THE RIGHT NEIGHBOURHOOD

Choosing the neighbourhood that's right for you

When buying a home, the neighbourhood you select will not only play a pivotal role in your family's life, but in the resale value of the property.
One person's ideal neighbourhood however may vary greatly from another's. But, regardless, there are some needs and wants that generally do not change. The distance from your new home to schools, churches and shopping, for example, will not only affect how you and your family settle into your new home, it will also draw or turn off a perspective buyer.
A good first step is to enlist the services of a REALTOR® who works in the area you are thinking of moving. REALTORS® are very familiar with the communities in which they work and can answer many of the questions you will develop during your search.
Check the lifestyle .A home is a part of a larger community. And some are more desirable than others. Some communities are geared more to young families, others to older adults and still others to singles or an eclectic mix of residents.
Never buy in an unfamiliar community or neighbourhood unless you have spent some time there both during the week and on weekends, day and night. Drive and walk around. Talk to store owners and people you meet on the street. Ask what they think of the neighbourhood.
If there are vacant tracts of land where you plan to buy, check with local authorities to see what the proposed land use might be. The last thing most homeowners want is the development of a mall or a high-rise office building across the road from their newly-purchased property.
Don't let particular things in a home that appeal to you override its location and potential subsequent resale value. When analyzing a potential property, ask yourself if you can imagine living -- not just in this home -- but in this neighbourhood for quite a long time.
Remember that someday you may have to sell your home to someone else and things that may not be important to you -- such as distance to schools, shopping, doctors and work -- may be important to other buyers.
Location, locationIn addition to finding the right neighbourhood, consider the immediate homes around the particular property you want to buy. Are they well maintained and worth the same or more than the home you are considering?
Is the location a quiet area or a major traffic thoroughfare? What kind of privacy does the backyard provide? Does it get the morning or afternoon sun? If there is no house behind you, who owns the property and how will it be developed?
Homes located further away from the centre of an urban area are generally cheaper. Are you prepared to invest the time and money it takes to commute and how long of a commute are you prepared to commit to? Is there public transit and good access to major highways nearby?
If you have kids in school, what kinds of schools and services are available? Will your kids have to be bused to their school? If a school is close by, will they have to cross any major intersections?
Being close to a school, on the other hand, may have some drawbacks -- few owners want the noise and disturbance of being located right next door.
Finding malls, grocery and specialty stores in urban, residential areas is rarely a problem. But in neighbourhoods further away from urban areas, you may need to drive to the nearest convenience store. And getting to the local grocery store, pharmacy and other support services may require an even longer trek.
It's great to be located near parks and recreational facilities, but few homeowners appreciate the high cast of tennis court lights beaming into their back yard. If the home you are considering backs onto such property, drive around the area and see how often the baseball diamonds, soccer fields, swimming pools and skating rinks are being used and when.
More serious concerns are having such things as gas stations, airports, railway tracks, commercial developments, major highways and cemeteries very close by.
Finally, if your heart is set on finding that one-of-a-kind 150-year old Georgian home, you're not going to find it in a newer development. If you want large bedrooms and bathrooms, narrowing your search to an older part of town where homes are generally smaller, may prove disappointing.
Before making any decisions, think of your lifestyle and how a particular location would enhance or detract from it.

REALTOR EDUCATION REQUIREMENTS

When consumers choose a REALTOR® to help them buy or sell a property, they are placing their trust in someone who is knowledgeable and who will protect their interests. A REALTOR'S® role is to provide clients with sound, effective, timely advice and professional service.
More than ever, in today's fast-paced, high-tech world, REALTORS® are being challenged to continually improve their professional standards by keeping informed of developments and trends in real estate. Buying and selling a property today is a complex undertaking that involves large sums of money, stringent legal requirements and a tremendous depth of knowledge and experience. Along with accountability and high moral conduct, education has become a cornerstone of the real estate profession.
Real estate licensing changesRealizing the need for real estate education that emphasizes consumer protection and the development of increased skills and knowledge, a new integrated learning system for real estate licensing education was recently introduced in Ontario. The new system, spear-headed by the Ontario Real Estate Association, recognizes the need to standardize learning across all provinces and incorporates innovative techniques, new program designs and diverse delivery systems.
Already serving as a model for other provinces, Ontario's new system includes a Real Estate Encyclopedia and CD Rom (which integrate all textbooks and materials into one easy-to-use resource), course changes and a new curriculum. The system places an emphasis is on multi-media communication and hands-on learning.
Keeping standards highPublic expectations of the real estate profession today are higher than ever. Ontario's new approach to real estate licensing education and emphasis on ongoing educational development by real estate practitioners continue to uphold the profession's commitment to fair dealing and high integrity.
The individual receiving his or her real estate licence today has been through an intensive process of interactive learning, self study and examination. People are going into real estate today with ever-increasing levels of education. A recent U.S. study showed that 30 per cent of people entering the real estate profession had a college degree and 20 per cent had a graduate degree.
The purchase or sale of property is a business transaction of tremendous complexity. There are distinct advantages to having a REALTOR® who is well-educated, knowledgeable, experienced and sincere. A REALTOR® also has access to an array of services, including the Multiple Listing Service, which can provide you with instant, thorough and accurate information on properties that might interest you or issues that concern you.
If you are selling, a REALTOR® will not only fairly assess your property, but listen to you and develop a marketing plan that best meets your needs. He or she will give you tips on how to improve the marketability of your home and make a first good impression to potential buyers.
If you are buying, a REALTOR® will act as an intermediary and help you deal at arms length with potential vendors. He or she will assess what you can realistically afford, target appropriate neighborhoods, provide facts on the costs of running a home and what to look for when considering a particular property.
A REALTOR® can also provide you with a list of lenders, lawyers, mortgage brokers and other professionals whose expertise you may require to complete a real estate transaction. In addition, he or she can help you evaluate all the mortgage options available today to help you obtain financing at the most attractive prevailing rates and terms.

HOW CREDIT SCORES AFFECT YOUR INTEREST RATE

Each year thousands of prospective homeowners are shocked to discover their credit history will hinder their ability to own their dream home.
The very first thing that your loan officer checks when you apply for a mortgage or any kind of credit is your credit score. You are rated in terms of the score which in most cases influences the amount you can borrow. Understanding your credit score in a better way enhances your chances to develop a higher score and thus benefit from loans at better terms and conditions.
A credit score consists of many factors: your payment history, your credit card balances, bank accounts, including savings and checking accounts, and any other form of credit including all outstanding personal loans, mortgage loans, store credit cards, etc.
Credit scores are calculated from many different forms of credit data in your credit report. Each credit reporting bureau has their own standards and formulas that they use for the purpose of calculating a consumer’s credit score. The following is a generalized classification of a credit score rating:
Excellent credit rating - No late payments, no collection notices, no bankruptcies or repossessions.
Good credit rating - May contain a late payment within the last two years.
Fair credit rating - More than one late payment. May or may not have a bankruptcy or repossession in the last two to three years.
Poor credit rating - Recent collection attempts, late payments within the last year, bankruptcies and/or repossessions within the last two to three years.
The reason why a credit score is important is that it will determine your eligibility for a loan. A low credit score may hinder approval, and it will also impact the interest rate you will have to pay for the money that you borrow.
Since individuals with less than perfect credit traditionally present more of a risk of defaulting on a loan. Lenders are able to justify charging more interest to those consumers. The extra interest the lender earns on the loan is intended to compensate the lending agency in the event the consumer defaults on the loan. Over the course of a 15 or 30 year mortgage, those extra interest points can add up to an astounding amount of money.
Your credit score is the indication of your financial health. You should do your best to avoid damaging your credit history with late or missing payments, too many outstanding loans or too many loan requests. Watching your credit score closely especially before you make any major purchases will help you avoid unwanted surprises.



The material in this publication is provided for your informational purpose only and is not intended to substitute professional advice.