Congratulations! Purchasing a home or even thinking about buying a home is an exciting adventure. You will be joining the ranks of hundreds of families who have realized that home ownership offers a number of benefits. The benefits include building equity, saving for the future and establishing a home your family can call their own. Your hard-earned dollars contribute to your mortgage, not a landlord’s pocket. Over time your home will increase in value and the equity you earn is ultimately yours! While your down payment and mortgage will cover the purchase price of your home, it’s wise to consider the other costs and steps involved in the home buying process.
Get Pre-Approved for a Mortgage: Prior to shopping for a home, it is recommended that you begin the home buying process by getting a mortgage pre-approval. If you are unsure of how to start this process, give The Biggar Team a call. After you have received a mortgage pre-approval from your preferred mortgage lender, we will create a personalized property search. This will notify you of the new homes on the market before they even hit realtor.ca.
Viewing Homes: Once you have compiled a list of your favourite properties, we will start scheduling showings. Buying a home is both an emotional and financial step for your future; we are here to help you make the best decision for YOU.
Now that we have found a house that is a good fit for you, it is time to get a little more serious.
Writing an Offer: When you find the home you want, you will need to make a formal written offer. This is called an “offer to purchase”. The offer to purchase is a legally binding document which should be completed with due care and diligence. This document outlines what you, the buyer, will give (a combination of price and terms) to the seller in exchange for the home. We will work together to negotiate terms that work best for you, such as purchase price, deposit, conditions to protect you (home inspection and full mortgage approval) and possession date.
You are now Pending: In the short time between final acceptance and removing conditions there are a few steps to take. Firstly, we will send the offer to purchase to your mortgage lender so they can begin the mortgage approval. Make sure to ask about your mortgage insurance options.
Next, we will schedule a home inspection for the property. The cost for a home inspection is dependent on a couple of different factors. It will range from $300 (condo) to $550 (house up to 2,000 sqft).
At this point, you should also start looking for a lawyer who specializes in real estate transactions. The average cost for legal fees and related expenses will range from $1,000 – $1,800. When asking for quotes from lawyers, ensure they include all of the expenses (land transfer, disbursements, approximate property tax and utility adjustments, as well as base legal fees) related to your deal. Your lawyer will also require an up-to-date Real Property Report from the sellers. This will ensure an accurate representation of the improvements and boundaries for the property.
Removing Conditions: Once all the conditions have been met to your satisfaction, a waiver of conditions will be completed confirming the home is now officially sold!
Depending on the possession date negotiated with the seller, you will have anywhere between 30 to 90 days to get everything ready for your new home.
It is a good idea to get everything organized well in advance of the closing date. This will reduce the stress of moving and make the home buying process go smoothly.
- Lawyers: The real estate agent will send your lawyer information about your purchase. You will need to provide the lawyer with some additional information: insurance, down payment information, fee payments, adjustment payments and possibly other signed documents that they ask for. You will meet with the lawyer about a week before the closing to finalize everything.
- Down Payment and Closing Costs: Make the necessary arrangements to have the funds available when the lawyer asks for them. Liquidating some assets can require some additional time.
- Movers: Whether you are using professional movers, renting a truck or getting a bunch of friends together, plan and organize early.
- Insurance: The lawyers will need a copy of your home insurance policy before closing. Call your insurance broker with the listing information. They may also want to know the age of the house, the condition of the roof, furnace, the electrical system as well as other general information.
- Change of Address: It’s time to start giving out your new address to everyone. Use a checklist to make sure you have everything covered.
- Utilities: It is important to call local utility companies to get the new home’s services changed into your name. These include phone, internet, television, gas, electricity, water and any rental agreements. Remember to cancel the services at your old address.
If you have any questions please do not hesitate to ask. This is simply a quick snapshot of the home buying process.
This post is courtesy of Gebran & Associates, Realty Executives Polaris. Contact 780-906-9959 http://www.edsellshomes.ca/