PDD Central Home Buying

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Your

home-buying
team
Your team of helpers
There are people who are trained to
help you buy your home. It is a good
idea to have a team of them. Some of
the team members you must use.
Others you do not have to use, but
they can be very helpful. Without
them, you may make mistakes which
can cost a lot. If you have a team to
help, you need not have so many worries.

REALTOR (sounds like REEL-tor)


A REALTOR is a real estate agent
(someone trained to help you buy or
sell your home). REALTORs are members
of the Canadian Real Estate Association
and follow the rules of the association.
They can find information for you
about many homes. (REALTOR is always
written this way.)

A good REALTOR is very important. You can buy a


home yourself, but it is more difficult. REALTORs know
if the home you want to buy is a good price; and they
will work to get the lowest price for you. They can see
problems with a home which you may not see. They
may help you find other people for your team. Most of
all, a good REALTOR can help you through each step
when you buy a home. There are many things to
remember and many things that can go wrong. There
is often no cost to you when you have a REALTOR to

2 Buying a Home
help you buy. The cost of the REALTOR is often paid by
the vendor (the seller of the home).
REALTORs will help you to find the kind of home you
want, at the kind of price you can pay. They can take
you to look at homes until you find the one you like
best. They will help you fill in some of the papers
when you offer to buy. When you buy a home, it is
often called a home purchase.
Ask people you know if they can tell you about a
REALTOR they think is good. Then meet with the
REALTOR to say just what you need and how much you
think you can spend. If you think this
person does not listen to you, or
wants you to buy a home that you
are not sure about, look for another
one. It is very important that you find
a REALTOR you can work with.

If you do not speak


English really well, see
if you can find a REALTOR who speaks
your language. Or have someone with
you who will tell you in your own
language what the REALTOR says. It is very
important to understand.

Ask the REALTOR questions before you start to look for


a home. Good ones are trained and have worked for
some time at this job. Ask if she or he knows the area
you want to live in. If you want to buy a condo, your
REALTOR should know all about condos.

Book 4: Your Home-buying Team 3


Lender
You will probably need to borrow
money to buy your home. Banks and
credit unions are the most common
lenders, but there are others too. The
lender will want to know all about
you and how much money you have.
Some lenders have many rules about who they will
lend to, but some will help you even if you do not
have very much money of your own.
A mortgage (sounds like MOR-gaje) is the money you
borrow to buy a home. It must be
repaid, with interest, sometimes over
many years. Interest is the extra
money you must pay back when you
borrow. When people take out a
mortgage, they sign a legal paper to
say they will pay back so much over
so many years (often 25 years), as
well as the interest. A mortgage
agreement must be renewed every few years. A
mortgage may be approved, but it will not be final
until the home has been found and checked out by an
appraiser (sounds like ap-RAY-zer) who works for the
lender. You can find out about appraisers on the next
page.

Mortgage broker
If you are not sure where to get your mortgage, you
may want to ask a mortgage broker to help you find
one. This person will look for the best place for you to

4 Buying a Home
get money, with the lowest interest rates. The broker
will often be paid for the service by the lender, not
you. But make sure to ask, in case you
will have to pay.

Lawyer
You must have a lawyer. A home is the
biggest thing you will ever buy, so it is
important to make sure there are no
mistakes in the papers. Lawyers work
on different kinds of law, so find one
who knows a lot about home purchase.
Your REALTOR may know a good lawyer you can go to.
If the lawyer makes you feel scared or stupid, find
another lawyer. You do not need that.
You must pay the lawyer. Before you begin to work
with a lawyer, ask how much money it
will cost you. It will be about $500.
Legal papers are written in a way that
is hard to understand. Make sure your
lawyer has told you carefully and
clearly what each paper means. Ask if
you did not understand something.
Ask again if you need to. It is your
lawyer’s job to help you understand
papers before you sign them.

Appraiser
If you have a mortgage, the company
lending you the money will usually need
an appraiser to look at the home you want

Book 4: Your Home-buying Team 5


to buy. This person will check the home and say if the
price is OK. If the appraiser thinks the home is worth
less than the loan you want, you may not be able to
borrow all the money you need. You must pay for the
appraiser. This appraisal is not the same as a home
inspection. It is just for the lender.

Home inspector
Unless the home is new, or has papers
to show it has been inspected in the last
year or two, it is important to pay for a
home inspection. This may cost up to $350. The
inspector will look all over the home, inside and out,
and will tell you if anything needs to be fixed (and how
much the repairs may cost). This inspection should be
done before you sign the final paper to buy the home.
If the home inspection shows something that needs to
be fixed, you can change your mind about the home,
or ask for the price to be less. A home inspection is not
the same as an appraisal. It is for you.

Insurance (sounds like in-SHURE-anse)


Insurance is money you pay each month to
a company. Then the company will help
you with money if you have a big problem
with the house. You may never make a
claim for money and you may think the
insurance is not needed. But if your home is burned
down, or a bad storm damages the roof, or someone
steals your things, then the insurance company will pay
you the money you need to repair or replace things.

6 Buying a Home
There are 2 different kinds of insurance you must pay,
and a third one which may also be good to have:

1. You must have property insurance in case there


is a fire or flood or some
other accident in your
home. If that happens, the
insurance company will
pay to fix the problem. Be
careful if you make a
claim (that means, if you ask the insurance
company to pay for something). You may have
to pay more insurance after you have made a
claim. If you make two or three claims, the
insurance company may not want to keep you
as a customer. Only make a claim if there is
very bad damage.
2. You will need mortgage insurance if you have
borrowed more than three quarters (3/4) of the
money you need for your home. The lender
needs you to pay for this insurance. If you can
no longer make your mortgage payments and
you lose your home, the insurance pays the
lender.
3. You may also want to have life insurance. You do
not have to have this, but it may be a good
idea. This insurance means that if you die, the
insurance company will pay off all your
mortgage at once. Then you do not leave big
debts for someone else (your family or your
roommate) to pay.

Book 4: Your Home-buying Team 7


Builder or renovator (sounds like
BIL-der or REN-o-vate-er)
If the home needs repairs or you want
to make changes to it, you will need to
find a builder or renovator. Ask people
you know if they can tell you about a
good one. Check builders and
renovators carefully. Some may not do good work. Get
more than one company to tell you what it will cost.
This is called an estimate. Make sure the price of the
work is written down and also just what
needs to be done for that price. Keep
the paper carefully, so if there is a
problem later, you can prove what was
agreed on. Ask the builder or renovator
for the names of other people they have
worked for, so you can call those people
and ask them if the work was done well.
You can also check the Better Business
Bureau (the number is in the phone
book) to see if the company is listed with
them. If so, you can find out if there are any
complaints against it. This will not tell you for sure if
the company is good, but it may help.
The builder or renovator will need some money to
start the work. But make sure you keep one final
payment for the end of the job. Do not pay it until you
know all the work has been done well and is finished.

Handy workers
You may need workers after you have been in the
home for some time, just to fix up things and do some
8 Buying a Home
little repairs. It is always a good idea to
know the name of a good plumber and
someone to help you fix the stove or
fridge. If you hear about a good worker,
keep the name of that person so you
will know who to call when you need
help.

Occupational therapist
(sounds like oc-u-PAY-shon-al THAIR-a-pist)
These therapists do not give you exercises. But they
can tell your builder or renovator how to make your
home comfortable. Not everyone needs this person,
but if you have a disability, it is
really important to know that your
home will be accessible (easy to
get around) and you can do things
for yourself. You may need to
have many things changed. You
may need lower work tops in the
kitchen, so you can sit down to
work. You may need grab bars beside the bath, so you
can get in and out. These are just 2 of the things that
the therapist may say you need.

Movers
Unless you plan to move all
your things yourself, or you
have friends and family to help,
you will need a moving
company. Do the same here as
for the builder — ask people
Book 4: Your Home-buying Team 9
you know if there are movers they think are good. Get
the company to give you a written paper which says
how much the move will cost. You can ask more than
one company before you choose the one you think
will be best. It is a good idea to take out a small
insurance just for the move, in case your things get
broken. Your home insurance will not cover damage
that happens outside your home.

Now you have your team. All these people are there to
help you. You do not need to feel you are all alone in
the big job of buying a home.

What the words mean


Appraiser (sounds like ap-RAY-zer). Someone trained
to look at your home and say what it is worth. You
must pay an appraisal fee for this service.
Home inspector. Someone trained to look all over a
home to say if anything needs to be fixed.
Insurance. Money you pay to a company so that if
you have a big problem it will help you out. There are
different kinds of insurance.
a) Property insurance. It covers the cost of your
things and also your home. If you have a fire or a
10 Buying a Home
flood, or a burglar breaks in and steals things,
you can get insurance money to repair or replace
what is damaged or lost.
b) Mortgage insurance. If you borrow more than
three quarters (3/4) of the money you need for
your home, the lender will want you to pay this.
The insurance will pay the lender (not you) if you
cannot make your payments and lose your
home.
c) Life insurance. If you die before you have paid all
your mortgage, life insurance will pay off the rest
of your debt.
Lender. The company which lends you the mortgage
you need to buy a home. It may be a bank, a credit
union, an insurance company or some other big
company.
Mortgage (sounds like MOR-gaje). The money you
borrow from a bank or other lending company to buy
your home.
Mortgage broker. A person who helps you find the
best mortgage.
REALTOR. A REALTOR is a real estate agent (someone
trained to help you buy or sell your home). REALTORs
are members of the Canadian Real Estate Association
and follow the rules of the association. They can find
information for you about many homes. (REALTOR is
always written this way.)
Renovator. A builder who can fix up walls, windows
and such like if they are in poor condition.
Vendor. The home seller.
Book 4: Your Home-buying Team 11
Here is a list of the booklets which
may help you buy a home:

• The first steps when you buy a home


• Mortgages and other money matters
• What to check when you buy a home
• Your home-buying team
• Make an offer to buy a home
• When it is time to move...

These booklets are for general information only.


They do not take the place of professional help.
You will still need to talk to
a REALTOR (this is a real estate agent), a lawyer, and a lender.

You can get copies of these booklets at:


The Home Program
c/o CTD Housing Solutions Edmonton Ltd.
10242 105 Street NW, 6th Floor
Edmonton, AB T5J 3L5
phone: (780) 504-6161
fax: (780) 471-6831
email: homeownership@thehomeprogram.ca
website: www.homeprogram.ca

This booklet is one of a series produced for


the Calgary Mennonite Centre for Newcomers and
the Calgary Society for Persons with Disabilities.
Funding from the Calgary Region Community Board,
Persons with Developmental Disabilities
(Community Capacity Initiatives Fund)
is gratefully acknowledged.

© 2004 Calgary Region Community Board PDD

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