For some the home buying process can be a stressful one for many people, but it doesn't have to be. Read up on the following and inform yourself of the process and programs that can make your next move a smooth one.
The Home Buying Process:
1. Sit down with a Real Estate Agent. Looking online is a nice place to start, but when you want to get serious about buying you will want to havave a professional Buyer's Representative on your side. Not only will they help in your search, but they will be there through out the entire process to advise and answer any questions you make have. If you haven't sat down with one set up an appointment with a local agent by clicking here.
2. Get a pre-approval: Your new Real Estate Agent will be able to direct you to a Mortgage Professional that will provide service and rates that are typically worlds apart from what you will find by walking into your local bank. The pre-approval lets you know how much you can afford to spend on your new home. You would hate to find your dream home only to find that it is $20,000 our of your price range!
3. See some homes: The only way to get a feel for homes is to go out and view some that are in your price range. This will help you get to know the areas you are interested in, the style of home you prefer, and what is really important in your next home. See a cross section of homes, then narrow the search and focus on what you really want the next time out.
4. Make the offer: You've seen a number of homes and you're ready to persue one. Great! The process usually moves quite quickly from here. You will sit down with your Agent, discuss the home and the inital offering price as well as when you would like to move in, what you want to ask the sellers to leave, and what clauses you should add to the offer to make sure you are protected from anything going wrong. In the majority of cases you will want to make sure your offer is conditional on your final financing approval and a home inspection. When the offer has been negotiated and accepted by both sides you will submit a deposit cheque to "hold" the property while it is conditional. Your real estate agent will discuss this with you as you write up the initial offer.
5. Final financing approval: You've already had a pre-approval, but now that you've made a conditionally offer you typcially have a week to make sure you have your final approval from the bank to buy this home. There are rarely problems when you've been pre-approved, but this protects you if there are. Have your agent fax the offer to your Mortgage Professional and make sure you've given him any paperwork, pay stubs, or work letters he may have asked for. If for some reason you do not get your final financing you can be released from the deal and you will get your deposit cheque back.
6. The Home Inspection: We recommend a home inspection on any home you purchase, from 1 to 100 years old. You will spend a few hours getting to know your new home and get a feel for the little projects you're going to have over the first year. There is no perfect home and you should expect to spend up to 1% of the price of the home in repairs and upgrades. If there are major problems with the home you are protected by this condition and still have the right to walk away from the deal. Speak to your agent for more information on this.
7. Waiving the conditions: Assuming you get your final financing wrapped up and the inspection goes well you will sign paperwork with your agent to waive these conditions. Once this is done you have a firm deal and the sold sign goes on the property and you're just have to wait to the closing date to move in!
8. The Lawyer: Now its time for the lawyer to get involved. Your agent should forward all required paperwork to the lawyer you choose and he will facilitate the transfer of the proerty to you as the new owner. You will meet with the lawyer before closing to sign more paperwork and when the closing date arrive, the funds and title are transfered and you can finally pick up the keys from your lawyer. Now its officially your house!
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