48: Navigating Your First Home Purchase (Part Two) with Talia Thomas
Aug 10, 2023
Carolyn
In this episode of the podcast we continue our in-depth conversation with Talia Thomas, an upcoming realtor in the GTA. She helps to unravel the intricate process of home buying. We'll take you through the financial implications beyond the standard down payment, and enlighten you about those hidden costs like closing costs, home inspection fees, and appraisal fees that may catch you off guard. Talia, with her refreshing take on the real estate market, emphasizes the significance of maintaining a good credit score and how spending habits can influence your home buying process.
Although home buying involves managing finances, it's also about finding the right place that corresponds with your needs and that best fits into your budget. We'll guide you on how to evaluate homes and work with agents to make this overwhelming process a so much simpler. Most importantly, we'll share some practical tips on how to balance your needs and wants with your budget, and how realtors can help you navigate through this mammoth task. So, get ready to arm yourself with all the necessary knowledge to make confident strides towards home ownership.
In this episode of the podcast we continue our in-depth conversation with Talia Thomas, an upcoming realtor in the GTA. She helps to unravel the intricate process of home buying. We'll take you through the financial implications beyond the standard down payment, and enlighten you about those hidden costs like closing costs, home inspection fees, and appraisal fees that may catch you off guard. Talia, with her refreshing take on the real estate market, emphasizes the significance of maintaining a good credit score and how spending habits can influence your home buying process.
Although home buying involves managing finances, it's also about finding the right place that corresponds with your needs and that best fits into your budget. We'll guide you on how to evaluate homes and work with agents to make this overwhelming process a so much simpler. Most importantly, we'll share some practical tips on how to balance your needs and wants with your budget, and how realtors can help you navigate through this mammoth task. So, get ready to arm yourself with all the necessary knowledge to make confident strides towards home ownership.
Hello everyone. My name is Carolyn. Welcome to the Saving for your First Home podcast. I am the CEO of the Financial Moment. We offer money coaching for those who are ready and willing to make financial changes in their lives.
Speaker 1:
For the most of us, there comes a point in time where we think to ourselves it would be really nice to own property, but it sometimes can feel like a pipe dream and not very easily obtainable. So I created this podcast to give you all the information and tools you need to take the steps forward toward home ownership. Take it from me my husband and I started our lives together, working part-time jobs with a young child. Fast forward, through many hiccups and failures, we stepped our feet into our very first home. For us it was a pile of dirt, but eventually our family home was built on that dirt. Now we are in the midst of growing our investment property portfolio. I created the savings for your first home podcast to give you easy, actionable tools for you to do the same. If you have that same gut feeling that I did and want to create a life for yourself and your growing family, but don't know where to start, you are in the right place. Let's do this.
Speaker 1:
Hello, welcome back to the Saving for your First Home podcast. I'm Carolyn, your money coach, so this is part two of a very informative interview with Talia Thomas, a realtor in the GTA, and if you missed last week, you need to go back and listen to that episode because she was dropping some real gems and great information for first-time home buyers. So this is part two of my interview with her and we're going to get into some tough topics and questions. So be sure to share these episodes with a friend or a family member that you think is going through this process, because the more information we share with each other, we are all better off and we're moving our community forward. Okay, so let's dive in. Do we have to be aware of other things other than the down payment?
Speaker 2:
Absolutely. I think the big focus is always on the down payment. People always are like, oh my gosh, I have to save for this down payment. Absolutely you do, but there are several additional costs and fees for first-time home buyers that they very well should be aware of when purchasing a home. The biggest thing are closing costs. Closing costs can really affect your ability to close on your transaction. They typically range from two to five percent of the home's purchase price. That includes fees for loan application and appraisal, title search, your lawyer, insurance, including. Costs can very well vary depending on factors such as the location and, of course, your loan type. So really make sure that you have that little extra cushion because you cannot provide or you can't pay for your lawyer to close, or you have an appraisal and something has to be done. Definitely save that and it doesn't seem like a lot from the two to five percent, but depending on the home that you're searching for, two to five percent could be a significant amount.
Speaker 1:
Right, exactly, especially, like you said, if we're talking GTA, then that's actually quite significant.
Speaker 2:
Isn't that absolutely GTA? That goes out of the water. Some of you have home inspection as well. This is highly recommended. I know some people don't like to do it. I am just such a proponent of having professionals. Yeah, you have your real estate but you have so many other professionals that we will always recommend to you and we will always have that network. For we're able to see the material things around the house but you can't see something behind a wall. For a sugar property the other day and they really felt that it could be a fixer up or end of like you know, things such as mold or water or new roofing or foundational thing. It's electric depending on the kind of plumbing and heating that's installed.
Speaker 2:
Some of the maybe a lot of people do want an older home that they could just fix up and like kind of like build their life into. I would definitely get that home inspection, definitely. It's only a few hundred dollars but again the money adds up and it depends on the size and complexity of the home. But definitely strongly recommended appraisal fee. A lot of lenders before they're going to give you that preapproval amount and for certain past you that money, so you're good to go for that home. They want to determine the market value of that property. So there's an appraisal fee to be paid, and by the buyer, and it can range from a few hundred dollars or two thousand dollars. Again it depends on the size and complexity of the home. Always recommended home insurance mortgage lenders or quiet, so they ought to make sure they're projecting their investment before they loan you that money. So again, that varies depending and it's usually paid annually or as part of your monthly mortgage payment.
Speaker 2:
Property taxes Oakville has known to have some very high property taxes same with within the GTA, but you got to be ready for that and they're typically like, assessed by the local government and it can vary based on location and, again, the value of the property. Morgan shirt, that is another one. Hla fees the government can collect on that. So it's essential to kind of budget for these additional costs and fees. Planning the word proponents of budgeting, planning, making a plan. We don't want any surprises, we want to ensure that again, it's something that you can enjoy. It's a smooth home buying experience and process and it's also recommended that consult with somebody, talk to a real estate agent, talk to a mortgage lender for a financial advisor, just somebody who can provide you with specific information and estimates based on your particular circumstances.
Speaker 2:
Yeah, that's a lot Right.
Speaker 1:
I mean so much more than the down payment. There's just so many things and factors that you have to consider Now, just speaking from your experience, have you seen something where maybe it didn't quite go so well?
Speaker 2:
An example so I haven't experienced this myself. However, I follow a lot of other real shares that talk about their stories and I think one of the most recent ones I heard is somebody was so ready for their down payment and like they had everything together, but the credit score or another example is you get so excited, everything is good to go and in real estate, us realtors always say the deal is not done till the deal is done, until you have the keys to that place, that house is not yours. So people get really excited and they go and they will either purchase a new vehicle to go along with the new house or rack up a bunch on their credit card trying to furnish this home. Lenders do a once over Again just before closing. It's not long before closing and if there's anything that is a significant red flag for them, your credit is completely different. Your credit is completely different. That home is not yours and you will not get approved for that.
Speaker 2:
So my biggest thing is do not. Do not go spending on your credit card, do anything that is going to significantly affect your credit before the closing of your home. Yeah, just hold off on the new car, wait, wait a little. Read a little bit. Wait till you have the keys. If you want to, you feel you can afford it.
Speaker 2:
Wait because you're deemed as more of a risk now and you're racial now changers, so you want to be really, really careful. I have heard of it, have an experience of it myself or with any clients, but it is something to definitely keep in mind. You don't want to lose out on your opportunity in a market that's perfect for you because your car payments are the interest rate on your car payments, so be mindful of that during your planning as well. Things like that. You don't want to lose any sort of debt that's taking up a lot of room that you could possibly pay down for. Definitely definitely do that first, and then, when it comes to those who are closer to closing, don't do anything significant that will affect your credit.
Speaker 1:
Yeah, really good advice. So how do we evaluate the different homes and then find the right one that fits our budget and needs? Is there a criteria that you kind of go through to evaluate a home and say, yes, you know what, this is the right one for me.
Speaker 2:
Yeah, I think this is a great question, because the key word here is need. Yes, of course you want to have the house of your dream and that you've always desired, but not as the expense of your budget or your needs. Not everybody starts identifying your budget.
Speaker 1:
If you're anything like I was, staying on top of your budget is not an easy task. Paycheck to paycheck would go by and you're no further ahead. For my listeners, I am giving you this free guide that is going to take you to the next level. It's got 10 easy tips to follow to help you stay on track with your budget. Just head to thefinancialmomentcom backslashbudget-tips, Enter your information and you can download this guide right now.
Speaker 2:
Now can you comfortably afford your expenses, including your mortgage, your utilities, your maintenance, insurance, taxes, taxes are a big one. Make a list of your needs, your essential requirements. How many bedrooms, how many bathrooms Do you need to be close to amenities location, your size, the number of school districts, if that applies to you. If you have kids, you have to be close to that. Any specific features that are important to you and your lifestyle are the most important. So evaluate your criteria and maybe your criteria for the next few years, especially if you plan of building a significant amount of equity in that home. So I think your evaluation is based on your personal needs.
Speaker 1:
Okay, yes, exactly. And then for my mild question, I'm just wondering, like a lot of people say okay, I have to get a real estate agent, I'm going to have to pay the fees. I know that for a buyer they don't have to pay the fees, correct? Is that how it works?
Speaker 2:
No, so gay. To buyers? You're right, these are buyers' can. There are things that apply where they can, but typically in the standard option they do not. We are paid by the listing agent. We are given up percent. I always say if we play a great role.
Speaker 2:
I love this question because it's a chance for me to like magnify and highlight the many hats that we wear as real estate agents. And I think the biggest thing to know is not every realtor is like another one you've met. I think this is big. It's kind of like when you're a job interview, interview different realtor you resonate with. Remember, this is supposed to be fun, it's supposed to be exciting. You're supposed to like share this vibration. So the biggest thing is yeah, for buyers, great, we are paid by the listing agent. But even when we're listing your home, just think about all the things that we're able to do. So something you might see even a few months ago is not the same. We're in a completely different market right now.
Speaker 2:
So, real estate agents, what they typically do is a lot of research and do diligence. We have strict due diligence that we have to say a price you would follow. We're bound by code ethics. We are able to sift through all the noise in the media that happens a lot of the time and the misinformation, and we make sure that the needs of each client is exactly that they are needs. So the biggest thing, I guess, is education and guidance. I think that's the biggest thing. Explaining the process the process is not always the same. You might have bought a house before, but the next process is not always necessarily the same. It's a little bit easier, of course, to experience it, but it's not always the same. Explaining your mortgage and down payment and having that network of people that can kind of give you those examples, for if you were buying a house of this amount and like how much that would cost you. It's not only like the financial responsibility but it's helping our clients with like manage expectations. That's one of the biggest things I find we're really should create for is managing expectations, because sometimes this can become a really overwhelming process, right? So you kind of want to be able to reel that person in and kind of like make sure everything is aligned the way it's supposed to be and just make sure you're setting realistic expectations and informed decision.
Speaker 2:
The property search is the biggest thing.
Speaker 2:
We have access to multiple listing services, other real estateers, talks of other real estate, other deals, other people we've worked with and their listing property showings were great to point out things that you might necessarily be able to see if you've never purchased a home. Before Transaction management we do a lot of paperwork to go in make sure that you're following all the dates, like if you have a certain date that you need to show proof of, like your preapproval amount at this percent, like we keep your price that, hey, how have you done this is coming up in a few days. Like let's go through the last walkthrough of the house. We are allowed to do this. How about we schedule it for this day? So the transaction definitely has to be managed because there are a lot of dates that come in schedules, putting it in a schedule and making sure that your client is really protected In this purchase. And, of course, we're great at negotiations Something that you wouldn't maybe remember to negotiate for yourself. Your agent is there to do that for you.
Speaker 1:
So, yeah, so many great things and bonuses that for a first time home buyer that you're getting, and you don't even have to pay the fee, like really the seller pays for it. Yeah, exactly, so what I'm getting from you is that really find the person that is going to advocate for you Right, is going to make sure that you're keep on track, that you're sticking to your budget, that your expectations are being held in check.
Speaker 2:
You know things. Be looking at a particular neighborhood is good to know houses that you're looking at. They have an offer presentation date, what it ends up selling for. There's a lot that goes into expectations. There's a lot. We have to keep in touch with you, checking through the listing service, do different times during the day to kind of see what's happening. Becoming best friends with the listing agent that's always a good thing.
Speaker 1:
There are so many good things. Well, you know what I appreciate you sharing all of this knowledge with us. It has been a pleasure having you on the show. Where can people find you? Is there somewhere that we can reach out or Absolutely.
Speaker 2:
I'm very reachable direct contact. But social media is a big thing. So Instagram you can follow me at tailored by Talia, but by is actually BUY, so it's tailored by Talia. You can find me on TikTok as well. It's tailored by Talia as well. Some great videos, some great information. You can always send me a DM or you can send me an email I'm sure you'll link it below, but it's just tailored by TaliaRealEstate at gmailcom.
Speaker 2:
I'm always open to having conversations. I see my central clients and my clients as friends. You build a relationship. Feel free, even if you're not in the process and you just want me to connect you to the network I have. I'm happy to do that. Just get the conversation started, Get your plan willing. Your expectations may just have something out there, because I truly believe you don't know what you don't know. We want to get you in the police, where you do know a little bit more. Contact me anytime. I'm happy to have conversations, I'm happy to answer questions. I'm happy to connect you, even if we don't end up working together. I have a great network, even other realtors, that we all uplift each other. It's great. I love what I do, so contact me anytime.
Speaker 1:
Oh, that's so great. We love to hear the passion that comes out of what you're saying to us, so thank you so much again for sharing For our listeners. If you need some help, definitely reach out and check out her Instagram and TikTok Absolutely, thank you so much for having me.
Speaker 2:
Thank you.
Speaker 1:
I hope you guys have had a great interview. Such fresh perspective on the things that we need to know navigating in this market, understanding what costs are involved. So many great takeaways. So be sure to share this episode with one other person that you know may need this information and keep coming back to this podcast, because we are going to continue to bring some experts and provide you with all sorts of information to make sure that you are financially prepared and ready for your next financial decision. We'll see you next week. Thank you for listening. We are committed to helping you place your very first steps into your new home. See you next time.