The Home Buying Process

Step 1: Pre-qualification

Once you have decided that buying a home is right for you it is wise to get pre-qualified for a mortgage. Pre-qualification will give you an idea of how much of a mortgage you can qualify for; this is useful because it indicates to Realtor that you are serious about buying and it also gives them a price range within which they can find suitable properties. Many buyers who do not get pre-qualified have been disappointed because they find their dream home only to discover that they can not afford it.

Step 2: House Hunting

Once you know your price range, you then need to enlist the services of a Realtor; if you Contact Me i will be happy to recommend a trusted Realtor to you. Your Realtor will then begin researching the available properties that fit your criteria and will arrange viewings for you of the listings that appeal to you. Having the expert advice of an experienced Realtor will be a huge asset through the house hunting process and will help educate you on issues such as leaky condos.

Step 3: Offer In and Accepted

Once you’ve found your dream home, you will make an offer, subject to financing. Your offer may also have other subjects, such as subject to a satisfactory home inspection or subject to review of the strata minutes. Once the offer is accepted, you will provide a copy of the purchase agreement to your mortgage broker.

Step 4: Lender, Insurer, Appraisal

Your mortgage broker will then work with the lender, insurer, and appraiser to get you final approval for your mortgage. Your mortgage broker may ask you for further documentation at this time. You will want to collect the requested paperwork and submit it to your mortgage broker in a timely fashion.

Step 5: Firm Sale

Once you have met all your financing conditions, your mortgage broker will instruct you to remove the subject(s) to financing. This is done with your Realtor. You may remove other subjects at the same time, such as “subject to a satisfactory home inspection”. Once all the conditions are off, you have a “firm sale”.  Instructions from the lender will be sent to your notary/lawyer’s office at that time.

Step 6: Moving Details

Your notary/ lawyer is now receiving and preparing mortgage documents. You will want to use this time to start preparing for the move.

Step 7: Lawyer/Notary

Your lawyer/notary will call you into sign the required legal documentation, usually about 3-4 days prior to the completion date. The completion date is the day that the money is given to the sellers and the property is transferred to your name.

Step 8: Move In

Usually your possession date will be the day after the completion date.  This is the day that you receive keys and can move into your new home.

Step 9: First Mortgage Payment

Unlike with rent, you pay your mortgage at the end of the month. (If the purchase of your home was completed on June 1, and you chose monthly payments, you will not have a mortgage payment until July 1. If you chose weekly payments, the payments would come out at the end of every week.) You will receive the details of the mortgage repayment from your mortgage lender.

Check out 6 Simple Steps to a Smooth Home Purchase and other useful tips in my blog.