Buyer Package

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Mortgage Terminology Agreement of Purchase and Sale: A legal agreement that offers a certain price for a home. The offer may be firm (no conditions attached), or conditional (certain conditions must be fulfilled before the deal can be closed). Amortization Period: The amount of time over which the entire debt will be repaid assuming the same Interest rate. This is normally 25 years for a new mortgage. Appraised Value: An estimate of the market value of the property. Closing Date: The date on which the sale of a property becomes final and the new owner takes possession. CMHC Insurance Premium: Mortgage insurance insures the lender against loss in case of default by the borrower. Mortgage insurance is provided to the lender by CMHC and a premium is paid by the borrower. Conventional/High-Ratio Mortgages: A conventional mortgage is one that does not exceed 80% of the purchase price or the appraised value of the property, whichever is less. Mortgages that exceed this limit must be insured against default and are referred to as high-ratio mortgages. OA SL Home Equity: The difference between the price for which a home could be sold (market value) and the total debts registered against it. Interim Financing: Short-term financing to help a buyer bridge the gap between the closing date on the purchase of a new home and the closing date on the sale of the current home. Mortgagee and Mortgagor: The lender is the mortgagee and the borrower is the mortgagor. Mortgage Pre-Payment: As defined in the mortgage agreement, this gives the mortgagor an opportunity to make special payments over the regular payment schedule. P.I.T: Principle, Interest and Taxes. Together, these make up the regular payment on a mortgage if you elect to include property taxes in your mortgage payments. Porting: A feature of some mortgages that Iets you keep the actual interest rate and remaining term you have on the outstanding balance of your current mortgage, if you move. Any additional money that your borrow will receive the current rate in effect at that time for those funds. Pre-Approval: A pre-approval gives you the confidence you need when making an offer to buy a home. lt lets you know how much you could reasonably borrow and allows you to focus on properties In your price range. A preapproval also gives you an idea of what your payments will be and guarantees an interest rate and term for a set amount of time. Principle: The amount of money borrowed for a new mortgage or now owing on an existing one.
Price vs. Activity Definition of Market Value Market value is the highest price estimated in terms of money which a property will bring if exposed for sale on the open market and allowing a reasonable time to find a purchaser who buys with the knowledge of all the uses to which it is adapted and for which it is capable of being used. Frequently it is referred to as the price at which a willing seller would sell and a willing buyer would buy, neither being under abnormal pressure. Some Things to Keep in Mind - Well priced properties generate immediate interest among agents and buyers -If the price is too high that excitement never happens -Dropping the price later does not generate the same type of enthusiasm OA SL
Page 1 and 2: Home Buyer Package Courtesy Of: Oma
Page 3 and 4: Company Mission Statement RUN WITH
Page 5 and 6: About Larissa As a Realtor® that y
Page 7 and 8: Historic Sales Data OA SL
Page 9: The Offer Process OA SL
Page 13 and 14: Buyer Net Sheet Purchased Price of
Page 15 and 16: Tips For Buying 5. Learn about the

Buyer Package

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