Friday, January 20, 2017 / by Melanie Lanteigne
Congratulations! Purchasing a home or even thinking about buying a home is an exciting adventure. You will be joining the ranks of hundreds of families who realize that home ownership offers a number of benefits including building equity, saving for the future and establishing a home your family can call their own. Your hard-earned dollars contribute to your mortgage, not a landlord's and over time your home will increase in value and the equity you earn is ultimately yours!
While your down payment and mortgage will cover the purchase price of your home, it's wise to consider the other costs & steps involved in buying a home.
Get Pre-Approved for a Mortgage
Prior to shopping for a home, it is recommended to look into getting a pre-approval on a mortgage. We suggest using a mobile broker as they can usually get you a better rate than the bank alone. If you are unsure of how to start this process, give The Biggar Team a call.
After you have received a pre-approved from your preferred mortgage lender we will begin the process by creating a personalized property search that will notify you with all the new homes on the market, before they even hit realtor.ca.
Once you have compiled a list of your favorite properties we will start scheduling showings. Buying a home is both an emotional and financial step for your future, we are here to help you make the best decision for YOU.
Now that we have found a house that is a good fit, it is time to get a little more serious.
Writing an Offer
When you have found the home you want, you will need to make a formal written offer. This is called an “offer to purchase.” This is a legally binding document which should be completed with due care and diligence. This document outlines what you, the buyer will give (a combination of price and terms) to the seller in exchange for the home. We will work together to negotiate terms that work best for you, such as purchase price, deposit, conditions to protect you (Home Inspection and Full Mortgage Approval) and Possession day.
You are now Pending!
In the short time between final acceptance and removing conditions there are a couple of steps to take. Firstly, we will send your Offer to Purchase to your mortgage lender so they can begin the mortgage approval for said property. Also make sure to ask your Mortgage specialist about your mortgage insurance options.
Next we will schedule a home inspection for the property. The cost for a home inspection is dependant on a couple of different factors but will range from $300 (condo) to $550 (house up to 2,000 sqft).
At this point you should also start looking for a lawyer who specializes in Real Estate transactions. The average cost for legal fees & related expenses will range from $1,000 - $1,800. When asking for quotes from Lawyers ensure they include all expenses (land transfer, disbursements, approximate property tax & utility adjustments as well as base legal fees) related to your deal. Your lawyer will also require an up to date Real Property Report from the Sellers to ensure accurate representation of the improvements and boundary’s of the property.
Once all the conditions have been met to your satisfaction we will complete a waiver of conditions confirming the home is now officially sold!
Depending on the possession date negotiated with the seller you will have anywhere between 30 to 90 days to get everything ready for your new home.
It is a good idea to get things organized well in advance of the closing date to reduce the stress of the move.
· Lawyers: I will send your lawyer the information about your purchase. You will need to provide the lawyer with some additional information: insurance, down payment information, fee payments, adjustment payments, and possibly other signed documents that they ask you for. You will meet with the lawyer about a week before the closing to finalize everything.
· Down Payment and Closing Costs: Make the necessary arrangements to have the funds available when the lawyer asks for it. Liquidating some assets can require some additional time.
· Movers: Whether you are using professional movers, renting a truck or getting a bunch of friends together, plan and organize it early.
· Insurance: The lawyers will need a copy of your home insurance before closing so that the financial institution will release the money to them. Call your insurance broker with the listing information. They might also want to know the age of the house, the condition of the roof, furnace, electrical system as well as other general information.
· Change of Address: It’s time to start giving out your new address to everyone. Use my checklist to make sure you have everyone covered.
· Utilities: It is important that you call the local utilities to get their services changed into your name. These include phone, internet, television, gas, electricity, water, and any rental agreements. Remember, too, to cancel the services at your old address.
If you have any questions please do not hesitate to ask, as this is simply a quick snapshot of the home buying process.
Gebran & Associates