Being prepared and knowing what to expect along the way will help the home buying process go more smoothly for you. Working with the right professionals, who educate and support you along the way, will help alleviate the stress of buying your new home.
1. Determine how much you can afford. Based on the combined family income, your down payment, existing debt, regular expenditures and other key financial information, I can help you determine how much you can afford to pay every month for your mortgage payment, within your budget. I will also help you determine the price range that can shop for. While you shop, I will hold a mortgage rate for you.
2. Team up with a real estate professional. Finding a real estate agent to help you search for your dream home is important to the home buying process. The best real estate agent will be a combination of a personal advisor, consultant and negotiator. This expert will show you the homes that match your criteria, guide you through the home buying process, and negotiate the best possible price for your home. Once you have an accepted offer I will work closely with your real estate agent to obtain the necessary paper work related to the property, for loan approval.
3. Make an offer. When you have found a place that you would like to call your own, your real estate agent will help draw up an Offer to Purchase to present to the seller. This legal document specifies the price, the closing date and any conditions.
4. Arrange the home inspection. Many buyers consider including a home inspection as one of the conditions on their Offer to Purchase. A professional inspection is a good way to uncover any major problems with the home. If the home does not pass the inspection, you can adjust or withdraw your conditional offer. A home inspection is not normally required by the lender for mortgage approval.
5. Get the mortgage approved. With a copy of the Offer to Purchase, MLS Listing, Property Disclosure statement and your financial information (proof of employment income and down payment) I will submit your application to the mortgage lender that we have selected. The lender will qualify your application and complete the valuation on the property you have purchased. Mortgage default insurance gives you the ability to buy a home with a down payment of less than 20% of the purchase price. It is added to the mortgage loan amount.
6. Retain a lawyer or notary. It is important to hire a lawyer or notary that specializes in real estate transactions. The solicitor will handle the legal transactions to transfer the title of the property from the seller to your name.
7. Get property insurance. You will need to purchase property insurance that protects your home against fire and other damages. Once you have a policy in place, you will forward a copy to your solicitor and your mortgage lender.
8. Check the details. Once the lender approves the mortgage, I will provide you a letter to confirm the financing. If you are satisfied that all conditions have been met you can remove subjects on your offer and pay the applicable deposit to your Real Estate professional, which is held in trust. The deposit is part of your down payment. With the deal finalized and the financing in place, your solicitor will search the title and check whether there are any unpaid property taxes. Your solicitor will arrange for a survey to be completed, if necessary.
9. Complete the paperwork. A few days before the deal is set to complete, you will meet with your lawyer/notary to review, sign and get copies of all your documentation. At that time you will also provide the remainder of your down payment, pay legal fees, and any additional costs such as property transfer tax, and any prepaid utility expenses for which the seller should be reimbursed, that are due on closing.
10. Pick up the keys. On closing day, your solicitor and the seller’s lawyer will exchange documents and cheques. Your solicitor will register your new home in your name with land titles office. When these tasks are complete, you will get the deed and keys to your new home. You can arrange to move in on possession day!
If you are ready to get started on investing in your new home, call me today 604-726-9550 and let me start working to help you achieve that dream!!