What are the steps involved in buying a home? Don't let the thought of the process overwhelm you! Follow these easy, simplified steps (with the recommended guidance of a REALTOR®) and you will be in the home of your dreams in no time!
1. Buyer Consultation
During this initial meeting, we will sit down and discuss what you are looking for in a home, your wish list – needs vs wants, as well as your timeline. This meeting will also ensure that you are informed about the process of purchasing a home, any additional expenses you may incur as well as preview what an offer to purchase looks like. Lastly, ask any questions or address any concerns you have about the process.
2. Get Pre-Approved
Obtaining a pre-approval gets you a step ahead in the game. It saves everyone who is involved in the transaction any misunderstandings. If you end up in a situation where you are a competing offer, having your pre-approval will strengthen your offer. The other consideration that makes a pre-approval crucial to the process is to make sure that we are looking at homes that are in your affordable price range. Your preapproval will depend on your annual income, debt(s), and most importantly credit rating.
3. Look at Homes
Every first time home buyer is different – it all depends on the area are you are looking in and your budget that will determine how many homes there are to look at. On average, home buyers look at approximately 5-10 homes before making a decision. Sometimes, after looking at homes, the search and/or budget needs to be adjusted to align with your needs and wants. I always have my clients best interests in mind – it does not matter to me how many homes we look at until we find you the right place to call home.
4. Write an Offer
You have found a place to call home! Writing the offer is probably the most overwhelming part of the process. It’s where you write the amount you are offering to purchase the home for, any terms, conditions, possession date (ranges – 30-60 days is the most common), and where your deposit is collected (typically $5,000 via chq).
There are four conditions that are the most common in a real estate offer to purchase – subject to financing, a home inspection, a property condition disclosure statement and a gas line locate. During this time your lender may also require an appraisal for financing. However, every purchase is unique and the conditions are subject to change depending on the property being purchased. The subject property may require additional inspections if something is discovered during the home inspection on the property being purchased.
6. Condition Removal
Once we have reviewed all of your conditions and only if you are completely satisfied with the results, would you remove conditions. Once conditions are removed, the deal is firm and you are moving ahead with the purchase. Additionally, a second $5,000 deposit is collected (if applicable) that goes towards the purchase.
During the closing part of the transaction, you will meet with the lawyer to sign all the legal paperwork regarding your mortgage, title transfer, and will also provide him/her with the remaining portion of your down-payment. You will (or your insurance provider) will also need to provide proof of home insurance for the lawyer.
The day is finally here! Once we receive the go ahead from the lawyers, keys can be released and you officially become homeowners!! Your REALTOR® will be there to hand over keys to you and to celebrate your new adventure!