BC HOMES AND REAL ESTATE.COM
RE/MAX Sabre Realty
102-2748 Lougheed Hwy., Port Coquitlam, British Columbia
P: 604-942-0606
F: 604-942-9533
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RE/MAX Sabre Realty
102-2748 Lougheed Hwy., Port Coquitlam, British Columbia
P: 604-942-0606
F: 604-942-9533
This site was designed as a consumer service to help buyers make informed real estate decisions.
We know that it is often difficult to get relevant information when you are looking to buy or sell a home.
In order to better educate and inform buyers, we have provided comprehensive information as a Free No-Obligation Service. Many buyers who visit this site are so impressed with this service that they will contact us (or one of our trusted partners) in order to assist them in the purchase or sale of their home.
We truly hope that you find these reports, information, tools and resources helpful and we look forward to helping you find your Perfect Home!
Questions to Ask Yourself before you start looking for a home.
Getting Started
Before you start looking for a home you should ask yourself a few questions.
Where do you want to live? Do you want to be close to schools, shopping, or work?
What kind of house would you like (need)? Are you looking for a particular style?
How many bedrooms and bathrooms do you want? Do you want a yard?
How much house can you afford? Have you consulted a Real estate agent or mortgage lender to determine the size of the mortgage you would qualify for?
Here are a few tips to help you get organized:
- Pull a credit report on yourself and make sure the information is accurate. If you find any errors, take steps to correct them immediately.
- Browse through real estate advertisements in the newspaper and Homes magazines. This will give you a good feel for the types of homes that are on the market and what they cost.
- Visit open houses on the weekend. It doesn’t cost anything to look, and looking at a few different homes might give you some ideas for things you’d like in a house but haven’t considered.
- Start saving money - you’ll need to have cash on hand for a down payment and closing costs.
- Don’t incure any additional debt. Pay down your credit cards - and don’t apply for any new ones. Don’t make any major purchases on credit - buy the furniture or car later.
- Contact a Realtor. Your Realtor can help you determine how much you can afford, and they can provide you with information on homes that may interest you. The Realtor will also help you complete all of the necessary forms when it comes time to make an offer.
How Much House Can Your Afford
Simply put, you can afford a house that costs as much as the largest monthly mortgage payment you qualify for.
A quick way to estimate the size of mortgage you qualify for is to take your gross monthly income (that’s before taxes and other deductions) and multiply it by .28. This works out to just over 1/4 of your gross income.
Mortgage companies use something called qualifying ratios to determine how much they’ll lend you. Most mortgage companies use either a 28/36 ratio or a 25/33 ratio. The first number in each pair is the percentage of your gross income that the lender would consider acceptable as a monthly mortgage payment (i.e. if you make $3,000 per month, 28% of that is $840 per month).
The second number in each pair is used when all debt payments are considered, not just the mortgage. (i.e. if you make $3,000 per month, but also have a $250 a month car payment, 36% of $3,000 is $1,080, minus the $250 car payment equals $830).
As you can see, in this example the numbers work out to be almost the same. Obviously if you have more debt you would qualify for less.
Why Should Your Work With A Real Estate Agent
Working with a professional real estate agent to buy your home is a good idea for several reasons:
- They’ll analyze your financial situation to help you determine how much you can afford.
- They’re familiar with the process of buying a home and can explain things to you.
- They can easily access information on all properties listed for sale by real estate agents in your area.
- They can set up appointments for you to see homes that interest you.
- They’ll help you complete all the necessary paperwork when it comes time to make an offer.
- They’ll help you arrange financing.
- They’ll be there at closing to answer your questions and make sure everything runs smooth.
Choosing a Real Estate Agent
Searching for your dream home can be a time consuming experience. Working with a professional real estate agent will make the process much more efficient.
Since most people spend a fair amount of time with their real estate agent, it’s important to choose a real estate agent you feel comfortable with, and one who is responsive to your needs. The following questions will help you decide if a particular Realtor is right for you:
- Do they return your phone calls?
- Do they ask you questions to determine what you want/need in a house?
- Do they perform a financial analysis to help you determine how much you can afford?
- Do they explain things clearly?
- Do they suggest financing methods?
- Do they seem knowledgeable about the community?
- Do you feel comfortable spending time with them?
If the answer to most of these questions is "Yes" - you’ve found yourself a great real estate agent.
If you find yourself answering "no" to many of these questions, or to any individual questions that are important to you, you should keep looking until you find a real estate agent you feel comfortable with.
2) The Foreclosure Process in British Columbia
In British Columbia, it is the judicial sale process that involves licensees most frequently. The petitioner or any of the respondents (i.e. 1st, 2nd or 3rd Mortgagee) can apply for a judicial sale, also known as a court-ordered sale, which will be carried out under the supervision of the court.
The judicial sale begins with a Demand Letter to the borrower, giving the borrower a short amount of time to pay out their mortgage. Then a petition is filed in the BC Supreme Court registry, which starts an action: The Order Nisi, which fixes the time for redemption. The redemption period, usually six months, is the time period given to the borrower to redeem the mortgage, as well as the amount required. Where a lender (respondent) applies for such an order, he or she may satisfy the court that the value of the property is high enough to satisfy the costs of the sale and the claim of the petitioner. If the property is sold by judicial sale, the petitioner is entitled to recover the difference between the sale proceeds and the mortgage debt from the borrower.
Once a petitioner or respondent has been granted a conduct of sale, they act in the role of the vendor pursuant to the Court Order, only for purposes of disposition of the asset, and can now list the property for sale with a realtor.
When a party has expressed an interest in making an offer, their realtor or the selling agent will draft an offer, directed at the Vendor (usually one of the Mortgagees.) At this point their realtor should confirm that the purchaser understands that although they will be negotiating with the vendor and a deal may be agreed on, there is still a possibility that, when the offer is presented to the courts, the offer may be subject to a sealed bid process by other purchasers.
Once the offer is made and the terms are agreed to, the Purchaser commences their Subject Period. If the purchaser removes its subjects, the offer will be presented to court.
In the courtroom, the process works as follows:
- The vendor’s lawyer presents the purchasers’ offer to the Judge, (in foreclosure proceedings they are referred to as Masters.)
- The Master asks if there are any other parties in the courtroom who would also like to submit an offer. If there is not, and the appropriate marketing has taken place and the price of the offer is market value, the Master will approve the sale. If there are competing offers in court the Master will instruct all parties, including the original purchaser to leave the courtroom and resubmit their final offer in a sealed envelope to the vendors lawyer.
- After these offers have been submitted, the Master reviews the offers and approves the best deal.
The following chart has been reproduced with the permission of the UBC Commerce Real Estate Division.
Steps in a Foreclosure Proceeding for BC
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Demand Letter
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A letter accelerating the loan and giving the borrower a short period of time to pay out the mortgage or else face foreclosure.
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Petition
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Filed in B.C. Supreme Court registry. The lender is the petitioner, while the borrower and all other charge holders whose interests rank in priority behind the lender, are the respondents.
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Order Nisi
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The first order of the court. It establishes, amongst other things, the amount required to redeem the mortgage and the time period given to the borrower to redeem.
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