Are you in the market for your very first home? If so, then congratulations! Buying a home is an exciting milestone in anyone’s life. But before you can take the plunge and sign on the dotted line, there are a few things you need to know. That’s where this guide comes in. In it, we will walk you through every step of the process, from getting pre-approved for a mortgage to getting the best deal on your new home. So whether you’re just starting to think about buying a home or are already in the thick of it, this guide is for you.
Create a Budget
If you’re thinking of buying a home, the first thing you need to do is create a budget. This will help you determine how much you can afford to spend on a new house or condo. It’s important to be realistic when creating your budget. Don’t forget to factor in things like property taxes, insurance, and maintenance costs.
It is also advisable to ensure you leave wiggle room in your budget for "life" to happen. If the past few years have taught us anything, it is that unexpected events should be, well, expected. It is better to leave a cushion in your budget to cover life's surprises than to be stuck without the funds you need.
Get Pre-Approved for a Mortgage
There is a big difference between what you know (or think) you can afford and what the bank or mortgage lender will actually approve. That’s why it is important to get pre-approved for a mortgage before you start shopping for your first home. A pre-approval will tell you exactly how much money the bank or lender is willing to lend you and what terms they are willing to offer. This is a crucial step as without it, you run the risk of finding the perfect home but not being able to secure the funds to purchase it.
Choose the Best Real Estate Agent
When it comes to any big decision, especially when first-time home buying, it only makes sense to enlist the help of a professional. With home buying, this means enlisting the help of a real estate agent. A good real estate agent can help you find homes that meet your needs and preferences while also negotiating on your behalf to get the best deal possible.
For the experience to be the best that it can be, having a realtor that you can work well with is important. Whether it be listening attentively to what your wants and needs are to responsiveness, your realtor should be able to demonstrate their willingness and ability to provide you the service that you require.
There are a few ways you can ensure you find the best realtor for the job! Start by doing research online, or ask family, friends, or co-workers for their recommendations. Ask about their personal experience and why they would recommend this specific real estate agent. Once you have a list of potentials, take time to speak with them. Inquire about their experience, relevant awards and recognitions, and more to help you make the best decision for your situation.
Start Shopping
With your mortgage pre-approval in hand and real estate agent in tow, it is time to let the fun begin! Start by browsing listings and looking at properties you may be interested in. Your real estate agent can provide valuable insight here as they have experience with the local market and can tell you which areas to focus on, things to consider when viewing homes, what prices to expect for different areas or types of houses, and more.
When it comes to first-time home buying, you may find yourself feeling overwhelmed as you search for the perfect home. When there are so many options to choose from, it can be hard to narrow down your choices and make a decision. One way to make the situation as easy as possible is by making a list of your wants and needs. By knowing exactly what it is you are in the market for, both yourself and your realtor can quickly rule out options that will just not suit your needs. It is also helpful to have a list of things you will absolutely not negotiate on and things that you are willing to do without if the right house were to come along. For example, features such as pools, which can always be added to a property, may be nice to have, but would also not be a deal breaker.
Submit an Offer
When you've found the house of your dreams, it's time to submit an offer and start the negotiation process. This can be a nerve-wracking experience, but with a little preparation, it can be smooth sailing.
In order to submit an offer that has the best chance of being accepted, you'll need to do some homework. Firstly, make sure you have a firm idea of what the property is worth and what you're willing to pay for it. Your real estate agent will help with this process, guiding you through everything from the amount you should offer to any contingencies (conditions that must be met for the sale to go through) that may be included in your contract.
If the seller accepts your offer, congratulations! You've just started on the road to homeownership. If they don't accept it outright, don't worry - this is where negotiations begin. Your agent will work with both parties to try and reach an agreement that everyone is happy with.
Get a Home Inspection
Once you have done the hard work of finding the perfect home and negotiating a great price, it is time to do some due diligence by getting a thorough home inspection. This will help ensure that any potential issues are identified before they become major problems.
A home inspector will look at things like the condition of the roof, any existing pests or water damage, the potential for mold and other health hazards, and more. They will then provide you with a detailed report outlining their findings so that you can make an informed decision about whether or not to proceed with purchasing the property.
While home inspections are becoming less and less popular, you will want to make sure that you fully understand what you are passing up on if you choose not to include it as a condition. You will also want to make sure that, though not generally the case, your mortgage lender isn't requiring one as a condition of funding.
Sign Paperwork with your Lawyer
As the closing date for your new home rapidly approaches, you will need to meet with your lawyer to sign all of the mortgage and purchase documents. This is a critical step in the process, so it is important to make sure that everything is in order and that there are no surprises.
Your lawyer will go over all of the documents with you and answer any questions you may have. They will also work with the real estate agent and the seller's lawyer to make sure that all of the paperwork goes through smoothly and that there are no problems.
At this time you will also have to provide your lawyer with information such as your home insurance company. You will also need to submit all relevant paperwork for your mortgage and potentially the certified cheque in the down payment amount.
Take Possession of Your New Home
The final step, and arguably the most exciting, is taking ownership of your new home! On the day of closing, it is common that the keys are not released until the afternoon. While it is hard to wait, it is important to give your lawyer and mortgage lender time to do all the behind-the-scenes work. From your mortgage being funded to the lawyer transferring the amount due on purchase to the vendor's representation, there are a number of steps to be taken before the final transfer is registered. Once everything has been finalized with the Land Registry Office, the house is officially yours and your lawyer will invite you to come and collect your keys!
Closing on your new home can be an exciting but nerve-wracking experience, but with careful planning and a good team in place, it can be a smooth process from start to finish. With a thorough budget, an understanding of the market, and good advice from your real estate team you can find the perfect home for you!
As a Realtor®, it’s important that I undertake the detailed research that’s required to represent your home or help you find a new one. Everyone wants a smooth transaction! To ensure one, that includes advising accordingly, negotiating fiercely on your behalf, and empowering you with as much information as possible so you can make an informed decision about selling your home or condo, and buying the next perfect place.
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