The 10 Steps Everyone Should Follow When Buying a Home Purchasing a home is intimidating, time-consuming and expensive. But it’s also incredibly exciting! It’s so exciting, in fact, that many homeowners end up getting ahead of themselves and wishing they had slowed down to best understand the process before finalizing their commitment. While each experience is different, there are tried and true steps that you should take on this journey to minimize unpleasant surprises or simply paying more money than you needed to. 1). Get a pre-approved mortgage. A pre-approved mortgage serves numerous purposes that will all work in your favor as you shop around for your dream home: ● ●
It locks in your monthly payments for the duration of the pre-approval. Interest rates are also locked in. It lets you know how much buying power you have. Your pre-approved mortgage lender will let you know how much you qualify for, and what rates you qualify for as well. This is important knowledge to have as you browse the housing market.
A mortgage broker c an factor in other housing expenses, like heat and property tax, toward your pre-approved amount.
2). Bring in a real estate expert. A real estate agent acts as a guide on this process, helping you out by showing you homes that fit your specifications. You save a ton of time this way, as you don’t have to put in all the footwork yourself! 3). Hire a mortgage broker, if you haven’t already. Mortgage brokers know their stuff when it comes to helping their clients buy a house. They can act as a negotiator between their clients and lenders, and provide their clients with exclusive information that only they have access to. 4). Start looking at houses. Open houses are a great way to become familiar with what properties are available in your area, while giving you a visual understanding of the property ahead of time. Check out local listings, or listings provided by your agent, and bring a checklist of all of your key priorities. Do this for every home you visit and compare your findings. 5). Make an offer. So you’ve found your dream home-or as close as you can get to your dream home with the practical reality of the real estate market. Your mortgage broker or real estate agent will submit your offer to the seller, who will typically issue a counter-offer. It is through this process that a payment amount is agreed upon. It is at this point that you are obligated to follow through with the offer (providing that it is accepted) so make sure that you, your real estate agent/mortgage broker and even a lawyer look over the terms and conditions outlined in the offer agreement. 6). Finalize your pre-approved mortgage.
The lender that’s issuing your pre-approved mortgage now has to take a look at the property for the purpose of conducting an appraisal. It is at this time that the appraiser will look for issues like mold, asbestos and structural issues, to ensure that the property meets the criteria outlined in the mortgage approval agreement. 7). Close on the property. After all conditions between the lender, the seller and the new homeowner are met, it’s time to close. This is what it’s all about! And quite a lot is required to finalize your exciting new purchase. ● ● ● ●
A deposit of 3% to 5% of the home’s price must be paid. This is done via certified cheque or bank draft. The mortgage lender releases the loan to your mortgage broker. After giving your broker all of the money for related closing costs, this money will be sent to the seller’s lawyer. Your mortgage broker signs the remaining paperwork, including title and house registration in your name. The keys to your new home are placed in your hands.
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10 Steps to follow in Buying Home