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This section is designed to help you plan and organize the purchase of your next home and to remove some of the mystery and anxiety from the process.
Buying a home can be one of the most exciting and rewarding things you ever do, or it can be one of your biggest nightmares. Your experience depends entirely on how well prepared you are and how knowledgeable your real estate consultants are. Your experience will be more enjoyable and effective if you can answer some following questions before you begin:
step 1 > Analyze what you want One of the biggest mistakes buyers make is to go into the market without a clear understanding of their needs, wants and financial capability. The first step should be one of self-analysis. Start with a wish list. Rank the features you want in order of priority. Consider things such as:
step 2 > See what you can afford You will want to meet with a mortgage lender as soon as possible in the process, to make sure you understand every aspect of the loan process. One of the best strategies we can offer is to get yourself pre-approved for mortgage financing. It is simple to do and can save you time and money in the negotiating process. Most lenders will approve you for an amount of loan before you have selected the actual property. Your mortgage will be approved "pending a property appraisal". Pre-approval makes you more comfortable knowing that when you find a home that suits your needs, you are able to arrange financing . The seller is also more likely to deal seriously with you on the sale if he or she knows that you are qualified to finance the purchase. You should leave your meeting with a clear understanding of:
This is probably the most important step in the process. You will need to find a professional you like and trust. You will be confiding in him or her on a business and personal level. The realtor can make the process pleasant and rewarding or frustrating and disappointing. They are key to your finding what you want in the right area, at the right price. Be selective, look for someone you feel comfortable with and who is experienced and knowledgeable. Don't be afraid to ask for references. Once you find someone you feel confident with, sign them up as a Buyer's Agent. It is important that the person you're working with is representing your interests exclusively. Read what others are saying about Shannon & Glenda>>> step 4 > Consult with your Realtor The next important step in the process, is a meeting with your Realtor to prepare each other for exactly what to expect along the way. The following are the points that should be covered and fully understood in this meeting: Your needs and expectations. What accommodations are you looking for (bedrooms, baths, etc.), in what areas, in what price range and in what time frame. How often you are available to look and what you expect from your agent in terms of availability & communication (e-mail, phone - daily, weekly). Your agent should give you copies of all the paperwork you will be expected to sign throughout the process and brief explanation of each. Your agent should explain Buyer Agency and why you should sign a Buyer's Agency Agreement. Step 5 > Select a Mortgage Lender No matter what service or product we buy, the advice in consumer reports is. "SHOP AROUND" to get the best deal! Millions of Canadians don't shop around for their mortgage and therefore pay thousands of extra dollars in unnecessary interest. The bank's loans officers represent only their own company. They have no legal obligation to get you the best product or rate. The best way to shop around is to choose a mortgage broker that will do the shopping for you. Through their lender database they can instantly comparison-shop all the available lenders in Canada. Experienced brokers will "package" your mortgage application to sell all your strong points to ensure you get the best rates and terms. Most brokers are paid by the lender that your mortgage is placed with and there are no fees on traditional mortgages (broker/lender fees may apply on nontraditional mortgages only). More info >>> step 6 > Look at Properties This is the fun part! It is important to limit the number of homes you visit in a day. If you tour too many, they begin to run together and you can't remember one from another. It's a good idea to record notes about each property on an information sheet and immediately eliminate ones that don't suit your needs. Remember, feedback to your Realtor is crucial. It's important to let your Realtor know which houses you like and why as well as which houses you don't like and why. Open communication will allow your Realtor to choose only properties that will be of interest you. Step 7 > Select Your Home Once you have located a home that you really like, your Realtor will do whatever research is necessary to help you make your ultimate buying decision. This will consist of a Comparative Market Analysis, which determines "fair market value" by reporting on recent sales of similar properties in the chosen neighbourhood or area. Step 8 > Offer and Negotiate When making an offer on your selected property you will have to decide:
Once your offer has been presented, the seller will either accept it, reject it, or make a counter offer. It is important for all parties to focus on their real goals through this process. step 9 > Satisfy Conditions If, as part of your offer, you asked for time to arrange certain things, you have what is called a conditional agreement. Offers can be conditional on mortgage approval, inspections, the receipt of acceptable homeowners or condo association documentation, the sale of property and many other things. It is important that all deadlines be met and that all conditions are removed exactly the way the agreement specifies. Your realtor is responsible for ensuring that these procedures are done correctly. step 10 > Select a Lawyer Your lawyer will take care of all necessary legal procedures to implement your Contract of Purchase and Sale. The lawyer conducts a title search and prepares all necessary documentation - certificate of title, charges, discharges registrations etc. - in order to complete the sale. step 11 > Close Your Purchase Several days prior to closing day you will meet with your lawyer to sign the documentation required to complete the sale. Your lawyer will explain every document to you in a satisfactory manner. Do not ever feel intimidated. If you do not understand something - ask! You should understand everything about the legal aspects of home ownership. You will also have to provide funds for whatever down payment and closing costs that you are expected to pay. You will likely be required to certify your cheque. step 12 > Move to Your New Home This is the last and probably the hardest step in the home buying process! A little bit of planning and forethought, though, will make for a much smoother move. You will want to make arrangements with a moving company as soon as you can. Call at least two, to get competitive quotes. A representative will usually come to your home to analyze the weight and complexity of the physical move. Be sure to change your address with the post office, your banks and any other correspondents at least 30 days in advance. To avoid late payments, it's a good idea to actually call and verify receipt of the address change whenever possible. Call to order your utility hook ups approximately ten days prior to your move. By following these twelve steps, acquiring a new home should be a smooth and satisfying process. |
