Suzanne M. O'Toole - Sales Representative - Real Estate
Suzanne M. O'Toole - London Ontario Real Estate- Sutton Group - Select Realty Inc., Brokerage
Purchasing advice

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Buying with Suzanne M. O'Toole

Whether you are looking for a comfortable place to retire or a beautiful spot for recreation, London, Ontario is an ideal place to call home. I am dedicated to helping you find the best home, investment property, or condo that fits your needs. I am a caring professional and I am driven by your best interest, I will go out of my way to show you every home or property that may be of interest to you. You’ll surely find that there are a variety of attractive properties in the London area that suit your family’s needs. Just click here to take a look at our beautiful home, or investment listings:
http://www.suzanneotoole.com/buyingaproperty/propertiesforsalenow.html

If you’re new to the London area, the area supports plenty of facilities and activities that will help make London “Home” for you and your family. The area abounds with educational facilities, fine dining, shopping and recreational facilities.

Part of our service is to provide those who are new to London with a familiarization tour and lists of a number of the great features of the area. I have been working with families since 1980 to find the very best homes to suit their needs.

Call me for First Class Service. 519- 433-4331

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What Can You Afford

 There are a number of steps to getting mortgage financing. A particularly important step and one many people don't give much thought to - is the credit check. As a routine part of the application process the lender will order a copy of your credit history.

Learn here about getting and understanding your credit report from credit reporting agencies by
the Financial Consumer Agency of Canada.

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Personal Credit History:

Your personal credit history is compiled by credit reporting agencies which collect information from various sources including banks, retailers and other public records, creating a credit report. Information such as: what credit and debit cards you have, the types of accounts you have at various financial institutions, information about personal loans, mortgages, student loans, etc., is all part of the report. The report shows the creditors' names, account numbers, the date accounts were started, the current balance as well as a detailed payment history (for example: how many times you were over 30, 60, or 90 days late in paying bills). Generally, credit reports show information going back six to seven years. The report will also show public information, for example, marriages, divorces, liens, judgments that have been entered against you, bankruptcies, etc.

The credit reporting agency does not rate you - it merely provides information on your credit history. The lender will examine the credit report to aid in determining whether to lend you money. If the lender has any concerns about something on the report the lender may ask you for an explanation. Though lenders usually work as quickly as possible in processing mortgage applications - the process can be slowed down if the lender needs to go back to the applicant for an explanation concerning items on a credit history. So, don't worry, but be prepared to answer questions the lender may have - often a simple explanation will do.

The lender will also use the report to verify other information on your mortgage application, for example: information about your employment status, your address (including the name of your landlord and perhaps rental payment history), etc. The credit report will also indicate inquiries made by other creditors over the period of the report. This information might be useful to a lender to show what other avenues of financing you might have tried and it may raise questions about why another potential creditor declined to lend it to you.

Purchasing a home involves one-time costs and monthly expenses. The largest one-time cost is the initial investment or down payment and it usually represents between 5% to 25% of the total price of the property.
In addition to the actual purchase price, there are a number of other expenses that you might be expected to pay for. These are listed below:

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Lenders:

The credit reporting agenciy does not rate you - it merely provides information on your credit history. The lender will examine the credit report to aid in determining whether to lend you money. If the lender has any concerns about something on the report the lender may ask you for an explanation. Though lenders usually work as quickly as possible in processing mortgage applications - the process can be slowed down if the lender needs to go back to the applicant for an explanation concerning items on a credit history. So, don't worry, but be prepared to answer questions the lender may have - often a simple explanation will do.

The lender will also use the report to verify other information on your mortgage application, for example: information about your employment status, your address (including the name of your landlord and perhaps rental payment history), etc. The credit report will also indicate inquiries made by other creditors over the period of the report. This information might be useful to a lender to show what other avenues of financing you might have tried and it may raise questions about why another potential creditor declined to lend it to you.

Expenses:

Purchasing a home involves one-time costs and monthly expenses.The largest one-time cost is the down payment and it usually represents between 5% to 25% of the total price of the property.

In addition to the actual purchase price, there are a number of other expenses that you might be expected to pay for. These are listed below:

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Typical One-Time Expenses

EXPENSE PAID

Mortgage Application and Appraisal Fee

At time of application

Property Inspection (optional)

At inspection

Legal Fees

Closing

Legal Disbursements

Closing

Deed and/or mortgage registration

Closing

Property Survey (sometimes provided by seller)

Closing

Land Transfer Tax

Closing

Mortgage Interest Adjustment and Mortgage Take Over Fee
(if applicable)

Closing

Adjustments for Fuel, Taxes, etc.

Closing

Mortgage Insurance
(and application fee if applicable)

Closing

Home and Property Insurance

Closing and on-going

Connection charges for utilities
such as gas, water and electricity

Date of move

Moving Expenses

Date of move

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How to Make an Offer

When it comes time to make an offer,Suzanne M. O'Toole can provide current market information and will assist you in drafting your offer. She will communicate the offer, sometimes known as an Offer to Purchase* to the seller, or the seller's representative, on your behalf. Sometimes there may be more than one offer on a property coming in at the same time. Suzanne M. O'Toole will guide you through this process.

Offer to Purchase:
A legal document which specifies the terms and conditions of your offer to purchase the home.  In the province of Quebec, this is referred to as a "Promise to Purchase". The offer can be firm or conditional.

Firm Offer to Purchase:
Usually preferable to the seller, because it means that you are prepared to purchase the home without any conditions. If the offer is accepted, the home is yours.

Conditional Offer to Purchase:
Means that you have placed one or more conditions on the purchase, such as "subject to home inspection", "subject to financing" or "subject to sale of buyer's existing home". The home is not sold until all the conditions have been met.

Acceptance of the Offer:
Your Offer to Purchase will be presented as soon as possible. The seller may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, the closing date, or any number of variables. The offers can go back and forth until both parties have agreed or one of you ends the negotiations.

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Have a Home Inspection

Buying a home is one of the most important investment decisions you will make in your lifetime. As such, it makes sound financial sense to enlist the services of a qualified home inspection company to ensure your home is as solid and secure on the inside as it is on the outside.

A home inspection will determine the structural and mechanical soundness of your home. Your home inspector will identify existing and potential problem areas, suggest practical low-cost solutions, and provide estimates regarding costs for any work required. Shortly after the inspection has taken place, a report summarizing the findings is generally provided to the potential purchaser.

By commissioning a home inspection prior to purchase, you're protecting both yourself and your investment, as well as buying a little peace-of-mind.

Home inspection costs often range according to size, age, and location of the home. Your Royal LePage sales representative can recommend a reputable home inspection service or arrange for a home inspector to visit your property.

Recommended Home Inspector

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Lawyer's Role and Fees

Security & peace of mind are key in hiring a real estate lawyer: Buying or selling a home and moving are very busy and stressful times for most people. We understand that and make every effort to give you peace of mind until the deal is done and you get your keys on closing.

Legal fees: You will need a lawyer to complete the purchase of your home. Legal fees vary from lawyer to lawyer but on average it is safe to allow $650 - $800 for legal fees and another $300- $400 for disbursements such as registering the deed etc. The legal fees for a purchase of a $100,000 home would be about $650 for the lawyer and $350 for disbursements for a total of $1000.

Land Transfer Tax: The Province of Ontario charges a fee to transfer the title to the property into your name. In Ontario, this fee is calculated based on the sale price of the property.
The tax rate is calculated as follows:.

  • 0.5% of the value of consideration for the transfer up to and including $55,000,
  • 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
  • 1.5% of the value of the consideration which exceeds $250,000, and
  • 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.

Mortgage application fees: In most instances, there are no mortgage arranging fees payable upon application for a mortgage. We have mortgage specialists with whom we work who have in excess of 40 sources of mortgage funding.

Title Insurance: While Title Insurance is optional, I strongly advise discussing the benefits of Title Insurance with your lawyer.

Recommended Lawyer

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Closing Your Transaction

After the agreement of purchase and sale has been agreed to by both the buyer and seller, the buyer’s lawyer will have the title searched to make certain that there are no charges against the title that cannot be cleared at closing. The lawyer will also order a number of certificates including a tax certificate to make certain that the property taxes have been paid. The buyer’s lawyer, in most instances, will also prepare the mortgage documents as well as all other documentation necessary to close the transaction. Your lawyer will be your advocate during the closing process. Your lawyer will make arrangements with you to come to his/her office to sign documents as well as bring in your funds (down payment) to close the transaction so that you may receive the keys and move into your new home.

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Suzanne M. O'Toole - Sales Representative - Sutton Group - Select Realty Inc., Brokerage*
tel: (519) 433-4331   fax: (519) 433-6894
info@suzanneotoole.com

* Each Office Independently Owned and Operated
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