The Buying Process

Determine Your Wants and Needs

Once you’ve decided that you want to buy a home, the first thing that you should do is determine your needs and wants for your property. You will need to consider such things as the number of bedrooms, the length of time you plan on living in your new home, the available parking, the desired location, etc. You should think about everything that you will need and want in a home. You may also want to list your “absolutely not” features.

In a buyers market, you may be able to find exactly what you’re looking for in reasonable amount of time. However, in a sellers market, your selection will be limited and it may take a long time to find the property that you are looking for. The best thing you can do is know your market and be prepared for what it has to offer.

Arrange a Pre-Approved Mortgage

It’s always a good idea to determine what you can afford before searching for a property. Not only does it save you time by only looking at houses that you know you can afford, but it also saves you from the disappoint of failing in love with a house that is out of your price range. There are many types of mortgages available. You should take the time to shop around and find one that works for you. Negotiate to ensure you are getting the best terms and rates that are out there. Just as you need a home that suits your lifestyle, you also need a mortgage that does the same. It is important to note that the lowest interest rates may not always come with the best terms and that you may need to take a higher (but still competitive) interest rate for more flexible terms.

Some pre-approved mortgage features to look for include:

• A 90 day guarantee – this ensures that you are protected against rising interest rates while also being able to take advantage of lowered ones.
• Flexible payment options – you may know your payment frequency and lump-sum options, but do you know what happens if you need to skip a payment or if there are penalities associated with making an extra payment?

When you decide to make an appointment to see a lender, be sure to ask what information you will need to bring with you for pre-approval. If you are serious about buying, a pre-approved mortgage is recommended. A pre-approved mortgage ensures that you are looking at properties that you can afford and allows you to shop with confidence.

Find a Realtor

Now that you’re ready to start looking at properties you should enlist the help of a professional. Realtors are trained to help you find exactly what you’re looking for and have insider access to real estate listings within your price range. They can also advise you on the buying process and walk you through the steps to acquiring the property you desire. A realtor’s services are invaluable and can save you a lot of time and hassle. It is important that you are comfortable with your agent and their ability to help you. After all, a home is typically the biggest purchase a person will make in their lifetime. You should trust them and feel that they are honest and loyal with your best interests in mind.

There are several ways you can meet an agent;

• At open houses
• Their real estate office
• Through referrals from friends and family
• Advertising and websites

Buying and selling real estate is a complex and emotional process that a real estate agent is trained to guide you through. Buying a home is often the largest purchase that a person will make in their lifetime. Enlisting the services of a realtor provides you with a wealth of experience and knowledge to draw from and ensures that your investment in a home is financially sound.

House Hunting

At this point you should already have your ‘must have’ and ‘must not have’ lists so now it’s just a matter of looking at places that fit the criteria. Your Realtor should have your list and be presenting properties to you that fit the description. After going through a property, communicate with your Realtor what you liked and disliked about the property – this is valuable information for your Realtor to find you a property that you will like. Once you find a property that meets your criteria, it’s time to make an offer. Your Realtor will guide you through this part of the process and ensure that your best interests are protected.

Make an Offer

Once you find a property that you like, it is time to put an offer in. Your representative will be able to offer you some great advice to help you come to a reasonable offer price and ensure the proper conditions are included to protect your best interests. The most common conditions on a sale are financing and a home inspection. The offer submitted is a legally binding contract stating what you will give to and receive from the seller and vice versa. Once the offer is presented to the seller and their representative, the seller can reject, accept or counter your offer. If the offer has been countered, then you have the same three options. This cycle will continue until one party either accepts or rejects the offer. Once an offer is accepted, then all conditions must to be met according to the timeline laid out. It is important to keep in mind that the home is not sold until all conditions are met. Anything can happen – the home inspection may provide unsatisfactory results or you may not be able to get suitable financing to purchase the property.

Your Remax associate will guide you through the negotiations and help you come up with a reasonable offer by providing you with information on comparable properties that have recently sold.

It is important to note that you should only discuss how much you are willing to pay for a property with your own realtor. If the seller or their agent finds out that you are willing to pay more than the offer you submitted, then they will be inclined to hold out for a higher price.

Fulfill Conditions

If you have a pre-approved mortgage, then preparing your mortgage should be fairly simple. If you don’t have a pre-approved mortgage, then now is the time that you will be searching for the terms and rates that you like best. It is encouraged that you shop around for the best mortgage out there that fits your needs. Since your mortgage may be with you for up to 25 years, you should ensure that you are comfortable with and understand all of the terms of it.

Another common condition on a sale is the successful completion of a home inspection. After the inspector of your choice has completed their inspection, you should get a detailed written assessment of the condition of the property, including such things as heating, plumbing, electrical systems, roof, foundation, etc.

All conditions on the sale will need to be fulfilled or waived in order for the deal to close as planned. If a condition is taking longer to be fulfilled than planned, then an extension can be agreed upon. However, if it is not agreed upon by both seller and buyer, then the deal will fall through.

Closing

This can be a hectic day for both the seller and the buyer. On the closing date you will receive the keys to your new home provided that all of the conditions were met or waived. Hopefully you have made arrangements with the utility companies to have heat and hydro transferred into your name. On closing day your lawyer will pay the vendor, register the home in your name and deliver the deed and keys.

Congratulations! You now own your new home! Time to un-pack!