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The Home Buying Process –Just 8 steps to
home!
1. Choose
Your Realtor
 | Ask
your friends /family for a referral, you will need someone who you can
communicate with easily, who will listen to your needs and dreams and who
will answer all your questions.
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2. Get
Your Financing In Place
| Contact a bank or mortgage-broker to get your
pre-approval for a mortgage and arrange for interim financing if you
currently own a home. |
| Determine how much time you need to gather together
your down payment. Do you need to liquidate investments? Do you need more time to save? Will a family member be making a financial gift?
You will need the funds on deposit approximately 1 week before you
take possession of your new home. |
| Don’t forget the closing costs! You will need 1.5 – 2% of the mortgage amount for
miscellaneous costs related to the purchase: property inspection, legal
fees, tax adjustments, mortgage and appraisal fees, insurance on the home,
moving expenses, hookup of utilities, and payment of condo fees (if
applicable). |
3. Shop
for a Home
| With the help of your agent, you will decide on the
features and location for your home. Is your new home going to be a condo
– apartment style or townhouse? A 2-storey
with 4 bedrooms? What suits
your needs, lifestyle and fits in your price range? Determine your
preferences for style, size, # of bedrooms, type of yard, and garage.
What amenities do you need close by? |
| Once this information is known, your agent can
customize the search and show you homes that will be a good match. |
| When you see a home for sale that interests you –
CALL YOUR AGENT. |
| Be available to look at homes on short notice. |
4. Buy
First or Sell First – Which is Better?
| If you are a first-time homebuyer, this will not
apply to you, but don’t forget to check the terms of your lease if you
are renting! |
| If you currently own a home it will be necessary for
you to obtain a market analysis and meet with your agent to discuss
putting your home on the market. Good points exist for either approach,
but because each situation is unique, there are no ‘right’ or
‘wrong’ answers. |
Pros and Cons of Selling First
Pros - peace of mind, know "net dollar" from your sale,
focus on new home purchase, may strengthen negotiating position.
Cons - inability to purchase house before possession date, may
exceed your original purchasing budget.
5. The Offer
to Purchase
| You are now ready to buy when you see a home you like. |
| Your agent will guide you through the offer to purchase
and negotiate the terms and conditions on your behalf.
You will receive advice on market conditions, information on
comparable properties and assistance to evaluate resale potential. |
| You will need a deposit to accompany the offer to show
good faith. |
| It is customary to make your offer conditional on a
satisfactory inspection, approval of documents (in the case of condominiums)
and final approval of financing. Other terms and conditions can be added and will be
negotiated when the offer is presented. |
| The Seller has three options: agree to the offer with
no changes, make a counter offer on the price and/or any of the terms and
conditions, or, reject the offer. |
6.
Satisfying the Conditions – Inspection, Financing, Review of Documents
| When agreement to the terms and conditions is achieved
by both the buyer and the seller, you will have a certain number of days to
satisfy yourself that this is the home for you! The deposit is refundable if
you decide not to buy the property because of any of the conditions placed
on it. |
| A home inspector will inspect the home and provide a
detailed report about anything that may require upgrading, replacement or
maintenance, as well as any serious defects. |
| The bank or financial institution will finalize the
mortgage, conduct an appraisal of the property and ensure that you have
everything in place for the sale to close on the specified date. |
| Documents from the condominium association will be
provided for your review and approval. |
| Once you give final approval and the bank confirms
financing, the conditions are removed and the home is considered SOLD. |
| A second deposit is required to establish a monetary
commitment to following through with the sale. |
7. Your
Lawyer’s Role
| Your lawyer will prepare all the documents for the
transfer of title and mortgage. |
| You will need to arrange for insurance on the property. |
| Your lawyer will advise you of the exact amount of
money that is needed to close the deal or “Cash to Close”. This includes balance of down payment (amount necessary
to meet mortgage requirements minus the amount already given for the two
deposits), tax adjustments, legal fees, courier costs, photocopying and
transfer of title. This must be paid prior to obtaining possession of the
property. |
8. Getting
the Keys
| Your agent will keep in touch with you, the lawyer and
the other agent through the entire process to ensure that everything
progresses as it should. When
everything is ‘a go’, you will get the keys to your new home usually in
the early afternoon on the day of possession! |
The CityHomeTeam provides solutions
for all your Real Estate needs.
Call today - 780-458-8300
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