Archives des purchase of a property - Courtier Immobilier Montréal Yanick E Sarrazin https://yanicksarrazin.com/en/immobilier/tag/purchase-of-a-property/ Plateau Mont-Royal, Outremont, Rosemont La-Petite-Patrie, Mile-End, Ville Marie Tue, 13 Aug 2024 13:26:15 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.5 https://yanicksarrazin.com/wp-content/uploads/2020/11/77174542_2673133149440852_8670214071997431808_n-60x60.png Archives des purchase of a property - Courtier Immobilier Montréal Yanick E Sarrazin https://yanicksarrazin.com/en/immobilier/tag/purchase-of-a-property/ 32 32 How to get a mortgage pre-approval? https://yanicksarrazin.com/en/immobilier/buyer-information/how-to-get-a-mortgage-pre-approval/ Wed, 15 May 2024 13:47:31 +0000 https://yanicksarrazin.com/?p=58990 How to get a mortage pre-approval? – Key Information Buying a property is often one of the most significant financial decisions in one’s life. For many, this involves taking out a mortgage. But even before you start browsing real estate listings on Centris, it’s wise to consider a crucial aspect: mortgage pre-approval. This preliminary step […]

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How to get a mortage pre-approval? - Key Information

Buying a property is often one of the most significant financial decisions in one’s life. For many, this involves taking out a mortgage. But even before you start browsing real estate listings on Centris, it’s wise to consider a crucial aspect: mortgage pre-approval. This preliminary step is much more than just an administrative formality; it can make all the difference when presenting an Offer to Purchase.

In this article, our real estate brokers explain in detail what mortgage pre-approval is, why it’s essential, and how it can set you on the path to a successful property purchase.

What is Mortgage Pre-Approval?

Mortgage pre-approval, also known as pre-qualification, is an evaluation conducted by a mortgage lender to determine the amount they would be willing to lend you for purchasing a property. During this process, the lender will review your income, assets, debts, and credit score. This assessment helps determine your borrowing capacity and the maximum amount you can spend on purchasing a property.

How Can I Get Mortgage Pre-Approval?

Mortgage pre-approval can be obtained from lenders or mortgage brokers. Lenders include banks, credit unions, insurance companies, and loan companies. In most cases, banks act as lenders. Among these, you can find National Bank, BMO (Bank of Montreal), Desjardins, RBC Royal Bank, and others. These institutions lend you money directly and offer interest rates.

On the other hand, mortgage brokers have access to numerous lenders. They assist you in navigating the mortgage application process by advising you on the various types of loans available, comparing offers from multiple lenders, and helping you choose the one that best suits your financial situation.

If you desire a mortgage pre-approval, we can connect you with experienced mortgage brokers who can guide you through the process and help you find the best options based on your needs and financial situation.

Contact a real estate broker

What Information Should I Request When Obtaining Mortgage Pre-Approval?

It’s important to ask the right questions to your mortgage broker. For example, these questions could be: What is the validity period of the pre-approved rate? If interest rates decrease during the pre-approval period, will you automatically benefit from the lowest rate? Is it possible to extend the mortgage pre-approval if needed?

If you have other questions or points that seem unclear, don’t hesitate to discuss them with your mortgage broker. They are there to help you and address all your concerns

What Documents Are Required?

Documents obligatoires à fournir - Courtiers immobiliers Montréal

When applying for mortgage pre-approval, a lender or mortgage broker will review your income, debt-to-income ratio, and assets.

The documents required include:

-Confirmation of identity

-Confirmation of employment

-Confirmation of ability to finance the down payment and closing costs

-Information about your financial commitments or debts

-Details about other assets you own, such as a vehicle, secondary residence, or boat

Regarding confirmation of employment, your mortgage broker might ask for:

-Confirmation of your current income or pay rate

-Your current job title and how long you’ve held that position with your employer

-Notices of Assessment from the Canada Revenue Agency for the last two years if you are self-employed

To determine if you have the necessary down payment for your property purchase, your mortgage broker might request recent bank statements and investment statements.

For financial commitments or debts, you may need to provide your monthly payments for:

-Credit cards

-Support payments for spouses or children

-Car loans

-Lines of credit

-Any other debts

What Should I Do If My Mortgage Application Is Declined?

A lender may reject your mortgage loan application even if you’ve received pre-approval. Before approving the loan, the lender assesses whether the property you want to purchase meets certain standards, which vary from one lender to another. Each lender has its own criteria and lending policies. Adverse credit history can lead to loan rejection, among other reasons. If your application is rejected, discuss with your lender other possible options, such as a lower mortgage amount, a higher interest rate, a larger down payment, or the need for a co-signer.

Mortgage pre-approval is a crucial step in purchasing a property. It indicates the maximum amount you can borrow for a mortgage, but it doesn’t guarantee that you will actually obtain that amount. The approved amount will depend on the property value and your down payment. You may consider properties in a lower price range to avoid stretching your budget to the maximum. Remember that you will also need money for other expenses related to buying a property such as closing costs, moving expenses, notary fees, welcome tax, municipal taxes, etc. For more details on the expenses involved in buying a property, click here.

Read more buyer information

Sources:

Buying a property: what are the costs for buyers? 
https://yanicksarrazin.com/en/immobilier/buyer-information/buying-a-property-what-are-the-costs-for-buyers/

Mortgages: understanding them better for a real estate purchase
https://yanicksarrazin.com/en/immobilier/buyer-information/mortgages-understanding-them-better-for-a-real-estate-purchase-2/

The Promise to Purchase: understanding it better
https://yanicksarrazin.com/en/?p=24351

Our Montreal real estate brokers
https://yanicksarrazin.com/en/montreal-real-estate-broker/

Sellers and buyers: what are the costs to pay at the notary and the mandatory documents to provide?
https://yanicksarrazin.com/en/immobilier/seller-information/sellers-and-buyers-what-are-the-costs-to-pay-at-the-notary-and-the-mandatory-documents-to-provide/

National Bank
https://www.nbc.ca/

BMO
https://www.bmo.com/en-ca/main/personal/

Desjardins
https://www.desjardins.com/qc/en.html

RBC Royal Bank
https://www.rbcroyalbank.com/personal.html

How much do you need for a down payment?
https://yanicksarrazin.com/en/immobilier/real-estate-news/how-much-do-you-need-for-a-down-payment/

Buying a property: what are the costs for buyers? https://yanicksarrazin.com/en/immobilier/buyer-information/buying-a-property-what-are-the-costs-for-buyers/

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]]> Real estate: 3 reasons of buying a home in the summer https://yanicksarrazin.com/en/immobilier/buyer-information/real-estate-3-reasons-of-buying-a-home-in-the-summer/ Thu, 22 Jun 2023 14:19:05 +0000 https://yanicksarrazin.com/?p=42487 Real estate: 3 reasons of buying a home in the summer – Key information Whether it’s your first experience or a common practice, buying real estate is often an event that can lead to a lot of worries and uncertainties. Many questions can arise such as: what is the best season to buy? This recurring […]

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Real estate: 3 reasons of buying a home in the summer - Key information

Whether it’s your first experience or a common practice, buying real estate is often an event that can lead to a lot of worries and uncertainties. Many questions can arise such as: what is the best season to buy? This recurring question is difficult to answer because each season has its advantages and disadvantages.

Our real estate brokers in Montreal help you demystify the issue by presenting you the main advantages of buying a property during the summer season.

Montréal l'été - Immobilier Montréal

Summer is the low real estate season

A real estate myth is that summer is the high real estate season, but this is false. The real estate market is more active in the fall, as well as in the winter. The high season starts in mid-September and ends in June. As summer is short in Quebec, people prefer to take full advantage of it and start looking for properties towards the end of the summer season.

This then represents a notable advantage of looking for a property during the summer, because if there are fewer potential buyers on the market, then better will be your chance to acquire the desired property at a better price. In fact, there would be less competition between buyers and opportunities for outbidding. You will have more choice in the inventory of available properties.

Inspection is facilitated

You found the property of your dreams. Accompanied by your real estate broker, you made an offer on the property and it was accepted. In the promise to purchase, the purchase of the property is conditional on an inspection. It’s the inspection clause that says the buyer must have the building inspected. During this inspection with a building inspector, your real estate broker can detect worrisome elements on the property or highlight major issues that were not listed on the seller’s declaration form. The pre-purchase inspection allows you to protect yourself as a buyer before making the big leap in buying your property.

Between the different seasons, summer remains the period that buyers prefer to inspect a property. With warmer temperatures and increased visibility: the advantages are numerous.

Additional visibility

Whether for a house, an income building or even a condo, the exterior structure of the property is an important parameter to consider when inspecting. A major benefit of summer is that there are fewer things that can affect visibility, such as snow or ice in winter. Accessibility is also limited. In winter, it can be difficult or impossible to access balconies, terraces and the roof. The inspection of the roof, as well as of the ground are then greatly facilitated in summer.

Better accessibility

During a summer inspection, the inspector then has a better accessibility outside the property and can then examine it accurately. For example, by earthworks, the building inspector will assess the risk of water damage. The flow of water can be checked by the slopes of the land. 

Any associated structure, such as a pool, must also be inspected for stability. This accessibility is promoted in the summer.

Access to foundations

The foundation review is an important step in the inspection as a foundation represents the foundation of the building. Due to the better visibility of the building’s construction in the summer, it is also easier to access its foundations and evaluate their resistance.

Déménagement - Immobilier - Courtiers immobiliers Montréal

The move goes smoothly

A considerable advantage of buying in summer is to move in ideal climatic conditions. In winter, the move can be accompanied by snow storms, ice storms and heavy ice falls. It is then necessary to use waterproof protections to protect objects. In summer, warmer temperatures can help move with greater ease and cause less nervousness. The days are longer and allow to make the move without worries before nightfall. 

Summer often rhymes with long school holidays. The move in summer also allows families with school-aged children to change neighborhoods without disrupting their school year. If the children change schools, they will have the summer to familiarize themselves with their new neighborhood and meet new friends.

Moving in the summer also means taking advantage of the summer holidays to rest once the property is installed, for the happiness of the children, but also that of the parents.

As observed above, the advantages of buying a property in summer are numerous. The low real estate season will allow you to put all the chances on your side in order to distinguish yourself from the competition and acquire the dream property. Once the property is found and the offer to purchase is made, the summer inspection with your real estate broker and the building inspector will be facilitated. Finally, the move during the summer period will be all the more pleasant with the bad winter weather conditions.

Do you want to purchase a property? Contact one of our real estate brokers.

Read more real estate information

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]]> Should you sell before buying or buy before selling? https://yanicksarrazin.com/en/immobilier/real-estate-information/do-you-have-to-sell-before-buying-or-buy-before-selling/ Mon, 16 Jan 2023 20:07:09 +0000 https://yanicksarrazin.com/?p=36421 Selling before buying or buying before selling? – Key Information Should I sell my property before buying one or buy before selling my current property? Many people ask this question because of uncertainties in the process of selling and purchasing real estate. Our real estate brokers, experts in Montreal neighbourhoods, believe that selling before buying […]

L’article Should you sell before buying or buy before selling? est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

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Selling before buying or buying before selling? - Key Information

Should I sell my property before buying one or buy before selling my current property? Many people ask this question because of uncertainties in the process of selling and purchasing real estate.

Our real estate brokers, experts in Montreal neighbourhoods, believe that selling before buying is the best option.  That said, each case is different and we will try to give you a picture of the advantages and disadvantages of the two scenarios in order to help you.

Buying before selling

Fear of the unknown leads some individuals to opt for this sequence when they are looking for a new property. It is more precisely the fear of not finding the property that meets the criteria of purchase after receiving an interesting offer on their real estate that is at the heart of their concerns. That said, buying before the sale can be an attractive option in the case of a cash purchase.

Advantage of buying before selling

• More time: Aside from your personal constraints, you have all the time you need to do your real estate searches.

Disadvantages of buying before selling

•  A purchase offer conditional on the sale: In the case where the buyer must sell to recover the proceeds of the sale in order to finance a new purchase of a property, when he finds the desired property, the latter must submit a purchase offer conditional on the sale of his property. Otherwise, there is a significant financial risk or a much higher purchase cost. Until you have an unconditional offer to purchase your property, there will be uncertainty about your purchasing power, including how much you can spend on your down payment.

• Additional costs incurred by a bridge loan: If you need the proceeds from the sale of your property for your purchase, your bank or lender can offer you the option of a bridge loan to acquire the desired property. However, it will cost several thousand dollars to cover the administrative costs, as well as the interest costs associated with granting the loan.

• A less competitive and more stressful offer to purchase: Writing an offer to purchase that includes the condition of sale makes your promise to purchase less attractive to the seller. In addition, once your offer to purchase is accepted, it will include a 72-hour clause. Thus, as long as the terms of your sale are not fulfilled, the 72-hour clause indicates that the seller can find another buyer. In general, the buyer’s deadline for fulfilment of the conditions is 30 to 90 days. This number may vary depending on the agreement between the seller and the buyer. If the seller receives an even more attractive offer from another buyer and the conditions are lifted before yours, the seller will have 72 hours to send you a notice, being the first buyer. You should then lift all your conditions, including the sale of your property and provide proof of the financing of the purchase. In short, the addition of this condition can raise many concerns and lead you to make concessions that you would not normally make.

• The risk of not selling: An additional disadvantage to buying before selling your property is not being able to sell your property once your buying process has begun. For example, you accepted an offer to purchase your property and during the inspection a problem affecting the building was discovered. Whether this problem is real or imagined, major or insignificant, the buyer can cancel his offer which will have catastrophic consequences on your own buying process, not to mention the loss of value of your property.

Chien qui déménage -courtiers immobiliers Montréal

Selling before buying

This sequence remains the most financially secure option as it involves selling your property and using the proceeds of the sale to acquire a new property.

Advantages of selling before buying

• A reduction in financial risks: In most cases, the sale of a property helps finance the purchase of a new property. Selling your property allows you to recover the value of the property and then have a better knowledge of the actual budget allocated to the future purchase including the amount of your down payment. So it’s a safer option. In addition, the expenses are only related to one property, one mortgage, and you will not have the additional costs of a bridge loan.

• Better negotiating power: When you sell before you buy, you will have fewer constraints since you have no commitment to buy real estate. In this sense, since you will not feel a sense of urgency, you will have less pressure to sell and will therefore be less inclined to accept an offer that does not meet your expectations, which will result in a higher sales price. You’ll have more bargaining power.

• A more competitive offer to purchase: As mentioned, with the sale price of your property, you have a better idea of the amount you will pay on the new property. You will not have to submit an offer conditional on the sale of your property. You can then make offers to purchase with only the basic conditions (inspection, financing and document review).

Disadvantage of selling before buying

• The impossibility of finding the desired property: The main drawback of the pre-purchase sale that worries some homeowners is not being able to find a property that fits their needs once their current home is sold. This could result in a temporary rental while finding the ideal property. That said, with the assistance of an expert real estate broker in your neighbourhoods for the sale of a property and the purchase of a new one, this scenario can be avoided.

Any hesitation?

Selling and/or buying your property is an important event that can generate considerable stress and where constraints and uncertainties can occur. In order to simplify this process, to obtain better purchasing power and especially to reduce financial risks, it is generally recommended to sell your property before buying a new one.

In addition, in our opinion, the key to success is to accept an offer to purchase in which the deadline for signing the act of sale is more than 90 days, while being accompanied by a real estate broker who has a great deal of expertise in the acquisition of real estate.

Still hesitating about the right decision? Contact one of our real estate brokers who will enlighten you on the subject and according to your needs.

Summary

There are many questions about whether it is better to sell your property before buying a new one or whether it is better to buy before selling. According to our team of experts, it is always preferable to sell your property before making a new acquisition of real estate. The benefits are many: you reduce financial risks, you will have more time to make an informed decision about the sale and purchase of a new property. When you make an offer to purchase, you will have fewer conditions, which can then attract more sellers. Selling before purchasing a new property helps alleviate worries about this important event of a lifetime. As for the purchase before the sale, this option is interesting only in the case of a cash purchase. If you have additional questions, do not hesitate to contact a YE/SARRAZIN real estate broker !

Questions about selling before buying or buying before selling? Contact one of our real estate brokers to find out more

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