11. Obligation to the bank

Q. My friend also bought a house and is closing around the same time but he has a better rate can I still get that rate even though I have signed the papers at my bank?

A. Absolutely - you can always shop around until it is logistically impossible for the new lender to meet the funding dead line - typically 5 - 10 banking days. You accept the mortgage when you sign at the lawyer’s.

What you sign at the bank or mortgage broker weeks before closing is a commitment from the lender to you that if all conditions are fulfilled then they will forward the money, with this interest rate, for this amount, on the closing date.

12. Condition of my home when taking possession

Q. The front door was damaged by the sellers’ movers when they moved out and we discovered it the next day when we moved in OR the washing machine isn’t working and we didn’t test it during home inspection because it wasn’t part of the inspection. What should I do?

A. Technically the house is supposed to be in the same condition on closing as it was when the offer was accepted. Unfortunately, there is no easy answer.

Experienced realtors will include clauses that protect homebuyers such as viewing a day before closing. These clauses should be part of the initial agreement of purchase and sale.

Once the deal closes the only remedy, if you can’t agree amicably, are the courts. Then the onus is upon you to prove when the damage occurred, before or after closing.

13. Transferring of utilities.

Q. Do I have to let the utilities know that I am moving into the house and that I will be the holder of the new account?

A. Yes – you do – the lawyer cannot open a utilities account on your behalf.

14. Essentials in your home.

Q. Is there any wisdom you can share about selecting a home?

A. You might not be at the stage of buying your dream home yet. So be realistic. Choose a home that will meet your current needs and a bit more. Also, don’t choose a home with so many unique features that you love but the problem when it comes to resale is that you are the only one that loves them. Focus your creativity on decorating.

Also, be very cognizant of the neighbors – knock on their doors. Check out the neighborhood on weekends and weeknights. Ensure that you are close to schools, public transport and shopping.

15. Mortgage Insurance versus Life Insurance

Q. Do I need insurance and what type? My lender is pushing me to buy mortgage insurance.

A. Home insurance is mandatory, as your lender wants to be protected against fire. Pass on the mortgage insurance and go for increasing your Life Insurance. Life Insurance pays out to your estate rather than the bank and the amount does not decrease as your mortgage decreases.

16. Once I take possession

Q. Any advice for when I move in?

A. The first thing you want to do is buy some champagne, turn up the music high and dance.

You deserve it!

Also, remember to change your address and the locks. Although it might be nice for a while not to get your bills, you don’t want to see what it will do to your credit rating.

Don’t forget setting a budget for new home purchases.
I know I’m taking out the fun but believe me the Ikea receipt can become outrageous.

Invite your friends and neighbors over to show off your new home.

17. University students can earn a degree and a financial return

Q. Is it possible that I can sink my monthly rent into a mortgage?

A. Of course, but you will need an investor. Here’s what I suggest … talk to your parents about this great investment you have come across … a property that has huge upside potential. You realize that they are getting less than 3% through the bank and you feel that this is so unfair. So, why not be financially astute and invest in real estate. For a 50% stake in the property, you are willing to manage the property – i.e. rent it out to your friends.

Isn’t it great being the children of wealthy baby boomers?