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Dimitri Mitouchev416-471-3464; 416-391-3232

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Dimitri Mitouchev

Home buyer's guide

Getting Started: Your home is the single most important purchase that you will make. It will affect your family, your finances, and your lifestyle. Whether this is your first purchase or you’re an experienced buyer, this decision must be made carefully.

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Are You Ready to Buy?

Property ownership is an excellent investment whether you’re looking for your dream home, a rental property, or to expand your investment portfolio. Owning real estate is one of the least risky ways to build equity or to obtain a greater return on your initial investment — as long as you’re financially ready
The Canadian Mortgage & Housing Corporation (CMHC) recommends some things that you should consider when deciding to buy:

Financial Security: Your home can provide you with financial security due to capital appreciation — as the value of your home increases over time, so does your equity.

Stability: Having a place you can call your own.

Financial Stress: Added financial responsibilities such as: coming up with the down payment, making regular mortgage payments and ongoing costs associated with home ownership can tie up a lot of you cash and put stress on your finances.

Maintenance: Keeping your home in good shape requires time and money.

Responsibility: You alone are responsible for payments, repairs, and maintenance.

Flexibility: You can decorate or renovate your home to meet your family’s needs and personal tastes.

Deciding to buy.

Why Do You Want To Buy?

Are you tired of paying rent? Have you decided to pay your own mortgage and not your landlord’s? Have you outgrown your current home? Are you looking for an investment portfolio? Are you looking for a rental property? Would you like a larger yard? Would you rather live in a different area? Do you want to shorten your commute? Having a clear sense of your reasons for buying will help you choose the right property.

Has Your Income Grown?

Property ownership is an excellent investment; whether you are looking for your dream home, a rental property, or to expand your investment portfolio. Owning real estate is one of the least risky ways to build equity or to obtain a greater return on your initial investment.


Get a Financial Overview

There is a financial exercise you can do to see where you stand:

Determine your current monthly Expenses.

Determine your current monthly debt payments.

Calculate your Net Worth – The amount left over after subtracting your total liabilities from your total assets.

How Much Can You Afford?

There are two general affordability rules that will help you figure out what you can afford on a monthly basis in your current financial situation:

Your monthly housing costs shouldn’t be more than 32% of your gross household monthly income. Monthly housing costs include: mortgage principal and interest, taxes and heating expenses.

Known as your Gross Debt Service (GDS) ratio.

Your entire monthly debt load shouldn’t be more than 40% of your gross monthly income. This includes: housing costs and other debts such as car loans and credit payments.

Known as your Total Debt Service (TDS) ratio.

These numbers help you to determine your overall financial health. They’re also part of what your lender will consider when determining how much you can be approved for.

Check Your Credit Rating.Your credit score will have a huge impact on what type of property you can buy, and at what price. It is first recommended to check your credit rating either on your own or with an experienced lending institution so that you can determine what you can afford. The lender will research your credit ratings from the two credit reporting agencies Equifax and Trans Union or you can go to them directly online. I will be happy to recommend experienced, knowledgeable lenders in the residential, construction, and commercial and investment real estate fields.

Get a Mortgage Pre-Approval.

Having a pre-approved mortgage amount makes the search for your new home much easier and less time consuming because you have a good price range in mind. There a few pieces of information you will need to have handy the first time you meet with a lender:

Your personal information including identification such as your drivers license.
Details on your job, including confirmation of salary in the form of a letter from your employer.
Your sources of income.

Information and details on all bank accounts, loans and other debts.

Proof of financial assets.

Source and amount of down payment and deposit.

Proof of source of funds for the closing costs.

Choosing a realtor

What To Look For In A REALTOR®

The following are some factors to keep in mind when looking for a Buyer’s Agent:
How can they help you?: Buying home is a complex and complicated process that is constantly changing. You want to make sure that you’re working with someone who can take this burden off of your shoulders and get you the results that you’re looking for. One of the most important factors in choosing a real estate professional is their willingness to continually educate themselves about the ever-changing real estate industry.

Experience and Expertise: You want a full-time REALTOR® who is familiar with the area you’re looking in and with the type of property you intend to buy.

Availability and Commitment: Your agent should be capable of prompt and decisive action during your home search. He should be able to keep in touch with you via phone, email, text message, etc and should be readily available in case of emergencies or even for the simplest questions. I communicate with my clients through text, email, over the phone and in person. I will communicate with you in whichever way you are most comfortable!

Rapport: You want an agent to take the time to listen to your goals and clarify your needs. I believe that the buying process should be exciting, comfortable, informative and stress-free.

Once you have picked out the property you want to purchase, your real estate agent can help you make an offer that the seller will accept. A good agent will investigate the potential costs and expenses associated with the new property.

An agent can also help you draft your offer in a way that gives you the advantage over another offer.
When you come across the home or property that’s right for you then the next step is to put in an offer. At this point your REALTOR® will discuss with you the best way to do this based on your situation and what fair market value for the home you’d like to buy is.

Typically offers will go back and forth a few times between the buyers and the sellers as you try to agree on price and terms. When an offer goes back and forth like this it is referred to as being in ‘signback’. Any changes from the original offer will be documented in writing, although in extenuating circumstances negotiations will continue verbally until they can be documented in writing. This is where your REALTORS® negotiation skills and experience really go to work for you!

The Deposit

The deposit is usually delivered to the listing brokerage upon acceptance of the offer. The deposit will be held in trust until closing and then applied to your purchase price. For example if the purchase price is $510,000 and the deposit is $20,000 then $490,000 will be owed at closing.

The Conditional Period

Once your offer is accepted the conditional period begins. All of the conditions in your offer must be met before it can become firm and the deal finalized. Most offers contain the following conditions:

Finance–Mortgage approval for the purchase will need to be obtained to meet this condition. I would be happy to recommend an experienced mortgage specialist.

Appraisals – Sometimes mortgage providers will order an appraisal on the home to make sure that the home is worth what they are lending you to purchase it. If an appraisal is required it will be scheduled by your mortgage provider.

Inspection – A professional home inspector will thoroughly check the home and let you know if there is anything you should be concerned about. I can recommend an experienced home inspector for you.

Insurance – If you are obtaining a mortgage, you will be required by your lender to purchase insurance on the property. You may be able to save money on homeowners insurance by shopping around for insurance.
And sometimes:

Sale of Purchasers Property or SPP – If you are purchasing a property and still need to sell your current property you might make this condition part of your offer. Your agent will guide you on whether to include this condition in your offer or not.

When all of the conditions have been met and the appropriate paperwork is signed and submitted the offer is considered firm.

A Firm Offer
Now that all of the conditions have been met your offer is firm, congratulations you just bought a new home! All that’s left to do is to get ready to move in on closing day.

Packing & Moving

Once the offer is firm and both parties have signed off on it, it’s a good idea to start looking at movers. I have several moving companies our clients have dealt with and can recommend names to you.
If you deside to pack and move yourself then it’s a great time to start collecting boxes and get to packing!

Changing Your Address

You should also start contacting utility companies and government bodies to let them know about your new address. Once your offer becomes firm I will send you a closing package which includes a checklist of everywhere you should call to change your address.

Home Services & Utilities

I will also provide you a list of useful numbers for the activation of home services and utilities in your new home.

Be Prepared

I am ready to assist you should an unforeseen glitch pop up, even at this last stage. Something at the property breaks down, or some other minor detail – no need to worry.I have encountered these problems before so we know how to handle them efficiently and in a stress-free manor.

Closing Day – What to Expect

The biggest misconception when it comes to closing is that come closing the new owners get the keys right away and can start moving in, although this would be ideal it’s simply not the way things work.

In order for the keys to be passed from the seller to the buyer you have to wait for the title to be transferred. The title transfer is handled by your lawyer, who is a buyer’s biggest ally come closing day. Your lawyer will notify you after the title has transferred and it’s time to pick up the keys. This generally happens between 1:00 and 5:00 PM.

If possible I recommend scheduling movers in the afternoon or the day after closing – this way you avoid paying movers to sit around while you`re waiting for the keys.

Once you do get possession of your new home it’s a good idea to do a quick check of the house to make sure everything is as you agreed i.e. appliances are in good working order, if something isn’t right contact your lawyer right away.

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E-mail: dimi@homeresales.net
Phone: 416 391-3232
Direct: 416 471-3464
Fax: 416 391-3237
Address: 895 Don Mills Road Str. 112, Toronto, ON, M3C 1W3
Office hours: 9 a.m. – 8 p.m.

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