Purchasing a home means relying on a range of professionals to guide you through the process. For first time home buyers in particular, it helps to be acquainted with these specialists and their roles. The following is a list of people you can expect to connect with:
Mortgage Broker – a mortgage expert who introduces buyers to a full range of mortgage products, interest rate options, and strategies to pay off a mortgage more quickly. This professional works to help you sort through an array of financing options to find one that is suited to your needs, and will be your contact person with the lender.
Lender – financial institutions, such as banks, credit unions, trust companies, pension funds, and life insurance companies, which lend money to home buyers either directly or through a mortgage broker. Many lenders who offer mortgage financing through a mortgage broker do not lend directly, so the mortgage broker can provide access to a wider array of products than you could access yourself.
Realtor – a real estate representative who will work with you to find a property in your price range that is suited to your needs – size, style, features, location, accessibility to schools, transportation, shopping and other personal preferences. They are familiar with current real estate values, taxes, utility costs, municipal services and facilities. A real estate professional will facilitate negotiation of a win-win agreement that will satisfy both you and the seller and who arranges the purchase transaction on your behalf.
Appraiser – if your lender requires an appraisal report, this property specialist will determine the property’s market value, based on its condition and the selling price of comparable properties recently sold in the area. The market value enables the lender to determine the loan to value ratio of the mortgage (the amount of the mortgage versus the value of the home).
Property Inspector – examines the home you intend to buy to evaluate its roof and structural stability, electrical work, plumbing, appliances, fireplaces and furnace. This inspection is usually arranged by the buyer, and allows him or her to address any issues with the seller prior to closing, as well as anticipate any repairs that may be required.
Lawyer / Notary Public – your lawyer or notary will review the Agreement of Purchase and Sale, ensure that all closing documents have been completed correctly (including the title search and title insurance), as well as file documents with the provincial land title office. Your lawyer or notary will also ensure your property is clear of all existing mortgages, judgments and builder's liens.
Default Mortgage Insurer – mortgage insurers protect lenders from a borrower defaulting on a mortgage at any time during the amortization period. Home buyers with down payments of less than 20% generally must purchase mortgage insurance from the Canada Mortgage and Housing Corporation (CMHC), Genworth Financial, or AIG/United Guarantee – this insurance is arranged by the lender.
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