Determining the mortgage you can carry is based on a relatively simple calculation of loan amount, down payment, interest rate and amortization period.
A good rule of thumb when figuring your monthly housing cost is that it should not exceed 32% of your gross monthly family income or 40% of your gross monthly income.
You’re trusting a REALTOR® with your most valuable possession, your home. REALTORS® take this responsibility very seriously. Here’s what we promise you:
- Your REALTOR®is a trained professional
REALTORS® take extensive pre-licensing courses in order to obtain credentials for practicing in real estate.
- Your REALTOR®is continuously trained
REALTORS® keep pace with the times by taking continuing education courses to upgrade their knowledge on a broad range of real estate related issues in order to be able to continue to provide consumers with current advice.
- Your REALTOR®does everything by the book
A REALTOR® must be registered under provincial laws that govern exactly how real estate can and cannot be traded. These regulations are your legal guarantee of professional behavior.
- Your REALTOR®is an ethical businessperson
REALTORS® must adhere to the extensive Code of Ethics of the Canadian Real Estate Association. Several provinces have additional codes of ethics governing real estate professionals. Your interests must always be put first.
- Opportunity for recourse
Should you have concerns about the professional behavior of a REALTOR®, provincial regulators and your local real estate board or association take these matters very seriously and work quickly to resolve any issues.
- Your REALTOR®has access to a local Board’s MLS® System
A Board’s MLS® system is the single most powerful tool for buying and selling a home. Your REALTOR® can provide you with exclusive features of the Board’s MLS® System, such as immediate notification when new properties are listed. You don’t have to wait for it to be posted on a web site.
REALTORS® help you get the most for your home and they remove stress and confusion from the process. Here are just some of the advantages.
Your REALTOR® becomes your home’s champion
When you sign a “Listing Agreement” with your REALTOR®, this is their promise that he or she will use all their skills and resources to get the most for your home.
REALTORS® know how to attract the most potential buyers
Your REALTOR® is an expert home promoter, connected to a network of agents and their buyers. He or she knows how to write compelling ads for your home, and only REALTORS® can place your home on a Board’s MLS® System.
REALTORS® will help you increase your home’s “sale-ability”
You probably have an emotional attachment to your home, and therefore can’t view it objectively. Your REALTOR® will help you present your home in the best light, so buyers will fall in love with it more easily.
Market Knowledge – to help you get the most for your home
REALTORS® are masters of reading the market and pricing your home for maximum return. A REALTOR®’s experience literally pays!
Negotiation Skills – to keep the deal on track
REALTORS® are indispensable when it comes to bargaining with buyers. Tempers can flare and heels can dig in. Your REALTOR®is an expert at smoothing things out.
Many people who try to sell their own home end up using a REALTOR® in the end anyway. Before anybody decides to fly solo through this complex, time consuming and financially perilous process, they should consider these questions.
1. Will you really “save” the real estate commission?
When buyers see a home for sale ‘by the owner’, they see a bargain. They imagine the REALTOR®’s fee going into their pocket, not yours.
2. How many potential buyers will you reach?
Selling a home takes more than just hanging a “For Sale” sign. How will you promote your home? Will you write your own ads? How will you use the Internet?
Promoting a home is a full time job, and you may already have one. Will you be able to take calls at any time? How about screening the callers to figure out if they’re suitable candidates? Not everybody who calls is even suitable to walk through your home, but how do you tell?
Lacking years of experience, the average do-it-yourselfer is merely guessing at their listing price. Often they set the price too low and miss out on thousands of dollars, or they price their home too high and drive away willing buyers.
When an offer comes in, emotions can run high with so much money on the line. This is why direct seller-to-buyer deals often end in disaster. REALTORS® keep it professional and are indispensable when it comes to bargaining with buyers.
The answer to the question is YES! There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes. First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford. There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000.