7 Crucial Steps in Buying a Home
Friday Oct 16th, 2020
Buying a house is an emotional journey that you would be embarking on at least once in your life. It is an emotional journey because the property either becomes a home for your family, turns to be a sound investment or a means to downsize or upsize your abode. Not only that, a house can greatly influence your financial and familial life for years to come.
It is important to refresh and or learn the basics of buying a house to help you create an informed and realistic decision about the biggest transactions in your life. This article aims to create a concise 8-item list of the process of buying a house.
1. Evaluate yourself
The first step is to make sure you are ready for the responsibilities of purchasing a house. This includes checking your finances are ready to take on mortgages, closing costs, moving costs, and maintenance. You have to consider your lifestyle and make sure that is included in your list of criteria. Get documents prepared for possible requirements - tax forms, void cheque, assets & liability inventory list, etc.
Save more than the usual 5% usual down payment for the first $500,000- $1,000,000 worth of a house. If you put down a bigger deposit it can have lots of long-term advantages. It can allow you to have more equity in your home, lowered monthly mortgages, less interest to be paid, and smaller mortgage default premiums.
Be resourceful in getting a bigger deposit by asking for extra funding as a family gift, and looking into possible rebates and credits available if you are a first time home buyer as well. Stick with your budget with contingencies and stick with it so you can easily narrow down your options on your house hunt.
2. Partner with the right real estate professional
Seek out real estate professional advice when organizing your detailed plan. They can help you from getting your mortgage pre-approval, pre-selections, viewings, and negotiations. Expect to encounter lots of jargon in the whole process and a licensed real estate agent can guide you through the murky waters. Ask for references for mortgage lenders that have good rates of interest and ask their opinion on which one is best to move forward with.
Giving your chosen realtor a must-have list in finding you a house can make it easy for them to procure a list of pre-selected listings that you can choose from. With the pandemic in mind, they can recommend creative ways of attending viewings or tours of your properties of interest to keep you safe.
3. Research and home hunting
The easiest way to hone down on your ideal house to purchase is going back to your must-have list and comparing them to the current real estate market activity. Knowing what matters to you most can make more quality options. Allow your realtor to help you go through your shortlist and work with them in going to viewings. Never be afraid to discuss the pros and cons of the shortlisted properties you both reviewed. Keep an open mind and try to incorporate fun in house hunting.
4. Making an offer and always include a home inspection phrase
Always read the whole Agreement of Purchase and Sale document before sending off any offer. If you have any doubts or a phrase you are not familiar with, talk to your realtor. Consult with them about including a home inspection to seal the final deal. Having a home inspector go through a property of interest can let you know what needs work or potential issues with a house. Let them make it simpler for you to understand complex details. Remember to always stick to your budget and work out some negotiations along the way with the results from the home inspection completed.
5. Closing the deal
Make sure you comply with the buyer obligations during the closing period of usually 90 days, depending on the agreement of purchase. Once the offer has been accepted by the home seller, the home buyer has about 10 days ‘cooling-off’ period to complete the financing, home inspection, and everything else prior to finalizing the deal.
Provide the offer documents to your mortgage lender and once the document is in order with your adjustments included, your realtor will seal the deal along with your lawyer to finalize the paperwork with the mortgage lender documents. All of these closing essentials will then lead to a designated real date of a closing or final date of actual legal possession of the house.
6. New address and moving
During your closing period, you can also begin the process of changing your address to the new house location before the agreed closing date so you do not miss any subscriptions, delivery, or mails. This includes your work, government agencies, and bills. Family and friends can be notified using emails or change of address cards or sign up for mail forwarding services from Canada Post.
7. Moving preparations
Moving in has lots of preparation. You can begin the moving checklist even way before you have done your home hunting so you can have ample time to prepare yourself and estimate your moving day time and resources. Do not ask to ask for moving companies' references from your realtor, friends, and family and follow some of the tips about moving.
Buying a house can mean a lot although differently for potential buyers or investors. Knowing the basic crucial process can help in making you make the final decision of purchasing your new home. Happy house hunting! If you need real estate help, let us talk!