Steps to Buying a Home
Analyze Your Needs & Affordability
Congratulations on your decision to purchase a new home! Your first step toward buying your new home will be to analyze your needs. By analyzing your needs you will be able to get a clear picture of exactly what you want your new home to look like and how it should function for you.
Firstly, determine why you are looking for a new home. For example, are you currently renting and would like to have a home where you can begin building equity? Have you married and outgrown your current residence? Have your children moved out and you need to downsize? These factors will all have a bearing on how you approach your home search.
Secondly, establish a time frame for buying your home. Depending on your reasons for wanting a new home and the current state of our market, you should be able to come up with a rough timeline.
Lastly, you most likely have a mental picture of what you would like your house to look like and what features it should have. Make a list describing your dream home and/or list the features that are an absolute ‘must have’ in order to buy it. It is likely that you will end up blended result as you progress through the buying process. This is a natural and evolutionary process as you get clearer about what you want and what is available.
We save you time and money by putting our expertise to work for you. We will be able to help you organize your wants and needs and then assist you in realizing your home purchase.
Affordability
You are going to need to know in what price range to look by getting pre-qualified or pre-approved for a mortgage.
There are some key differences between pre-qualification and preapproval for a loan that you need to be aware of. Loan pre-qualification is a simple process. It takes into account very basic information regarding your financial status and gives you an amount for which you may qualify. Whereas a pre-approved buyer is actually approved for a loan of a certain amount.
Preapproval is a much more involved process. The lender will take all pertinent information regarding your finances and perform an extensive check on your current financial status. This will ultimately give you the exact amount that you will be eligible for. Being pre-approved lets the seller know that you have gone through an extensive financial background check and there should be no unexpected obstacles to buying the home.
The type of mortgage you apply for will depend on many factors, but the majority of that decision will be based on your ability to pay a monthly installment. If you can only afford a $1000/month payment, you are not going to buy a $250,000 home, unless you have a large sum of money to make as a down payment. As a general rule, financial planners say that you shouldn't pay more than 28% of your gross income for housing (that includes principal, interest, taxes, and insurance).
Once you have determined what you can afford, the next step is to choose a suitable mortgage plan. There are many different types of mortgages available, so take some time and explore all of the possible plans for which you qualify. You could save yourself thousands of dollars in the long run.
We save you time and money by being your professional guide through the loan process. We can recommend a qualified representative to counsel you on the advantages and disadvantages of certain types of loans and help you understand the "real" cost of a mortgage. We will also act as your personal advocate and liaison between you and the lender as you proceed through the approval process and closing by working with your lender on a regular basis.
Neighbourhood & Home Search
You’re not just buying a home, you’re buying the neighbourhood the home is in. Determine what type of neighbourhood you would like to live in. Consider how living in the neighbourhood will effect your drive time to and from work, what parks/amenities are offered, what school district you will be in and how close the schools are.
We save you time and money by taking the information from your list of needs and wants for your home, your preapproval amount, and your list of needs and wants for the neighbourhood and incorporating them into a specific search profile. Our extensive experience in the local market will be an invaluable resource during this step.
Search for Your Home
There are a few ways to go about doing this. You can access local publications highlighting available real estate in the area, look on the Internet, and you can even drive through neighbourhoods that you feel would meet your needs. Driving around a particular area looking for a home that is for sale is good because you can actually see the house, but it can be very time consuming and very "hit or miss."
We save you time and money by keeping you up-to-date with all the available properties, and all new properties on a daily basis, that possibly meet your criteria. You can eliminate the haphazard searching through papers, property catalogues, and the Internet, and let us filter all the listings that meet your specific search profile and deliver them to you through us directly, whether by a phone call, email, etc.. When you’ve found any of these potential homes of interest, we can arrange for you to walk through the properties when it is convenient for you.
Make An Offer & Negotiate
When you have found the home you would like to purchase, it's time to make an offer. Taking into account the recent sales of homes in that neighbourhood which are similar in size, quality, conveniences, and amenities, what are you willing to pay for the home?
We make sure that you have everything down in written form... no verbal agreements. We present the seller with a written document detailing what needs to be done by both parties to execute the transaction. The contract should protect the best interests of all parties involved and should be comprehensive in nature. Once it is accepted by the seller, it may be too late to make any changes, so we make sure to review your offer thoroughly before submitting it. The contract, though not limited to this list, should include the following:
A legal description of the property
Parties to the contract
Offering price
Financing arrangements
Home inspection clause
Amount of the deposit
Title Search & Property Disclosure - a list of inclusions (appliances & furnishings) which will stay with the home Completion,
Possession & Adjustment dates
Any relevant contingencies
We save you time and money by making sure that your contract meets all the legal requirements according to local and national guidelines. We are able to expertly advise you on how to create an offer that will have the best chance of being accepted. Also, we will ensure your financial position as a buyer, by including any necessary contingencies which would protect you if a particular requirement is not met.
Negotiations
Once your offer is made there may need to be some negotiating in order to reach an agreement. This can give you a great deal of leverage in the buying process, that is, if you have adequate information and you use it in an appropriate manner. Some of the things that you may have to negotiate on are:
The price
Deposit
Repairs that need to be done
Appliances and fixtures
Completion and Occupancy time frame
The key to successful negotiating is keeping in mind that the end result must make both you, the buyer, and the seller happy. Otherwise, negative feelings will persist throughout the remainder of the process and someone may walk away feeling they were treated unfairly.
We save you time and money by representing your best interests and negotiating on your behalf. We give you the knowledge and expertise necessary to make sure that your offer is accepted at the best price and terms possible for you.
Satisfying Your Offer & Conveyancing
After your offer has been accepted, the property will need a thorough examination. Working with your lender, you may need to have a formal appraisal and a survey done for the property designated in the contract. A property inspection, a foundation inspection, and an environmental inspection may also need to be completed to make sure that the property is up to the standards set forth in your written agreement. If there are issues or inconsistencies brought to light during this time, it may delay or even nullify the contract depending on the contingencies set forth in the contract. Having these procedures done in a timely and professional manner is a must.
We save you time and money by supervising the coordination of all necessary conditions and serving as your advocate when working with each. We will make sure that the vendors have access to the property at the appropriate times to perform their procedures and oversee the execution of those procedures on your behalf. Our experience in this area will be invaluable in making sure that everything is completed on time and in a professional and legal manner.
Conveyancing
As the completion date draws near you will need to be in contact with a lawyer or notary and your lender. We will make sure that all the necessary documents are being prepared. We will also confirm that the documents will be delivered to the correct location so they can be reviewed and that they will be ready on the appropriate date. You will designate a form of payment you will need to bring to the closing for any unpaid fees.
Homeowner insurance is another very important item that will need to be taken care of at this point. Insurance experts recommend that you obtain insurance equal to the full replacement value of the home. Unless you have insurance coverage on the home, the closing can not proceed.
We save you time and money by coordinating the necessary documentation for your closing. We work with your lawyer or notary, and lender as your consultant to insure thoroughness, accuracy, and timeliness. Making sure that each document is ready and available will enable you to have a quick, easy closing.
Completion & Possession
The completion date is where ownership of the home is legally transferred from the seller to the buyer. It is a formal process in which most parties involved in the buying/selling process will attend independently. Closing procedures are usually held at the lawyer's office. Your lawyer coordinates the document signing and the collection and disbursement of funds.
In order for the closing to go smoothly, each party involved should bring the necessary documentation and be prepared to pay any related fees (closing costs).
We save you time and money by answering any questions or helping to resolve any issues that may come up. We will also be available to manage any last minute or unexpected details that arise.
Possession
Congratulation on the purchase of your new home! Now that you have taken ownership of the property you will need to have your local services such as electricity, cable, and phone set up.
We save you time and money by helping you coordinate the set-up of these local services. We also obtain and deliver to you the keys for your new home!
Post Closing: Hoping that you’re settling into and enjoying your new home, we offer a complimentary Handyman Service to help with the little things, we keep in touch with you on a regular basis to keep you informed on your investment, offer helpful home related tips and informative Newsletters.
We trust that this was your best real estate experience ever and that we’ve over-delivered on our ‘Customer for Life’ philosophy.