Is it Time to Buy?
Congratulations! Thinking of, or actually buying a home is an exciting and complex adventure. Thousands of Canadian families have realized that home ownership offers a tremendous number of benefits. Including, building equity, saving for the future, a stepping stone for a future home upgrade. Or just owning a home your family can call their own and grow up in. Your hard-earned dollars contribute to your mortgage and your potential financial freedom, not a landlord's. Over time your home may increase in value and the equity you earn is ultimately yours!
In this simple breakdown of steps, I will briefly take you through the process, to help you answer your questions, and to make your home buying experience as pleasant as possible.
Your First Step
Is to determine why you want to buy and what type of home you want to purchase. Are you looking for a Starter home as a stepping stone to move up? Or, are you looking for a home to raise a large family? You need to be specific.
Needs vs Wants
Just like a grocery list, we all have needs and wants. Develop your own list of needs and wants in your new home. This doesn’t mean you cannot have what you want in your home, but rather, that you have a priority list of the most important features. You may not be able to obtain all the “want” items on your list, within your budget. You may have to compromise on a few items to stay in line with your budget. You can always upgrade to granite countertops, but you may not be able to add that extra bedroom.
I’ve always said, one of your best allies when purchasing a home is your local Mortgage Broker. Mortgage Brokers shop around for the best rate that fits your goals and needs. Pre-Approval takes typically 15 minutes and it is really just a lenders determination of how much money you will be able to borrow. Once pre approval is done, you will know exactly what you can afford. Sellers are more likely to accept an offer from a pre-qualified buyer. If there are errors on your credit report, we can take steps to resolve them right away.
Choosing a home is both an emotional and a financial decision for your future. By making the most out of your home viewing experience, you can learn how you can avoid costly errors that could lead to future problems. Remember that all important Need VS Wants list? A common mistake during the home search, is looking at homes that are outside you search criteria and financial boundaries. This only leads to one thing, Heartache. We always want what we can’t have, so save yourself the sorrow and don’t view homes outside your limits. I will walk beside you in this to keep us all on track.
Making the Offer
Once we have found the home you want to purchase, we need to make a presentation to the seller, called an OFFER TO PURCHASE. This is a legal offer that needs to be carefully drafted up by a real estate expert or a Lawyer. This offer will include the Price, Dates and any other terms or conditions you the purchaser want in the contract.
The Negotiating process can seem like a rollercoaster at times – exciting but stressful. Stay close to the phone! Making an offer, receiving a counter offer and revisiting it again, are not uncommon. It often lasts until the wee hours of the morning. It’s all part of the process of making the deal work for both you and the seller, and in the end everyone wins. Once the Seller has agreed to the terms of the offer/counter offer, you will have what is called an Accepted Conditional Offer.
You typically have a week to remove all conditions to the offer. So we get busy looking after every detail. Once all of the conditions and inquires about the property have been satisfied, we will remove the conditions by AMENDING THE CONTRACT. At this time, you will pay the agreed deposit by way of certified cheque or bank draft, and you are one step closer to owning your dream home! We then forward all documents to your lawyer/Notary of choice and we wait for the closing and possession dates to arrive.