Congratulations! You are on Step 1 of the buying process. First, you must be ready to take on the responsibility of owning a home. Ideally, you should have some money saved up for a down payment and have an idea on your price range. The first step is deciding where you would like to live and what style of home works for you, along with figuring out other specific needs or wants you’d like.

Buy or sell your current home first?

Often, people are able to perfectly time their sale and purchase so they happen on the same closing date, although this isn’t always the case. If you are selling, you can try to extend the closing period to give yourself more time to find your new home. We can help negotiate timing requirements and develop a solution to resolve issues.

Should you wait for the market to improve?

If you are selling and buying, you don’t have to worry about playing with the market. If you sell your home at a lower price, chances are you will be buying at a lower price as well. If you are upgrading to a larger home, this works out to your benefit.

Above Market Value: Price above market value, and you will only sell your competition

Below Market Value: Price too low below market value, and you may start a bidding war

Buyers’ and Sellers’ Explanation on the Market

At times, there is a “Sellers’ Market”, which implies there are many buyers looking, but there are fewer homes on the market. Other times there is a “Buyers’ Market”, which implies there are many homes on the market, giving buyers more variety to choose from.

Knowing your budget is a very important part of the process, as buying your home will probably be the most important purchase you make in your life. The cost of buying a home includes down payment, inspection fees (if chosen), taxes, and legal fees. The monthly cost of buying a home includes a mortgage, maintenance bills, insurance, property taxes, utilities costs, and community or condo fees.

How much should you put into a down payment?

It is most beneficial to have a small mortgage, meaning you should make as big a down payment as possible. Keep in mind, some money may need to be put aside for renovations, moving, repairs, or possibly, new furniture.

Who can help you get a mortgage?

There are many options of banks and other lenders who would love your business. Talk to your banker, mortgage broker, and John Mattiello for mortgage advice. One option is a traditional bank; this would work well, especially if you already have a good relationship at your bank. A second option is a mortgage broker, a person who specializes in working with many banks to provide you with the best options and rate. A third option is refinancing, making your options endless; this could be a preferred alternative if the seller is locked into a lower interest rate than you can get right now.

Why get pre-approved?

Getting pre-approved is beneficial for reducing the amount of stress you may have because you don’t know what you are able to afford. It also saves time by reducing the number of properties you consider, knowing you aren’t able to go beyond your limit.

The steps to getting your pre-approval

Talk to your current mortgage broker or financial institution
Complete, then submit your application
Gather necessary documents
Verify all your details
Obtain a copy of your mortgage approval certificate

What you need to provide to your lender:

Personal data
Employer details/salary verification
Banking info
Current/past debts
Verification of down payment
Credit investigation check
List of all assets

Financing Options

The Canada Mortgage and Housing Corporation (CMHC) provides mortgage loan insurance to help lenders offer mortgages at the lowest possible rates, allowing borrowers to obtain home ownership with as little as 5% down or home owners renovate or refinance a property.

CMHC ensures you receive a steady supply of low-cost funds for residential mortgages by guaranteeing timely payment on a range of mortgage-based securities.

CMHC is Canada’s leading mortgage loan insurance provider and is an affordable financing route, aiding Canadians all over the country.

Mortgage Checklist

Letter of employment confirmation
List of assets
List of liabilities
Social Insurance Number
Chequing account number
Your lawyer’s contact information
Information about the house you want to buy

Mortgage Loan Approval

A mortgage approval should only take a few days, but it’s probably best to allow up to two weeks. During this process, the lender will do a credit check and will spot check other information you have provided. In addition, an appraisal of the value of your home may be obtained. Whether the lender approves your loan application will be determined by an evaluation of the following:

Capacity: Do you have enough income to repay the debt?

Credit history: Do you pay your bills on time and do you live within your means?

Capital: What are your current assets?

Collateral: What assets can you pledge as security against the mortgage? If required, a request for mortgage loan insurance is submitted to CMHC, Genworth (GE), or a private insurer. The lender then approves or rejects your mortgage loan.

Two Helpful Lending Tips:

Gross Debt Service- housing costs should not exceed 32% of your gross income

Total Debt Service Ratio- This is a summary of all your debts. Your monthly housing costs and payments on all of your other debt (loans, credit cards, leases, etc.) should not exceed 40% of your gross family income. This equation will be different for everyone.

When choosing a Realtor, your candidate should have knowledge and experience and be successful in their real estate practice. There are over 4,500 Realtors in Edmonton, which makes it challenging to choose the one who will best represent you and enable you to reach your real estate goals. You can either have your own personal Realtor or go with the listing agent of the property. To help you consider the advantage of either choice, consider the following:

Working with a Listing Agent

A Listing Agent can:

Arrange property showings
Assist with obtaining financing
Explain forms and agreements thoroughly
Provide details on the property for consideration

Having your own Personal Realtor

A personal Realtor can:

Arrange property showings
Assist with obtaining financing
Explain forms and agreements thoroughly
Provide details on the property for consideration
Provide confidential assistance
Give advice on protecting your investment
Investigate potential issues regarding the property
Negotiate an offer in your best interest
Create a Buyer’s Contract in the email

John Mattiello wants to exceed your expectations by getting you the best home for the best price with the terms and conditions that work for you. The Buyer’s Home Profile is based on a series of questions John Mattiello will go over with you to make sure we have the most important information to work together to find you your new home.

Your Exclusive Calibration Search

By using the information gained through the Buyer’s Home Profile, and by discussing your wants, needs and budget, we will search for appropriate properties using specific criteria. Creating this precise and unique search will eliminate irrelevant searches and save both time and energy. Your unique search can send notifications with new listings or price changes, and all the listings generated will be e-mailed to you for consideration before choosing which properties to visit. We will do our very best to find the perfect home you’ve been dreaming of.

Be an Educated Home Buyer

Helping you understand the process of buying a home is important. We will provide information and answer questions. We will view homes and ask the listing agent/seller for additional details. We will help you:
Avoid overpaying for a property
Make the best decision for you
Know when a property is good value
Take advantage of the current market strengths and opportunities

Exclusive Market Data

We’ll also provide you with current market information on properties in the locations and price ranges you are searching, and referenced by other details such as home style and added features you have identified. This information will help you make the best choice.

You will work with many professionals through the process of buying a home. John Mattiello has established solid working relationships with other professionals to help sell your home.

Mortgage brokers, lawyers, property inspectors, interior designers, photographers/virtual recorders, website designers, administrative assistants, and graphic designers are all a part of the extended John Mattiello team.

John Mattiello understands that one person can’t do everything: his strong partnerships and associations with other knowledgeable, committed professionals ensures that all your home buying needs are seamlessly taken care of.

John Mattiello partners include:

Mortgage Specialist/Broker

You can work with your bank to obtain your mortgage, or with a mortgage broker. Independent mortgage brokers are licensed mortgage specialists who have access to multiple lenders and mortgage rates. They negotiate the lowest rate for you, and because they acquire high quantities of mortgage products, mortgage brokers can pass volume discounts on to you.

Home Inspector

Professional home inspectors inspect the home before purchase to ensure you are aware of all potential problems. They will identify areas in the home that may need replacement, require repairs or structural/other issues.

Home inspections typically take about three hours to complete. When completed, you will receive a written report that has reviewed all the home’s systems. This report is intended to provide you with the tools you need to make an informed decision about purchasing the property.

Lawyer

Here are some reasons why lawyers are essential to the process. They:

Ensure you are provided with all the information you require for the purchase of a home.
Ensure there are no issues with the title.
Ensure all the original owner’s property taxes, utilities, and/ or condo fees have been paid off.
Ensure you receive everything you paid for as outlined in the purchase contract.
Ensure the seller gets paid the correct purchase price.
Are capable of making binding promises to each other-to benefit you.
If you don’t already have a lawyer, talk to your friends and co-workers. We can also refer experienced real estate lawyers. Make sure you are acquainted with how the lawyer charges for fees and get an estimate of the other legal costs you can expect.

Interior Designer

Interior designers make interior spaces functional, safe, and beautiful by determining space requirements and selecting decorative items, such as colors, lighting, and materials. They read blueprints and are aware of building codes and inspection regulations, as well as universal accessibility standards.

Mover

A mover can manage the fine details during your move. We believe that the last thing you need on your mind during your move is worrying about managing the quality of your mover.

Trades People

When it comes to home-related services, I have a network of trusted tradespeople ready to assist you. From skilled contractors to reliable plumbers and electricians, I can recommend professionals who have a proven track record of delivering quality services.

Documentation

Once you have found a home you’d like to call your own, we will review what needs to happen before the Residential Purchase Contract is prepared.

• Exclusive Buyer Representation Agreement – an agreement to exclusively represent a Buyer
• Consumer Relationships Guide – identifies that the realtor is your representative for this transaction
• FINTRAC – a federal government requirement, an individual identification record

Buyer’s Contract

We will create a Residential Purchase Contract, which is a legal document requiring careful preparation. During this process, we will do a full background search of the property to make sure we have all the relevant information to prepare the best offer.

This Residential Purchase Contract includes all the details of the sale, including terms and conditions you wish to impose on the seller. John Mattiello will present and negotiate your offer with either the seller or the seller’s agent. There are multiple outcomes to be aware of after an offer has been presented: the seller can accept the offer, reject the offer, or provide a counter offer. For the sale to be final, the terms and conditions must be met by both parties.

We will make sure you are well informed and understand all the forms you are signing.

Key Terms

Property Research– This is where we investigate the selling history of the home and the price relative to the market. To do this, an assessment of the current homes on the market and properties that have recently sold will be done. This is where our negotiating power is determined.

Terms– In addition to the standard terms that will be reviewed with you when preparing the offer, you can add in other Clauses (terms) as part of your offer. If they are agreed to, these become binding and need to be upheld.

Conditions- Conditions can be added by the buyer or the seller: these are Clauses in the contract that must be fulfilled in order for the transaction to proceed. Common conditions may include a home inspection or approval of financing. The buyer or seller is given a limited time frame to fulfill the Conditions (typically 7-10 days). If the Conditions are not satisfactorily met, both parties may walk away from the contract without penalty and with no further obligation (the buyer’s deposit cheque is returned).

Deposits- When writing an offer, it is required to have a deposit in the form of a cheque. This demonstrates willingness to provide a faithful transaction and is fully refundable if Conditions on the purchase contract are not satisfied.

Price-The offer price is determined by the many variables that apply in the specific case of the property being purchased. Sometimes, there is a unique way to meet the seller’s needs and still achieve your goals; this is where the services of an experienced Realtor can really help.

Once the offer is accepted it is still pending, until the Conditions are met.

This process requires gathering all your personal and property information for your mortgage broker or bank. After the financing is approved, normally, a home inspection is conducted.

Our job is to make sure this process is completed smoothly before the deadline (Condition Removal Date).

A professional home inspection will help to protect your interest. I can provide you with a selection of home inspectors that I recommend.

A home inspector will assess the structural and mechanical areas of the home and provide a detailed report of their findings. The inspection takes about 3 hours and usually costs between $450-$600.

Condominiums

When purchasing a condo, one of your conditions will be the review and approval of the condo documents provided by the seller. The documents will include minutes from the condo board meetings, amount of money in the reserve fund, management agreements, and bylaws of the corporation.

Once satisfied with all conditions, you must remove the conditions. Upon removal, you may need to provide an additional deposit. It is your obligation to satisfy and remove all conditions before the deadline. I will help guide you to a satisfactory outcome.

Typical possession dates are 30-90 days; however, they may be shorter or longer depending on the finalized agreement between Buyer and Seller. Attention to the following details will alleviate a lot of stress.

Lawyers- By this point, you should have chosen your lawyer. He or she requires all paperwork before the possession date, but you should meet with your lawyer at least one week prior to possession with your home insurance in place. They will also require your down payment, payment of fees, payment of any adjustments or taxes, and signed documents. You will also receive help to finalize anything else that is required before you own your new home.

Down Payment- If your down payment is not ready, make the arrangements to obtain it. It may be necessary to transfer money, which may take up to 30 days, so consult your bank or mortgage broker.

Movers-If you choose to use professionals, make sure to book early. Depending upon the items you need to move, you may need to contact specialists (for example, piano movers).

Insurance-You will require a copy of your approved home insurance when you meet your lawyer. You will also need a copy of the home specifications to provide information regarding the home (for example, the age of the house, furnace, etc.).

Mailing Address-You will want to start gathering all bills, taxes, and statements to send a change of address notice to the relevant people and businesses. You can arrange to have your mail forwarded to your new home through the post office.

Utilities- You will need to set up the date of when to cancel the utilities in your current home and make a change to the new address in advance. Utilities are considered to be your phone, cable, Internet, power, water and gas services.

At last…the day you have been waiting for! After the funds have been transferred, arrangements will be made for John Mattiello to pick up the keys and meet you at your new home.

We will walk through the property with you to ensure everything outlined in the contract has been fulfilled - for example, all chattels stated in the contract are where they should be, and that there is no damage from the seller’s move, etc. If there are any outstanding issues or problems on Possession date, the seller will be responsible for taking reasonable action to resolve them, or the buyer can pursue legal action.

John Mattiello has a great deal of experience in helping buyers objectively look over their new property to make sure nothing is missed.