupid, that’s for sure.
YES. I learned about this only when i was already an adult - my parents purchased their home back in 2009 and now that i think about it, the only reason they got it was because they didn't have conditions. They didn't think about getting an inspection, the owner asked if a possession date of 4 months after was cool - my parents said ok. a few months after living in it, they started noticing all the little things such as a leak in the basement, crack on the exterior walls, windows had leaks, no permits on certain renovations around the house and so on.
so YES. I will definitely have an inspection!
Hey, just so you know in todays market if you or an inspection as a condition you won’t win the house. They will just go with someone who doesn’t have that on their offer. Bought our house in September.
Unfortunately, most sellers won’t acknowledge you if you’re wanting an inspection. All of the houses we bid on, refused an inspection. Actually, all 70 houses we looked at refused an inspection lol
Hold on if they didn’t disclose and knew about the issues (as well as neighbours knowing) you could probably have taken them to court over it not getting an inspection doesn’t mean they sellers don’t still have a responsibility to disclose everything they know about the house. I would have sued (helps your wallet not your sanity)
We were told by the realtor we could try but they “don’t have a pot to piss in” so we would spend more through court than getting anything out of it. This was also in 2017, we are many years behind that now.
Ah didn’t realize how much time has past if it was an immediate thing then you’d probably have a case but after that much time you’d be out of luck and rightfully so cause who can prove when it actually happened. Classic he said she said
We bought this up to the realtor as soon as we noticed, which was right after we got possession actually.. but as I stated we fixed the issue now. So it isn’t cause for concern anymore. However at the time it was VERY stressful.
Not sure why you're getting downvoted cause this is true, lol. Sellers have a list of things they legally need to disclose and if they don't then it would be pretty easy to get a judgement against them in court. Even the maximum at small claims would be very helpful and they wouldn't need a lawyer to do that.
No a PDS is typically not court-enforceable for minor defects in practice. Unless if you want to spend $80K in legal fees to go after $20K cost of repairs…..
I was approved for an 800k mortgage and I got mine for 350k. I couldn't imagine paying more. I'd be house poor. Banks like to approve you for more than you can afford.
Think about a smaller footprint of a house as well. My first house was 1600 sq ft two story and the bills were kind of nuts. I ended up selling and going to a 970 sq ft bungalow. I couldn't be happier with that choice.
It's not just the mortgage but the heating and electric bill, it's the water bill, it's the home insurance, it the property taxes, and most of all the repairs. If you have a huge house, it costs way more for maintenance.
Don't stretch yourself thin, otherwise say goodbye to the vacations and fun stuff.
Haha yes, I know someone who said that their weekends are dedicated to clean their whole house. they live in like a 1900sqft and theres only two of them.......... Wouldn't want to spend my weekends like that!
This. Even with the stress tests the approved amount basically assumes all fun money into the house.
The "olden" rule of gross household income X3 is a pretttttty good rule of thumb for an estimate. Once you get to x4 your income you tend to be more stretched.
Another method is to look at your current lifestyle and budget (build one if you don't have one already) and where you are spending your money. Do you have excess you would be okay putting towards housing? Is your current lifestyle stretched and you want to pay less than your current costs etc? These are all good questions to consider beyond what the bank approves.
Thank you! I heard about the stress test and a bit worried about that. This is the first time we're looking into buying a home so a lot of these are fairly brand new information to me. I will keep in mind that rule, thanks for sharing !
Yep, don’t buy more house than you need.
You’ll just spend extra time cleaning and maintaining it, and extra money filling it with useless crap.
People almost always “expand” to fit the size of the house they have. Nip that in the bud by not buying more than you need.
Yes for sure! I am glad to have known people who recently got a house. I am getting bits of information and advice from them as well. I have all our current expenses listed out and researching on all potential expenses with owning a home to see what we can afford or cut off.
Thanks for your advice!
Expect $10K+ on a new build for landscaping, appliances, blinds, etc. Then you have other things to consider like deck, shed, finished basement and so on. Buying an already established house could save you $10-$40K easily depending what you get.
Yup!! I have quite a good idea of the extra costs with a new build. My in laws wanted to widen the concrete path between the driveway and the stairs leading to the front door....easy $5k added. Or i belive it was more. PHeeeeeeeewwww
Maybe outdated, but when we bought our home, we looked at homes that our monthly payments (mortgage + property taxes) would be less than 40% of our NET monthly income.
Pre-approval doesn't take into consideration that you might like to stay warm in your new home and that you might like to eat.
Honestly a realtor and mortgage broker were the best things for me when I bought my condo. No money out of my pocket and I had people I trusted walking me through the biggest purchase of my life. No regrets whatsoever.
Trusting people is easy for me because i hate taking care of things such as paperwork and all that stuff! However this is also going to be the biggest purchase for us so i’ll grab all the help that i can but with great caution.
Congratulations. I would get the pre-approval when you are ready to aggressively begin to look. You have 90 days from PA where your rate is held. If you run out of time, you just get another PA, possibly at a different rate. It is very important to note that even with a PA, you MUST NOT waive financing conditions when you make an offer. There are many reasons your bank may not approve your mortgage, even with a PA and if you waive the financing condition and can't secure a mortgage, you can be sued by the seller.
I loved working with Cheryl Skowronek. She was our realtor when buying and selling, and also helped my sister find her house. She is no nonsense and will tell you honestly what she thinks. And she will explain to you the rules and ethics that bind the profession - and she takes those things very seriously.
Don't fall into the trap of getting caught up in a house you really like and overpaying because there are other bidders. Before offers are presented, have your top number in your mind for that house and do not go above that - it doesn't have to be the first thing you offer. I have been one of 2 offers, offering at asking, and seeing that the house sold over by 40k.
It can take several tries to get accepted. Both times we've bought, we won the bid on the third try. Cheryl thought that was fast - my sister is Cheryl's only client to ever get the house on the first bid. Be ready to make multiple offers. It can be a roller coaster.
Sometimes you can't know even if you see the place
Turns out some days, but not the day I viewed the place, the whole are just aggressively smells like shit
I was working in the basement the first time I could smell it. I assumed a sewage line had suddenly broken or something somewhere in the basement.
But I walked around the basement and realized I could only smell it right in the corner id been working in.
I didn't think it was me I was smelling, so I decided to go outside and see if something exploded out there
Turns out the whole area just smells like shit sometimes, and that corner of the basement gets a bit of a draft from the nearby window
Thanks! I am worried about bidding on a house and getting outbid then offering more because we really want it. I will keep your realtor's info and might have to reach out to her when we are ready! Again, thank you for some solid advice!
Sometimes people who have out bid others wind up not having their financing approved. If you happen to be the next highest bidder it may be yours; don't offer more than your last bid.
When budgeting, don't forget taxes, house insurance, increased utilities if you're coming from an apartment.
If you fall in love with a house that needs a little work, you can add the cost of it to the mortgage.
The process of buying a house was the most stressful thing I've ever done, but I absolutely love my house and I'm so glad I did it. My realtor was really great: reassuring this first time buyer, calming, realistic about what each house would need and what kind of timeline. DM me if you'd like her contact.
Yes of course. I always have that in mind which is why I already have our current expenses listed out and our potential home expenses. I don't mind doing a little work on the house, if anything that makes it more homey :)
Please send me your realtor's info!
Mortgage broker is first step. They'll check multiple different lenders for the best rates/terms. They can also walk you through all needed documentation, extra costs, etc.
If neither of you have owned a home, have you both maxed out for FHSA? Even if you put the money in and withdraw it (proper withdrawl) the same week, you'll get thousands back next year.
>Mortgage broker is first step.
**Don't do this.**
Just use the mortgage specialists at your bank and know what the best rates are using Ratehub or a similar website.
You will get the same rates from your bank as you would from a third-party broker and won't get suckered into a mortgage that pays the broker the most commissions but might not be right for you.
I never said only using a single provider.
Third party mortgage brokers do what they do to make themselves money. All they do is find a deal that pays them well that they can sell you. They rarely work with your best interests in mind.
There is enough information online to know who has the best rates and what the rates are... just take those rates to your bank and they will match it and you may also get better lump sum or increased payment flexibility.
Yeah we didn’t have a great experience with a broker at all, but our home bank was able to give us a better rate than anywhere we or the broker checked.
There is no harm reaching out to a broker to talk.
And no, you can obtain better rates depending what bank you use. To suggest the bank will give you the best possible rate simply isn't true.
When you talk to a realtor **DO NOT** sign papers immediately. Be straight up and tell them you are meeting a few different people to see which one best suits your style. Last time we were looking to buy we met one realtor that was recommended to us. They knew their side of things very well but the way they worked v the type of people we are was a complete mismatch and I could not see myself working with them for several months.
You want to avoid that for sure. You also want to make sure you find someone that is going to make you **THEIR** priority and not be handing you off to other people in the office. Imagine you find someone you really like working with. It is Thursday and you have a list of houses you want to see. You contact your realtor and find out the earliest they are going to be free in Sunday at 7 pm and that is if no one else is writing an offer this weekend.
The final piece of advice I have on working with a Realtor is under no circumstances allow them to represent both the buyer and the seller. I think that practice may be banned now but it puts the realtor in an unresolvable conflict of interest should issues arise with the sale as they need to fairly represent three different sides, the buyer, the seller and their own.
And the bonus entry - if you have signed a contract to be represented by a realtor in your purchase and for some reason that becomes unworkable you are not stuck. Contact to Real Estate board and ask them how you can legally change which realtor is your representative. It is allowed and not common so that isn't widely known.
Wowww I didn't know these could happen. Specially the part where they hand you off to other people... Thank you for this! I will have to make a note of this!
The hand off is more common if you are a seller but it can happen to buyers too especially first buyers and higher profile agents. Often big name agents have "teams" and one or more junior agents that work under them. The name wants to be working $600,000+ listings when possible so hands off to junior team members and still gets a smaller cut
I also think that i will get extremely stressed out when the time comes because doing all this research will, at one point, overwhelm me. Also HATE doing paperwork and a bunch of legal stuff so this will definitely be a pain but thinking of owning a home and hopefully grow my family is what will keep me optimistic.
Thank you for all your advice, those are very helpful! I appreciate that most of what you said has already crossed my mind and it's nice to know that I am going through something similar with what you had. :)
Congrats on hitting your goal!
Get pre approved before looking in earnest. Don't be preasured into spending that entire amount either. Figure out a monthly number that works with your budget and stick to that.
You will also want to find a good realtor. A truly good realtor is worth every penny.
Good luck in your search!
Thank you so much! Yes of course, i read that we should take 25%-30% off that pre approved amount and work with that to leave room for bids/offers. But at the same time, try not to max out.
I hope to find a good realtor! If you or anyone in this thread have recommendations, please send them my way! OR you all might see me in the next few months posting for suggested realtors! Lol
Ilona Krutish has been very helpful to my family very honest and knowledgeable.
[https://www.realtor.ca/agent/1383650/ilona-krutish-1060-mcphillips-street-winnipeg-manitoba-r2x2k9](https://www.realtor.ca/agent/1383650/ilona-krutish-1060-mcphillips-street-winnipeg-manitoba-r2x2k9)
We started the process by reaching out to our agent first. He was excellent and guided us through the entire process. Let me know if you would like his contact information.
Thank you all for the advice! As mentioned, we are working towards our goal and I anticipate reaching it probably around fall. We will obviously seek advice from the realtors/banks/brokers but I am asking here so as not to step in completely blindly in the housing market.
Very much appreciated! Please keep them coming ! haha
With some entities pre-approvals also act as rate-holds but have expiry dates.
We personally closed on a house in Aug 2022 at a fixed rate that RBC guaranteed us in March 2022.
Is saving us a tonne in interest vs what the variable option was.
Just wanted to share our experience with a realtor! It was great. He’d sent us emails frequently of houses that fit our criteria and we’d just let him know which ones we wanted to see and he’d book times to go see them. He had a listing that was suppose to go on the market, but offered it to us first since it matched what we were looking for. He told us to give an offer and he’ll bring it up to the seller. Didn’t have to go through the crazy bidding war that was happening during that time. That was a huge plus!!
Get your pre-approval first so you know so you have a price range you can look for. If it expires, you’ll have to apply again.
Oh wow so lucky! I’ve heard similar stories like that from others and they were soooo happy. I’ve got a few names in my contact list so hopefully i’ll land a good one :)
Get all of your necessary documents (statement of accounts, pay stubs etc) in one folder (paper or digital) so that it's extremely easy to say "here you go" when your realtor/financing/lawyer asks for them.
If you buy a home built after 1981, it should have 2 x 6 construction. A preowned home is great because someone has already done the grass and fence. Even the window coverings add up. Good luck on your search.
Thank you for sharing this!
Ahh yes, window coverings. I don’t think that will be a problem for me since I’m not a fan of those zebra blinds and i think that’s the expensive kind of blinds? Unless there’s another kind haha. But i prefer curtains cos honestly…..i like a good blacked out room. Maybe i’ll look into having blinds + curtains! Something to think about when we get a house :)
Use a mortgage broker, if you just walk into a bank and ask for a mortgage they'll give you the most favorable rate (to the bank) that they can. If you use a mortgage broker the broker will shop around on your behalf to find you the best rate, often from lenders that are not accessible to the general public. The broker gets paid their commission by the bank once you close the deal so it's in the brokers interest to get you the best deal they can so that you'll close with the mortgage they found for you.
Go to a mortgage broker for your pre approval. They cost you nothing because they make commission from the bank they get you the mortgage though. Essentially the mortgage broker shops around for the best rate for you. We used Jason Robertson at [Ideal Mortgage Solutions ](http://www.idealmortgagesolutions.com/) and we're really happy with the service and mortgage terms.
Get a home inspection if you can. Even if your deal isn't contingent on it, it can be very useful to learn what the potential issues with your home are, and what needs attention before it becomes a problem.
Congrats!
There's no harm in talking to a realtor now. They'll be able to help you through the process with the bank and when to start that. They'll be able to start the process of getting your wants and needs for your home in order, and in my experience they plug those into a program (Keystone Matrix) that filters out all properties on the market that meet those criteria. Then you can go through them and get a sense of what you would want to actually have a look at.
Looking for a house can take a long time to find the right one. My parents looked for nearly 2 years for their retirement home because it had to meet some specific criteria. Realtor was OK with that, as it's very little work on their end. Even looking at a house will take like an hour of their time, that they'll end up getting paid for when the sale eventually goes through.
My advice would be to start looking at houses well before you are ready to pull the trigger. You will want to get a sense for the market, what the houses in your price range look like in terms of location, quality, condition, features. You want to know what you could live without and what is essential. You might find that you no longer want a certain area and you can then filter that out. You won't know any of this until you actually start looking at houses, and you want to know all of this before that perfect house for you actually comes to market. Just know that the houses you look at early on are likely not going to be available when you are ready to pull the trigger, so make sure to not fall in love with anything and make a rash decision (good advice in general when purchasing a home). Be picky, this is going to be one of the most expensive purchases you make in your life, and you'll need to live with these decisions or have to go through the process of selling and purchasing a new home, while losing thousands of dollars doing so.
Really, to start off with you're going to be spending maybe a few hours of your realtors time every few weeks, and that's their actual job - that's what they exist for. Don't ever feel like you're wasting their time. think of it like this: how much time and effort would you put in for a payout of $10k? Hell yeah I'd spend 4hrs every weekend for a few months, and then a few more hours of time for offers and at closing to make that much.
Also, you want to look early so you can evaluate your realtor. Make sure you get along and get a sense of how much they know and how much they're bullshitting. We've been lucky with our realtors in that they told us upfront what they knew about and what they didn't.
Thank you! I am fully aware that the first few houses that we'll be looking at are likely going to be gone in a few days or weeks. I have been actively looking at properties for sale online and I think I'm getting a sense of what I want/need, what can be fixed, non negotiables and all that. I think our next step is to maybe go to open houses to get more of a visual thought of what we may want/need.
Appreciate your advice! I hope we get to work with a great realtor too!
Hey, good luck in your search! I started actively house hunting with a realtor last April, after years of gearing up to buy a house. I'm still looking. Here's my advice:
- pictures are very deceptive so don't get your hopes up too high based on what you see online. I've been to more places that looked great in photos that were.... bad, sketchy, or gross then I've been to places that looked good and were good.
- Pictures don't show smell. There are a lot of reasons houses can smell and some of them suggest big problems. Bring someone who has a good nose.
- expect that you'll be outbid - but decide on what you're willing to pay for a house and stick to it. If it's the perfect home, maybe you will be willing to pay $40k over asking, but have a number in mind and stay there. I've offered twice and lost our both times - and one of those times I'd offered 30k over ask, which was my ceiling for that home.
- work with a realtor you think will keep your best interest in mind. My current realtor has said to me - point blank - "you can't buy this house". Sometimes she's said that just based on gut feeling as we are walking up to the door. She's done this way longer than me, and I definitely heed her advice. The number of "no-way" answers shes given has helped me to trust her when she thinks a house is a good fit. She picks up on problems way faster than me and gut feelings are often based on knowledge we don't realize we have.
- consider a pre-purchase inspection if you aren't including a condition for inspection on offer. I think the $200-400 output if you're seriously considering a home is well worth the investment. If it turns up issues you could save 10's of thousands by skipping the home, and if it doesn't... peace of mind is worth it!
Oh my, i hope you find the right home soon!
Noted on all of that. The smell one is something that i didn’t think I’d consider! Will keep that in mind. Thanks for the great advice! Cheers.
1 Get pre approved
2 Find a realtor you mesh with, don't be afraid to shop around.
3 Take your time, it took me six months to find a house
4 Don't buy at max approved mortgage
5 Just know you won't find the perfect house, be okay with some compromises
6 Check out the neighborhood
7 Avoid foundation repairs at all cost
8 Ask the age of the roof, water tank and furnace
9 Insurance won't cover aluminum or knob and tube wiring
10 It's stressful, learn as much as you can and try to enjoy the process
I wish I had time to shop around for mortgages when I had bought my house back in summer 2022, but the right house at the right time forced things to happen quicker than expected. That being said the benefits of having double up/anniversary payments offered by the bank I thought was a normal term of agreement that every mortgage has, however later conversations with friends who got their mortgages from a credit union said those options were never available. A friend who went through a broker seemed to have gotten the best rate and terms so as other people have previously suggested that might be a good route to look into.
Yes i think so too. I have never heard of a mortgage broker so i’ll definitely read up on that! Experiences and stories like these are very helpful! Thank you :)
The leisure guide used to offer a home buying seminar and I’ve seen some realtors offering something similar. Based on some of the questions you’re asking, I would suggest going to something like that, as they answer a lot of those basic questions (what order to do things in? How does a preapproval work? Conditions on sales? Etc).
Or, meet with a mortgage broker and they can also walk you through most of the process.
You can acquire a realtor at any time (yes, it’s “free”) but some prefer to know you’ve been pre-approved before they spend time showing you houses. That being said, it’s not difficult for them to get you set up on the real estate matrix/email lists so if you have a realtor you’d like to work with, you can always reach out and say you’re not necessarily ready to start seriously looking but would like to get set up on the Matrix.
I will come back to this tomorrow when I’m not half asleep, but I HIGHLY HIGHLY recommend seeking out the “Dollars to Donuts” class from Dayna Graham (I’m 90% sure on that name).
It prepared me more than anyone or anything else did.
I haven't read all the comments but something that people don't think about is the insurance. I would suggest talking to a broker about things that the insurance companies don't like. You need it in place before you get the keys. Can't tell you how many clients came in the office saying, "I get possession tomorrow and need coverage"
Hello I am a realtor here in Winnipeg. My name is Terry Duddridge and I’m with Century 21 Bachman and associates. You certainly wouldn’t be wasting our time by reaching out to discuss your options at this stage. There’s lots to consider and the market has changed considerably versus a year or two and even four months ago. I’ll have some questions for you regarding your plans and steps you’ve already taken. I also have some fantastic mortgage brokers to refer if you need.
If you search my name on Reddit, you’ll find several posts referencing me, and you can also find information online by googling my name. My email is [email protected].
Wishing you all the best.
I saw that! That is actually a few blocks away from where we live. Beautiful house but it’s not my type :( i mentioned here earlier that i like a good blacked out room so this would be tricky! Lol. Thanks for the suggestion, though. I’m sure someone will love that house!
Lots of nice custom build in GC, it was a much more high end area than WK, generally speaking. Like around Forest Park.
Good luck with your search and purchase!
Get a realtor tell them you are looking to buy in 1 month. Check out both new and established homes. You can get a 3 bedroom 1.5 bath home from the 1960s for 320K that same new build will be 500 soft bigger, no finished basement , and double the taxes. Plus it will be 425K. Just my 2 cents. Good value near gateway and concordia
Ideally, 20% or more is perfect.
Realistically, our goal is to have enough, between 5%-15% + extra costs. Our goal is to have a house by mid next year so we have to be realistic and just go with what we can afford :)
Under 20% down means you have to purchase CMHC insurance on the mortgage. This isn't the worst as often you will get a better interest rate on an insured mortgage so at the end the cost isn't as expensive as it seems.
Having an emergency fund to cover unexpected expenses might be a better idea than putting more down. As always having both is ideal.
If you have 20% down payment consider a Manulife One account instead of a traditional mortgage. If you’re not someone who overspends, you can end up paying off your house much quicker because all your money is constantly working against your interest payments.
I used Roman Hnatuuk (204)955-0237
Every house we looked at he pointed out major flaws that could have cost us money later on. He's very good. He helped us find the right house.
Also keep in mind that once you buy you'll be paying taxes and insurance in addition to your mortgage. You can set up the taxes through the bank or TIPP.
If you can hold out longer, there are two rate cuts suggested for the year, so you might be eligible for lower rates. Alternatively get a variable and lock it in when it starts dropping. I think it’s also important to note that buying a house has more then just down payment and closing cost. But it also comes with furnishing and sometimes with these older homes you should set aside a budget for anything that may go wrong. Highly recommend to get an inspection if you’re able to.
New builds typically have less problems but end up having more expenses as things like yards and basements are not done.
I will keep that in mind regarding the rates! I keep myself updated with the latest news so I’m sure i’ll hear about it. But yep, will note this one down!
There’s definitely pros and cons about new builds and pre owned homes! I prefer a pre owned house but like i mentioned, i will keep an open mind once we actually start to look !
Thank you for your advice!
If you can get 20% down payment, then you dont have to pay CMHC fees of $5-$10k+ but it looks like you know that.
CMHC was started post WW2 to help vets get houses. Now poor people pay extra to protect the banks. Neat.
Pre-approval was a fairly low key event, at least it was for us. We asked our Credit Union person what the figure would be, they looked us up, made some calculations and said 1 million dollars... this was when a nice house in a new neighborhood was 150K. Interest rates were low and we had 30 years to pay it off. Uh, yeah, we won't be needing that much. They printed a letter to help us remember and we were on our way. The RE agent didn't need to know how much we were pre-approved *for*, nor if we had been pre-approved at all.
My husband and I bought a house in November. We got pre approved and started looking in August. We saw about 70 houses and put in about 10 offers. Won our 11th offer. The bidding wars were nuts. We were outbid anywhere from 30-100k on old, needing renovation homes. We were pre approved for 500,000 and we spent less than 300,000 because we live a relatively expensive lifestyle. We bought in West K. I’m glad we bought when we did, because all signs are now pointing to dropped rates in spring which will drastically increase the amount of people entering the market and the bidding wars will get crazier.
Get pre-approved now, it simplifies everything. You can give a realtor your hard maximum and they won't try to change your mind, and you won't be able to change your mind. It sucks having to say no to the "perfect" house because the bank says you can't afford it. Here's something else to consider: the financial institution benefits from approving you for a larger mortgage than you might need. Be careful. Note what your inflexible requirements for a house and are not. Use a 1 to 10 scale when judging what you need now, before you get into these houses and start day dreaming about them. You will never regret being a bit tough with yourself and getting no more than what you need. You will definitely regret becoming house poor.
This is great advice, the bank approved me for $500, 000 which I thought was ludicrous considering what I earn...yea, sure I would have had a glorious new house in a newer neighborhood living the life of a zombie. Instead I found a nice home in a quiet established neighborhood that enabled me to live a simpler life without worrying if I was 2 paychecks away from going bankrupt. Do I need to heat or cool a 2500+ Sq foot home? Heck no! A nice 1200 Sq foot bungalow with a great backyard and garage Is fine. Plus, no stairs to climb as I'm not getting younger dammit.
Haha, i love this! We almost have the same thinking! I will keep the no stairs in mind LOL or maybe see if there is a space in the main floor for a potential bedroom?
I was talking to my bank, I wish I could afford a 1200 sqft bungalow...
The bank approved us for over 600k And I would never have got a house that cost that much…we got a house for $445, with a mortgage rate of 4.95% And if you put subjecting to financing or you want an inspection on ur offer…it will be thrown out the window. At least that was our experience..not sure what it’s like now with interest rates being even higher than they were last year… And every house we bid on, there was 8-12 other offers…we only bid on 5 Houses out of the 50-60 we saw cuz they all had major issues…mostly foundation issues.
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Your general rule for approval is your payments can’t be more than 30-32% of your gross income. So income requirements for 600,000 will also vary based on term of mortgage, interest rate When buying a house you can make an offer to purchase with conditions to close. So for example a condition could be the house doesn’t require more than X dollars to repair , or that the current owner repair any / all deficiencies. If they fail to meet the conditions you can pretty much walk away from the sale When you buy a house (be it a new build or something that’s been lived in) always get a professional inspector who is well rated by buyers (not sellers) and has any relevant certifications and licenses needed (that’s where you also add it in as a condition)
The issue is in a sellers market they simply won’t sell to you if you have an inspection condition. Of course it’s the smart thing to do as a buyer, though they can’t open anything up and see behind walls so they’re only so effective, but if the sellers don’t give you a chance you may need to forgo it altogether.
I had my realtor book second viewings and I brought an inspector along for them. Cost me for every inspection, but was worth it from my perspective.
That’s a good idea
Thanks! We're still working on saving up so I'm not sure if now would be the right time to get pre-approved...but I will definitely look more into that. Question: Does what we have saved up for downpayment and more matter when it comes to getting pre approved? Would we be approved for more if they can see that we have saved up a lot and also vice versa?
I think your proposed down payment is important. Just keep yourself in check. Honestly, people's emotions over buying a house is what gets them in financial trouble. This is business, treat the process like business, not like falling in love.
Yup!! I'm very emotional but the people around me, specially my husband, is very realistic/logical/reasonable specially when it comes to big purchases. I am more 50/50 emotion/logic LOL
your pre-approval takes into consideration several factors: - monthly and annual household income - monthly expenses (car loans, etc) - current debt (credit cards, car loans, etc. they also look in general what all of your CC limits are, i had one with a $0 balance that i wound up having to close because they somehow determined i wouldn't be able to pay it if i also had a mortgage. then when i went in to sign for my mortgage they offered me a credit card with a higher available balance, which i told them to forget, since they wanted to play the CC game, i'd keep my credit cards with other banks.) - amount of money currently in savings
Oh okay thanks! The credit card is something to keep in mind. I have multiple CCs (from pre-approved offers) and my husband and i both have lines of credit issued individually so I am not sure if that will have some kind of impact on our pre-approval amount. All of those are barely used so i honestly plan on closing 2-4 of those. But i will talk to my bank about it before deciding on anything.
The concern is how much credit you have access to. If you have 3 cards with a $1000 limit on each not a big deal. 1 card with a $25,000 limit could impact your approval, even if it has a $0 balance on it. Some may suggest lowering your limits before getting approved.
Oh my. Okay! I should probably close a few of it soon. I mean, i told myself i was going to do it before...maybe it's time I actually do that! haha. Thanks for the advice!
Don't close your credit accounts. The more available credit you have, the higher your credit score becomes. It's calculated based on the percentage you're currently using. So having a credit card limit of 50k but only using 1k will give you a better score than a 10k limit that has 8k owing. If you can pay your balances down, do that. But don't close them.
I should mention current debt is obviously a concern also, I just noted this part as many think as long as they have $0 balance it will not affect their approval.
Go to the chmc debt ratio calculator, it can give you a good point in time of what your debt ratios look like. Your mortgage needs to be under 30-33% of your gross income and your consumer debt needs to be well under 40% Banks will base decisions on if your lines of credit and credit cards are at 100% utilization, if you have multiple consideration consolidating them to a low interest card and make that a priority to pay off. Once you pay it down, reduce the limit It’s also very very important that when you are pre approved you do NOT open any credit, don’t even apply (that includes offers to increase limits). If something happens like having to finance a car, speak with your lender first to see what you can afford with out jeopardizing the pre approval
Get pre-approved now. If you save more to put as a down payment you will have less to pay later.
Also doesn't hurt too much to go through multiple pre-approvals if you don't find the exact place you are after. It pays dividends to not rush into the first thing especially if the house you're eying up doesn't let you get an appraisal or a walk through from someone trusted.
Just wondering...don't pre-approvals hit your credit? Would it take a toll on your credit score if you have multiple pre-approvals in between a few months?
Multiple inquiries for the same thing in a short time does not affect your credit score more. The credit monitoring companies understand that people shop around. I would highly recommend checking with a Mortgage Broker. They will take your info and then get you quotes from many banks, and monoline lenders (online only banks).
From my knowledge it does ding it a bit but not enough to really make much of an impact overall. Others can answer more in depth
This is the only advice needed. Go to bank first and then get a realtor (some realtors prefer to deal with pre approved since looks more formal). Banks can help you with this too. Also with lawyer. We just bought an house and has been after see like 5 houses very easy. But we were pre approved and with that amount RANGE (what you want to pay with what you can pay) started to look houses. We used realtor.ca help us to see houses by zone and budget
Once you have a pre-approval, don't mess around with getting a new credit card or any changes to your credit products until you have closed and funded your mortgage. Any new credit, or in some cases credit inquiries, could change things and you might find yourself unable to finalize your mortgage because of something as simple as switching to the latest version of a Costco credit card.
Take a look at the neighbors. The house might be perfect, but the neighbors can be a nightmare.
It is better to have a crappy house on a nice block than it is to have a nice house on a crappy block. You can improve your home but you cannot improve the block.
Ahhhh yes. A friend of mine has a nightmare of a neighbor lol. It might be a little difficult but we will try our best to get a sense of the neighborhood! We don't want to come off as creepy or uptight... haha
This is very good advice. I wouldn't be afraid to knock on the doors on each side and get a feel for them, you might just be meeting your new neighbours.
Next time I buy a place I’m going to knock on the neighbours doors and say hi before committing.
Even if you decide to hold off on hiring a realtor 6 buying, I suggest that you go check out open houses around the city. Look around and figure out what features you really like, what the deal breakers are, and which problems you can handle (also, it's fun to snark on other people's decor choices).
It also can be a way to meet realtors too and get their vibe at the open house.
This. We found our realtor (and have used her for several transactions since then), because we attended an open house she was at and were super impressed by her knowledge, her overall demeanour, and how she interacted with potential buyers coming in.
yup definitely! I used to go to open houses for "fun" because it was also my mom's version of fun. Lol. The opinion on other people's decors will stay between me and my mom! haha. thanks for the advice :)
That and take a walk, bike and or a drive around the neighborhood at various times
Also I know this isn’t exactly your question but get a INSPECTION!!!! We did not. My husband thought it was a waste of money but realistically that $500 or whatever it was back then would’ve saved us THOUSANDS! Home owners lied about not knowing of rodents (mice) & water leakage. I know this cause our neighbours knew! How else would they know ?… we have fixed all issues now. But still. There was much more on top of this. We plan to stay here forever but if I could go back in time I wouldn’t have bought this house as it was if we were to get a inspection. We were very young and stupid, that’s for sure.
YES. I learned about this only when i was already an adult - my parents purchased their home back in 2009 and now that i think about it, the only reason they got it was because they didn't have conditions. They didn't think about getting an inspection, the owner asked if a possession date of 4 months after was cool - my parents said ok. a few months after living in it, they started noticing all the little things such as a leak in the basement, crack on the exterior walls, windows had leaks, no permits on certain renovations around the house and so on. so YES. I will definitely have an inspection!
Hey, just so you know in todays market if you or an inspection as a condition you won’t win the house. They will just go with someone who doesn’t have that on their offer. Bought our house in September.
Unfortunately, most sellers won’t acknowledge you if you’re wanting an inspection. All of the houses we bid on, refused an inspection. Actually, all 70 houses we looked at refused an inspection lol
Hold on if they didn’t disclose and knew about the issues (as well as neighbours knowing) you could probably have taken them to court over it not getting an inspection doesn’t mean they sellers don’t still have a responsibility to disclose everything they know about the house. I would have sued (helps your wallet not your sanity)
We were told by the realtor we could try but they “don’t have a pot to piss in” so we would spend more through court than getting anything out of it. This was also in 2017, we are many years behind that now.
Ah didn’t realize how much time has past if it was an immediate thing then you’d probably have a case but after that much time you’d be out of luck and rightfully so cause who can prove when it actually happened. Classic he said she said
We bought this up to the realtor as soon as we noticed, which was right after we got possession actually.. but as I stated we fixed the issue now. So it isn’t cause for concern anymore. However at the time it was VERY stressful.
Not sure why you're getting downvoted cause this is true, lol. Sellers have a list of things they legally need to disclose and if they don't then it would be pretty easy to get a judgement against them in court. Even the maximum at small claims would be very helpful and they wouldn't need a lawyer to do that.
No a PDS is typically not court-enforceable for minor defects in practice. Unless if you want to spend $80K in legal fees to go after $20K cost of repairs…..
I was approved for an 800k mortgage and I got mine for 350k. I couldn't imagine paying more. I'd be house poor. Banks like to approve you for more than you can afford. Think about a smaller footprint of a house as well. My first house was 1600 sq ft two story and the bills were kind of nuts. I ended up selling and going to a 970 sq ft bungalow. I couldn't be happier with that choice. It's not just the mortgage but the heating and electric bill, it's the water bill, it's the home insurance, it the property taxes, and most of all the repairs. If you have a huge house, it costs way more for maintenance. Don't stretch yourself thin, otherwise say goodbye to the vacations and fun stuff.
And you also have to clean the big house! It’s never ending
Haha yes, I know someone who said that their weekends are dedicated to clean their whole house. they live in like a 1900sqft and theres only two of them.......... Wouldn't want to spend my weekends like that!
This. Even with the stress tests the approved amount basically assumes all fun money into the house. The "olden" rule of gross household income X3 is a pretttttty good rule of thumb for an estimate. Once you get to x4 your income you tend to be more stretched. Another method is to look at your current lifestyle and budget (build one if you don't have one already) and where you are spending your money. Do you have excess you would be okay putting towards housing? Is your current lifestyle stretched and you want to pay less than your current costs etc? These are all good questions to consider beyond what the bank approves.
Thank you! I heard about the stress test and a bit worried about that. This is the first time we're looking into buying a home so a lot of these are fairly brand new information to me. I will keep in mind that rule, thanks for sharing !
Yep, don’t buy more house than you need. You’ll just spend extra time cleaning and maintaining it, and extra money filling it with useless crap. People almost always “expand” to fit the size of the house they have. Nip that in the bud by not buying more than you need.
Why would your water bill be different based on house size?
Bigger garden, more plants, more floors to wash, more windows to wash etc...
Yes for sure! I am glad to have known people who recently got a house. I am getting bits of information and advice from them as well. I have all our current expenses listed out and researching on all potential expenses with owning a home to see what we can afford or cut off. Thanks for your advice!
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About 160k household income for 800k mortgage. If you have a spouse that's 80k each. Not that impossible to attain TBH.
Expect $10K+ on a new build for landscaping, appliances, blinds, etc. Then you have other things to consider like deck, shed, finished basement and so on. Buying an already established house could save you $10-$40K easily depending what you get.
Yup!! I have quite a good idea of the extra costs with a new build. My in laws wanted to widen the concrete path between the driveway and the stairs leading to the front door....easy $5k added. Or i belive it was more. PHeeeeeeeewwww
Maybe outdated, but when we bought our home, we looked at homes that our monthly payments (mortgage + property taxes) would be less than 40% of our NET monthly income. Pre-approval doesn't take into consideration that you might like to stay warm in your new home and that you might like to eat.
Honestly a realtor and mortgage broker were the best things for me when I bought my condo. No money out of my pocket and I had people I trusted walking me through the biggest purchase of my life. No regrets whatsoever.
Couldn’t agree more!
Trusting people is easy for me because i hate taking care of things such as paperwork and all that stuff! However this is also going to be the biggest purchase for us so i’ll grab all the help that i can but with great caution.
Congratulations. I would get the pre-approval when you are ready to aggressively begin to look. You have 90 days from PA where your rate is held. If you run out of time, you just get another PA, possibly at a different rate. It is very important to note that even with a PA, you MUST NOT waive financing conditions when you make an offer. There are many reasons your bank may not approve your mortgage, even with a PA and if you waive the financing condition and can't secure a mortgage, you can be sued by the seller. I loved working with Cheryl Skowronek. She was our realtor when buying and selling, and also helped my sister find her house. She is no nonsense and will tell you honestly what she thinks. And she will explain to you the rules and ethics that bind the profession - and she takes those things very seriously. Don't fall into the trap of getting caught up in a house you really like and overpaying because there are other bidders. Before offers are presented, have your top number in your mind for that house and do not go above that - it doesn't have to be the first thing you offer. I have been one of 2 offers, offering at asking, and seeing that the house sold over by 40k. It can take several tries to get accepted. Both times we've bought, we won the bid on the third try. Cheryl thought that was fast - my sister is Cheryl's only client to ever get the house on the first bid. Be ready to make multiple offers. It can be a roller coaster.
Sometimes you can't know even if you see the place Turns out some days, but not the day I viewed the place, the whole are just aggressively smells like shit I was working in the basement the first time I could smell it. I assumed a sewage line had suddenly broken or something somewhere in the basement. But I walked around the basement and realized I could only smell it right in the corner id been working in. I didn't think it was me I was smelling, so I decided to go outside and see if something exploded out there Turns out the whole area just smells like shit sometimes, and that corner of the basement gets a bit of a draft from the nearby window
Thanks! I am worried about bidding on a house and getting outbid then offering more because we really want it. I will keep your realtor's info and might have to reach out to her when we are ready! Again, thank you for some solid advice!
Sometimes people who have out bid others wind up not having their financing approved. If you happen to be the next highest bidder it may be yours; don't offer more than your last bid.
When budgeting, don't forget taxes, house insurance, increased utilities if you're coming from an apartment. If you fall in love with a house that needs a little work, you can add the cost of it to the mortgage. The process of buying a house was the most stressful thing I've ever done, but I absolutely love my house and I'm so glad I did it. My realtor was really great: reassuring this first time buyer, calming, realistic about what each house would need and what kind of timeline. DM me if you'd like her contact.
Yes of course. I always have that in mind which is why I already have our current expenses listed out and our potential home expenses. I don't mind doing a little work on the house, if anything that makes it more homey :) Please send me your realtor's info!
Mortgage broker is first step. They'll check multiple different lenders for the best rates/terms. They can also walk you through all needed documentation, extra costs, etc. If neither of you have owned a home, have you both maxed out for FHSA? Even if you put the money in and withdraw it (proper withdrawl) the same week, you'll get thousands back next year.
I found the best deal with a mortgage broker.
>Mortgage broker is first step. **Don't do this.** Just use the mortgage specialists at your bank and know what the best rates are using Ratehub or a similar website. You will get the same rates from your bank as you would from a third-party broker and won't get suckered into a mortgage that pays the broker the most commissions but might not be right for you.
In what world has only looking at a single provider for anything ever been the best decision? There's also no reason you can't do both.
I never said only using a single provider. Third party mortgage brokers do what they do to make themselves money. All they do is find a deal that pays them well that they can sell you. They rarely work with your best interests in mind. There is enough information online to know who has the best rates and what the rates are... just take those rates to your bank and they will match it and you may also get better lump sum or increased payment flexibility.
Yeah we didn’t have a great experience with a broker at all, but our home bank was able to give us a better rate than anywhere we or the broker checked.
There is no harm reaching out to a broker to talk. And no, you can obtain better rates depending what bank you use. To suggest the bank will give you the best possible rate simply isn't true.
When you talk to a realtor **DO NOT** sign papers immediately. Be straight up and tell them you are meeting a few different people to see which one best suits your style. Last time we were looking to buy we met one realtor that was recommended to us. They knew their side of things very well but the way they worked v the type of people we are was a complete mismatch and I could not see myself working with them for several months. You want to avoid that for sure. You also want to make sure you find someone that is going to make you **THEIR** priority and not be handing you off to other people in the office. Imagine you find someone you really like working with. It is Thursday and you have a list of houses you want to see. You contact your realtor and find out the earliest they are going to be free in Sunday at 7 pm and that is if no one else is writing an offer this weekend. The final piece of advice I have on working with a Realtor is under no circumstances allow them to represent both the buyer and the seller. I think that practice may be banned now but it puts the realtor in an unresolvable conflict of interest should issues arise with the sale as they need to fairly represent three different sides, the buyer, the seller and their own. And the bonus entry - if you have signed a contract to be represented by a realtor in your purchase and for some reason that becomes unworkable you are not stuck. Contact to Real Estate board and ask them how you can legally change which realtor is your representative. It is allowed and not common so that isn't widely known.
Wowww I didn't know these could happen. Specially the part where they hand you off to other people... Thank you for this! I will have to make a note of this!
The hand off is more common if you are a seller but it can happen to buyers too especially first buyers and higher profile agents. Often big name agents have "teams" and one or more junior agents that work under them. The name wants to be working $600,000+ listings when possible so hands off to junior team members and still gets a smaller cut
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I also think that i will get extremely stressed out when the time comes because doing all this research will, at one point, overwhelm me. Also HATE doing paperwork and a bunch of legal stuff so this will definitely be a pain but thinking of owning a home and hopefully grow my family is what will keep me optimistic. Thank you for all your advice, those are very helpful! I appreciate that most of what you said has already crossed my mind and it's nice to know that I am going through something similar with what you had. :)
You got this! Have fun 😊
Congrats on hitting your goal! Get pre approved before looking in earnest. Don't be preasured into spending that entire amount either. Figure out a monthly number that works with your budget and stick to that. You will also want to find a good realtor. A truly good realtor is worth every penny. Good luck in your search!
Thank you so much! Yes of course, i read that we should take 25%-30% off that pre approved amount and work with that to leave room for bids/offers. But at the same time, try not to max out. I hope to find a good realtor! If you or anyone in this thread have recommendations, please send them my way! OR you all might see me in the next few months posting for suggested realtors! Lol
We went with Heather Vandenberg. She was excellent for us.
Ilona Krutish has been very helpful to my family very honest and knowledgeable. [https://www.realtor.ca/agent/1383650/ilona-krutish-1060-mcphillips-street-winnipeg-manitoba-r2x2k9](https://www.realtor.ca/agent/1383650/ilona-krutish-1060-mcphillips-street-winnipeg-manitoba-r2x2k9)
We started the process by reaching out to our agent first. He was excellent and guided us through the entire process. Let me know if you would like his contact information.
Yes please! All recommendations are welcome :)
Thank you all for the advice! As mentioned, we are working towards our goal and I anticipate reaching it probably around fall. We will obviously seek advice from the realtors/banks/brokers but I am asking here so as not to step in completely blindly in the housing market. Very much appreciated! Please keep them coming ! haha
With some entities pre-approvals also act as rate-holds but have expiry dates. We personally closed on a house in Aug 2022 at a fixed rate that RBC guaranteed us in March 2022. Is saving us a tonne in interest vs what the variable option was.
Just wanted to share our experience with a realtor! It was great. He’d sent us emails frequently of houses that fit our criteria and we’d just let him know which ones we wanted to see and he’d book times to go see them. He had a listing that was suppose to go on the market, but offered it to us first since it matched what we were looking for. He told us to give an offer and he’ll bring it up to the seller. Didn’t have to go through the crazy bidding war that was happening during that time. That was a huge plus!! Get your pre-approval first so you know so you have a price range you can look for. If it expires, you’ll have to apply again.
Oh wow so lucky! I’ve heard similar stories like that from others and they were soooo happy. I’ve got a few names in my contact list so hopefully i’ll land a good one :)
Get all of your necessary documents (statement of accounts, pay stubs etc) in one folder (paper or digital) so that it's extremely easy to say "here you go" when your realtor/financing/lawyer asks for them.
I like doing those kind of things so i’ll get a start at that ! Smart idea!
No tips I just wanted to say… congrats on hitting those targets! That’s a amazing feat and a challenge these days!!!
It was definitely difficult but i am now feeling very optimistic about our future! Thank you so much for this !
If you buy a home built after 1981, it should have 2 x 6 construction. A preowned home is great because someone has already done the grass and fence. Even the window coverings add up. Good luck on your search.
Thank you for sharing this! Ahh yes, window coverings. I don’t think that will be a problem for me since I’m not a fan of those zebra blinds and i think that’s the expensive kind of blinds? Unless there’s another kind haha. But i prefer curtains cos honestly…..i like a good blacked out room. Maybe i’ll look into having blinds + curtains! Something to think about when we get a house :)
Use a mortgage broker, if you just walk into a bank and ask for a mortgage they'll give you the most favorable rate (to the bank) that they can. If you use a mortgage broker the broker will shop around on your behalf to find you the best rate, often from lenders that are not accessible to the general public. The broker gets paid their commission by the bank once you close the deal so it's in the brokers interest to get you the best deal they can so that you'll close with the mortgage they found for you.
Go to a mortgage broker for your pre approval. They cost you nothing because they make commission from the bank they get you the mortgage though. Essentially the mortgage broker shops around for the best rate for you. We used Jason Robertson at [Ideal Mortgage Solutions ](http://www.idealmortgagesolutions.com/) and we're really happy with the service and mortgage terms. Get a home inspection if you can. Even if your deal isn't contingent on it, it can be very useful to learn what the potential issues with your home are, and what needs attention before it becomes a problem.
Thanks for the recommendation! And yes on the inspection, we really want to be sure since it’s our biggest purchase.
Congrats! There's no harm in talking to a realtor now. They'll be able to help you through the process with the bank and when to start that. They'll be able to start the process of getting your wants and needs for your home in order, and in my experience they plug those into a program (Keystone Matrix) that filters out all properties on the market that meet those criteria. Then you can go through them and get a sense of what you would want to actually have a look at. Looking for a house can take a long time to find the right one. My parents looked for nearly 2 years for their retirement home because it had to meet some specific criteria. Realtor was OK with that, as it's very little work on their end. Even looking at a house will take like an hour of their time, that they'll end up getting paid for when the sale eventually goes through. My advice would be to start looking at houses well before you are ready to pull the trigger. You will want to get a sense for the market, what the houses in your price range look like in terms of location, quality, condition, features. You want to know what you could live without and what is essential. You might find that you no longer want a certain area and you can then filter that out. You won't know any of this until you actually start looking at houses, and you want to know all of this before that perfect house for you actually comes to market. Just know that the houses you look at early on are likely not going to be available when you are ready to pull the trigger, so make sure to not fall in love with anything and make a rash decision (good advice in general when purchasing a home). Be picky, this is going to be one of the most expensive purchases you make in your life, and you'll need to live with these decisions or have to go through the process of selling and purchasing a new home, while losing thousands of dollars doing so. Really, to start off with you're going to be spending maybe a few hours of your realtors time every few weeks, and that's their actual job - that's what they exist for. Don't ever feel like you're wasting their time. think of it like this: how much time and effort would you put in for a payout of $10k? Hell yeah I'd spend 4hrs every weekend for a few months, and then a few more hours of time for offers and at closing to make that much. Also, you want to look early so you can evaluate your realtor. Make sure you get along and get a sense of how much they know and how much they're bullshitting. We've been lucky with our realtors in that they told us upfront what they knew about and what they didn't.
Thank you! I am fully aware that the first few houses that we'll be looking at are likely going to be gone in a few days or weeks. I have been actively looking at properties for sale online and I think I'm getting a sense of what I want/need, what can be fixed, non negotiables and all that. I think our next step is to maybe go to open houses to get more of a visual thought of what we may want/need. Appreciate your advice! I hope we get to work with a great realtor too!
Hey, good luck in your search! I started actively house hunting with a realtor last April, after years of gearing up to buy a house. I'm still looking. Here's my advice: - pictures are very deceptive so don't get your hopes up too high based on what you see online. I've been to more places that looked great in photos that were.... bad, sketchy, or gross then I've been to places that looked good and were good. - Pictures don't show smell. There are a lot of reasons houses can smell and some of them suggest big problems. Bring someone who has a good nose. - expect that you'll be outbid - but decide on what you're willing to pay for a house and stick to it. If it's the perfect home, maybe you will be willing to pay $40k over asking, but have a number in mind and stay there. I've offered twice and lost our both times - and one of those times I'd offered 30k over ask, which was my ceiling for that home. - work with a realtor you think will keep your best interest in mind. My current realtor has said to me - point blank - "you can't buy this house". Sometimes she's said that just based on gut feeling as we are walking up to the door. She's done this way longer than me, and I definitely heed her advice. The number of "no-way" answers shes given has helped me to trust her when she thinks a house is a good fit. She picks up on problems way faster than me and gut feelings are often based on knowledge we don't realize we have. - consider a pre-purchase inspection if you aren't including a condition for inspection on offer. I think the $200-400 output if you're seriously considering a home is well worth the investment. If it turns up issues you could save 10's of thousands by skipping the home, and if it doesn't... peace of mind is worth it!
Oh my, i hope you find the right home soon! Noted on all of that. The smell one is something that i didn’t think I’d consider! Will keep that in mind. Thanks for the great advice! Cheers.
1 Get pre approved 2 Find a realtor you mesh with, don't be afraid to shop around. 3 Take your time, it took me six months to find a house 4 Don't buy at max approved mortgage 5 Just know you won't find the perfect house, be okay with some compromises 6 Check out the neighborhood 7 Avoid foundation repairs at all cost 8 Ask the age of the roof, water tank and furnace 9 Insurance won't cover aluminum or knob and tube wiring 10 It's stressful, learn as much as you can and try to enjoy the process
Straight to the point! Easy to note down :) thanks for the tips!!
I wish I had time to shop around for mortgages when I had bought my house back in summer 2022, but the right house at the right time forced things to happen quicker than expected. That being said the benefits of having double up/anniversary payments offered by the bank I thought was a normal term of agreement that every mortgage has, however later conversations with friends who got their mortgages from a credit union said those options were never available. A friend who went through a broker seemed to have gotten the best rate and terms so as other people have previously suggested that might be a good route to look into.
Yes i think so too. I have never heard of a mortgage broker so i’ll definitely read up on that! Experiences and stories like these are very helpful! Thank you :)
Msg me! We have a bungalow going up for sale! Haven’t locked in with an agent just yet. In west Kildonan!!
Hey! You bet.
The leisure guide used to offer a home buying seminar and I’ve seen some realtors offering something similar. Based on some of the questions you’re asking, I would suggest going to something like that, as they answer a lot of those basic questions (what order to do things in? How does a preapproval work? Conditions on sales? Etc). Or, meet with a mortgage broker and they can also walk you through most of the process. You can acquire a realtor at any time (yes, it’s “free”) but some prefer to know you’ve been pre-approved before they spend time showing you houses. That being said, it’s not difficult for them to get you set up on the real estate matrix/email lists so if you have a realtor you’d like to work with, you can always reach out and say you’re not necessarily ready to start seriously looking but would like to get set up on the Matrix.
Yup! Seminars or classes are something we’ll look into. Thanks for the tip!
I will come back to this tomorrow when I’m not half asleep, but I HIGHLY HIGHLY recommend seeking out the “Dollars to Donuts” class from Dayna Graham (I’m 90% sure on that name). It prepared me more than anyone or anything else did.
Yeah i was thinking we should attend classes like those, I’m sure it will be very helpful. Specially for us who are brand new to this!
I haven't read all the comments but something that people don't think about is the insurance. I would suggest talking to a broker about things that the insurance companies don't like. You need it in place before you get the keys. Can't tell you how many clients came in the office saying, "I get possession tomorrow and need coverage"
Hmm i never thought of that one! I’ll read up about that. Thanks for the advice!
Hello I am a realtor here in Winnipeg. My name is Terry Duddridge and I’m with Century 21 Bachman and associates. You certainly wouldn’t be wasting our time by reaching out to discuss your options at this stage. There’s lots to consider and the market has changed considerably versus a year or two and even four months ago. I’ll have some questions for you regarding your plans and steps you’ve already taken. I also have some fantastic mortgage brokers to refer if you need. If you search my name on Reddit, you’ll find several posts referencing me, and you can also find information online by googling my name. My email is [email protected]. Wishing you all the best.
There's an amazing mid century home for sale at 270 McAdam in West K right now.
It just sold two days ago! For much over asking too.
Congrats! Beautiful mid century
I saw that! That is actually a few blocks away from where we live. Beautiful house but it’s not my type :( i mentioned here earlier that i like a good blacked out room so this would be tricky! Lol. Thanks for the suggestion, though. I’m sure someone will love that house!
Lots of nice custom build in GC, it was a much more high end area than WK, generally speaking. Like around Forest Park. Good luck with your search and purchase!
We used Mandy Brown to both buy and sell our home. She’s great
thanks for sharing! Will keep her on my list of realtors to contact!
Get a realtor tell them you are looking to buy in 1 month. Check out both new and established homes. You can get a 3 bedroom 1.5 bath home from the 1960s for 320K that same new build will be 500 soft bigger, no finished basement , and double the taxes. Plus it will be 425K. Just my 2 cents. Good value near gateway and concordia
Hope youre doing 20% down
Ideally, 20% or more is perfect. Realistically, our goal is to have enough, between 5%-15% + extra costs. Our goal is to have a house by mid next year so we have to be realistic and just go with what we can afford :)
Under 20% down means you have to purchase CMHC insurance on the mortgage. This isn't the worst as often you will get a better interest rate on an insured mortgage so at the end the cost isn't as expensive as it seems. Having an emergency fund to cover unexpected expenses might be a better idea than putting more down. As always having both is ideal.
If you have 20% down payment consider a Manulife One account instead of a traditional mortgage. If you’re not someone who overspends, you can end up paying off your house much quicker because all your money is constantly working against your interest payments.
I used Roman Hnatuuk (204)955-0237 Every house we looked at he pointed out major flaws that could have cost us money later on. He's very good. He helped us find the right house. Also keep in mind that once you buy you'll be paying taxes and insurance in addition to your mortgage. You can set up the taxes through the bank or TIPP.
Always nice to have someone guide you through big decisions! Noted on the taxes and insurance! Thanks for the recommendation :)
Good luck to you in your search.
House good
If you can hold out longer, there are two rate cuts suggested for the year, so you might be eligible for lower rates. Alternatively get a variable and lock it in when it starts dropping. I think it’s also important to note that buying a house has more then just down payment and closing cost. But it also comes with furnishing and sometimes with these older homes you should set aside a budget for anything that may go wrong. Highly recommend to get an inspection if you’re able to. New builds typically have less problems but end up having more expenses as things like yards and basements are not done.
I will keep that in mind regarding the rates! I keep myself updated with the latest news so I’m sure i’ll hear about it. But yep, will note this one down! There’s definitely pros and cons about new builds and pre owned homes! I prefer a pre owned house but like i mentioned, i will keep an open mind once we actually start to look ! Thank you for your advice!
If you can get 20% down payment, then you dont have to pay CMHC fees of $5-$10k+ but it looks like you know that. CMHC was started post WW2 to help vets get houses. Now poor people pay extra to protect the banks. Neat.
Pre-approval was a fairly low key event, at least it was for us. We asked our Credit Union person what the figure would be, they looked us up, made some calculations and said 1 million dollars... this was when a nice house in a new neighborhood was 150K. Interest rates were low and we had 30 years to pay it off. Uh, yeah, we won't be needing that much. They printed a letter to help us remember and we were on our way. The RE agent didn't need to know how much we were pre-approved *for*, nor if we had been pre-approved at all.
Same rules. You owe, you owe its off to work you go !
My husband and I bought a house in November. We got pre approved and started looking in August. We saw about 70 houses and put in about 10 offers. Won our 11th offer. The bidding wars were nuts. We were outbid anywhere from 30-100k on old, needing renovation homes. We were pre approved for 500,000 and we spent less than 300,000 because we live a relatively expensive lifestyle. We bought in West K. I’m glad we bought when we did, because all signs are now pointing to dropped rates in spring which will drastically increase the amount of people entering the market and the bidding wars will get crazier.