Buying your home is a very important decison that is best made when you are well informed, and have someone with experience in the industry guiding you. The process of buying Real Estate in Canada is a regulated process, meaning that it follows a specific format and that you will be protected throughout by the rules governing the process and the actions of those involved in it. This is why it is best that you work with a Real Estate Agent who can make sure that every step is completed properly, and who understands your needs in order to assure the best results for you.
THE BUYING PROCESS IN 6 STEPS
Assess Your Readiness To Buy A Home
Before you start looking for the home of your dreams, there are some aspects that need to be considered:
- Your work History
- Your credit History
- Money saved, is it enought for a downpayemnt and closing costs?
- How much can you afford? Lenders have legal limits on how much money they can lend you, so you need to have a good understanding of where your dream home fits within those limits. The amount a lender can lend for a mortgage depends on how much you earn and how much you spend each month.
In this phase of the process it is recommended to prequalify for a mortgage, this way you know the price range you can look and makes for a stress-free process.
Luma can prequalify you for a mortgage and help you start your process!
Define Your Wants & Needs And Begin Your Home Search
During this phase, you start navigating the housing market and finding homes that may be right for you. It is recommended that you create a list of important criteria for you and your family and get experienced with the current market. Your list should include, criteria for Deal-breakers, Wish-list, and must-haves. You can start looking online at listings, drive by the areas you are interested, and consult with your Real Estate Agent.
In this phase it is important that you research the neighbourhood you are interested; visit schools and read reports, drive around the area, and get a feeling of its atmosphere, test out the transportation, find grocery stores, medical services, and any other facilities you need.
Go Out There! And Find Your Dream Home With Luma
If you are ready to find your dream home, I am ready!
Once you have your wants & needs defined, it is time to go out there and look at possible homes. Luma will setup appointments to see the houses you want and will recommend houses in neighbourhoods that match your criteria, while guiding you throughout the home selection process, until you find the home of your dreams!
There are also numerous elements of real estate that you may not be aware of including inspections, appraisals, and financing for repairs. A real estate agent can provide you with valuable guidance for whatever you are looking to do since he or she has been trained and is licensed to address all of your questions and concerns that you need to deal with.
When you find a buyer, real estate agents provide a great amount of help with the negotiations prior to the close on the sale. Without an agent, you’ll face a lot of paperwork, but with an agent, they will do everything for you.
Choosing an agent would be the best choice you could make when you want to buy or sell your home. An agent will relieve stress from your shoulders and you’ll have more time and money to do other things.
Make An Offer To Purchase Your Dream Home!
After you have searched different properties, and finally find the home you love! you are ready to make a financial offer to purchase to the seller – via your Real Estate Agent. Negotiations proceed until a purchase price is agreed upon between you and the seller, at which point both parties sign the ‘Offer to Purchase’ – also known as ‘Agreement of Purchase & Sale’. This is a preliminary contract and it is either ‘firm’ or ‘conditional’. Your deposit will be required when signing the Offer to Purchase, and the contract will contain your completion date. When the completion date is reached and all conditions for the fulfilment of the contract have been met, the remainder of the purchase price together with all fees will be payable. When making an ‘Offer to Purchase’ and during the negotiations, there are many factors you need to take into consideration, such as; the real estate market value of the house, in comparison to similar houses, the seller’s price and position, additional conditions you want to add, and how to handle counter offers.
Luma’s experience in negotiation and the real estate market can help you get your dream home, the best way that benefits you.
Luma’s Key Point: It is very important to perform a home inspection before closing the deal and add it as a conditinal to your offer. Qualified Home inspectors are trained to find any possible issues that you might encounter later on. Inspectors check for structural problems, water, interior environmental hazards, plumbing and electrical systems, and the outside, among other things. Problems found can be agreed upon with the seller to get them solved before the closing or reduce the cost of fixing from the final value. It is very important that this inspection is conducted by a reputable Home Inspector. Luma can provide you with a list of certified Home Inspectors in the area.
Finalize Your Purchase.
Finalize Your Purchase.
Once your Offer to Purchase has been accepted, it is time to finalize your mortgage loan, even if you are prequalified, your lender will verify (and update, if necessary) your financial information and put together what’s needed to complete the mortgage application.
Luma’s Key Point: If you are using a mortgage to purchase your home it is essential to have this noted as one of the conditions, because if you fail to secure your mortgage and the contract falls through you will want your deposit back! A firm preliminary contract is not subject to any terms or conditions, if it is broken by the buyer they lose their deposit, if it is broken by the seller they may be subject to a financial penalty.
Get Your Dream Home! – Closing Day
Closing day is the day when you finally take legal possession and get to call the house your home. The final signing usually happens at the lawyer or notary’s office.
These are the things that happen on closing day:
- Your lender will give the mortgage money to your lawyer/notary.
- You must give the down payment (minus the deposit) to your lawyer/notary. You must also give the remaining closing costs.
- Your lawyer/notary: Pays the vendor, Registers the home in your name and Gives you the deed and the keys to your new home.