Go Back   BuildingHomes.ca - Building your community! > General > Financing, Mortgages and Insurance

Financing, Mortgages and Insurance What options are best for you and your situation?


Reply
 
Thread Tools Display Modes
  #1  
Old 2006-12-27, 02:36 AM
dang dang is offline
Junior Member
 
Join Date: Dec 2006
Posts: 7
Question pre-reqs before booking a house with a builder ??

As the title says, what are the pre-requirements to booking a new house with a builder?

- Do I need to get my mortage pre-approved before even walking into a sales center? that is If I'm able to make the first 20k-30k out of my pocket... I mean mortgage rates do change over the time the house is built... and it would be nice to shop around afterwards.... I'm just not sure how it works, if someone can shed some light into it, that would be great...

- Do I need a lawyer ?

- What else is required other than the downpayment?

I'm new to this forum, and it's already given me some great tips... Thanks guys.
Reply With Quote
  #2  
Old 2006-12-27, 09:16 AM
GregS's Avatar
GregS GregS is offline
Administrator
 
Join Date: Sep 2003
Posts: 4,174
Default

It would be good to know if you can purchase a house and how much you qualify for before you go out shopping, otherwise you are just kicking tires.

You do not need a lawyer until you have decided on which builder/house you want to go with. The lawyer will need to review the purchase agreement with you and advise on any changes.

Other than a down payment.. A job that provides a suitable income to cover the costs of owning and maintaining the house. These funds can be joint with a significant other.

After that there's a whole slew of things, but your financial institution will give you a list of requirements in order to meet the mortgage.
__________________
--
We do everything for
Audio - Video - Data - Security
For Your Home - For Your Condo - For Your Office

http://www.phand.ca/
Reply With Quote
  #3  
Old 2006-12-27, 02:53 PM
dang dang is offline
Junior Member
 
Join Date: Dec 2006
Posts: 7
Default

Quote:
Originally Posted by GregS
It would be good to know if you can purchase a house and how much you qualify for before you go out shopping, otherwise you are just kicking tires.

You do not need a lawyer until you have decided on which builder/house you want to go with. The lawyer will need to review the purchase agreement with you and advise on any changes.

Other than a down payment.. A job that provides a suitable income to cover the costs of owning and maintaining the house. These funds can be joint with a significant other.

After that there's a whole slew of things, but your financial institution will give you a list of requirements in order to meet the mortgage.
Hi Thanks for the info.. I know how the mortgage works, been through the whole process.. but for booking a new house, does the builder require you to have mortgage pre-approved, or I can go in with the initial deposits that the builder requires and book the house without having a pre-approved mortgage?
Reply With Quote
  #4  
Old 2006-12-27, 05:44 PM
SW20 MR2 SW20 MR2 is offline
Senior Member
Regular User
 
Join Date: May 2006
Location: Markham, ON
Posts: 184
Default

No, a clause in the contract has a provision on the buyer obtaining the proper financing.

Quote:
Originally Posted by dang
Hi Thanks for the info.. I know how the mortgage works, been through the whole process.. but for booking a new house, does the builder require you to have mortgage pre-approved, or I can go in with the initial deposits that the builder requires and book the house without having a pre-approved mortgage?
Reply With Quote
  #5  
Old 2006-12-27, 06:06 PM
dang dang is offline
Junior Member
 
Join Date: Dec 2006
Posts: 7
Default

Quote:
Originally Posted by SW20 MR2
No, a clause in the contract has a provision on the buyer obtaining the proper financing.
So a mortgage pre-approval is a must before signing the contract with a builder.
That leads to my next question..

I'm assuming the lender's/bank name has to be given to the builder when signing the contract with the builder. Does that lock me in with that specific lender or the builder allows me to shop around and change the lender before the closing date?
Reply With Quote
  #6  
Old 2006-12-27, 08:00 PM
GregS's Avatar
GregS GregS is offline
Administrator
 
Join Date: Sep 2003
Posts: 4,174
Default

Probably one of the first questions the sales person will ask you is if you are pre-approved.. If not, they may not want to deal with you since it's less likely you are a sale
__________________
--
We do everything for
Audio - Video - Data - Security
For Your Home - For Your Condo - For Your Office

http://www.phand.ca/
Reply With Quote
  #7  
Old 2006-12-27, 09:20 PM
mariam mariam is offline
Member
Regular User
 
Join Date: Sep 2006
Posts: 63
Default

Hey I was just reading this thread and I thought I would tell you about my experience. We bought a house in Fletchers Meadow in Brampton by Mattamy and when we went to the sales office to book it, all that was required of us was a deposit check. They didn't ask for a mortgage preapproval, or an income statement, or if we had a lawyer. We are going to get a mortgage closer to the closing of our home. I know its risky but It works better for us. So as far as our experience goes you just have to have the initial 10% or so to book a new home.

Just thought I would let you know!

Mariam
Reply With Quote
  #8  
Old 2006-12-27, 10:45 PM
SW20 MR2 SW20 MR2 is offline
Senior Member
Regular User
 
Join Date: May 2006
Location: Markham, ON
Posts: 184
Default

No, you don't need it beforehand. The contract just states that you need to get financing within x days or else the contract is void.

You are not locked into a lender until you sit down with the lawyer and sign the paperwork.

Quote:
Originally Posted by dang
So a mortgage pre-approval is a must before signing the contract with a builder.
That leads to my next question..

I'm assuming the lender's/bank name has to be given to the builder when signing the contract with the builder. Does that lock me in with that specific lender or the builder allows me to shop around and change the lender before the closing date?
Reply With Quote
  #9  
Old 2006-12-27, 11:09 PM
dang dang is offline
Junior Member
 
Join Date: Dec 2006
Posts: 7
Default

Quote:
Originally Posted by mariam
Hey I was just reading this thread and I thought I would tell you about my experience. We bought a house in Fletchers Meadow in Brampton by Mattamy and when we went to the sales office to book it, all that was required of us was a deposit check. They didn't ask for a mortgage preapproval, or an income statement, or if we had a lawyer. We are going to get a mortgage closer to the closing of our home. I know its risky but It works better for us. So as far as our experience goes you just have to have the initial 10% or so to book a new home.

Just thought I would let you know!

Mariam
Hi, thanks a lot for sharing your experience. That answers my question. It does make sense to shop around for mortgage afterwards, specially if you have an idea of what you'll get approved for. It is a little risky, but then buying a new house is risky too
Reply With Quote
Reply

Bookmarks

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Booking appointments on March 31st for Greg LenD Stouffville - Mattamy On Main and Wheler’S Mill 1 2007-02-07 09:38 AM
Builder A/C? bendlam Stouffville - River Ridge, MainStreet and Country Lane 6 2006-12-15 01:56 PM
MoM - Who's Your Builder? Kent Stouffville - Mattamy On Main and Wheler’S Mill 12 2006-05-30 03:20 PM
Big delays, dishonest builder <builder name removed> lucian Chit Chat 7 2005-11-18 03:06 PM
Rate your builder RM Milton 0 2005-04-12 10:31 PM



All times are GMT -4. The time now is 01:53 PM.



Copyright © PHAND Corporation
This document may not be used elsewhere without the expressed written consent of PHAND Corporation.
*** There is no association between this website and any builder. ***

Powered by vBulletin® Version 3.8.10
Copyright ©2000 - 2019, vBulletin Solutions, Inc.