Even if you’ve done it all before, the home buying process can be downright overwhelming. But the good news is, with the right advice and guidance, your next home purchase can be quick, easy and even enjoyable – all you need to do is take the right steps.
Here are the nine key steps every buyer should take when purchasing a home:
1. Find Out How Much You Can Afford
First thing’s first: you’ll want to get an idea of how much home you can afford. This applies to how much you can (and are willing to) pay for a monthly mortgage payment, down payment and other additional expenses (i.e. closing costs). Remember, to afford a home in Canada, you must come up with a minimum down payment of 5%. With the help of a free Mortgage Calculator, you’ll be able to decide if you’re ready for homeownership now or need to save a little longer.
2. Get Pre-Approved
If you’ve determined that you’re ready to buy a home, your next stop should be your lender. During the pre-approval process, your lender will take an in-depth look at your finances to see how much mortgage you qualify for (thereby determining how much they’ll be willing to loan). Getting pre-approved before you hit the market is important because a) it will simplify your home search (no looking at homes you can’t afford) and b) ensure you’re taken seriously by sellers.
3. Partner With a Great REALTOR®
Just because you could buy a home on your own, doesn’t mean you should. As we mentioned above, the home buying process can be tricky, not to mention time-consuming and costly without the right representation. For this reason, we recommend partnering with an expert Edmonton REALTOR®. Not only will they help you find the home of your dreams at a great price, but they’ll also keep your best interests at heart every step of the way (this is especially handy when it comes to negotiating with sellers).
See our previous post: 6 Great Reasons to Choose a REALTOR®
4. Start Your Home Search
Now that you’ve teamed up with a great REALTOR®, it’s time to hit the market. Keeping your distinct wants and needs in mind, your agent will begin introducing you to properties they feel will meet your unique interests. Yet another perk of working with a pro, your REALTOR® will save you time (and money) by coordinating appointments on your schedule and only showing you homes aligned with your budget.
5. Make an Offer
Once you think you’ve found the right home, it’s time to make an offer. At this time, your REALTOR’S® negotiation skills are a huge bonus as they will broker the best deal possible on your behalf. Once the offer has been accepted, the home will go into escrow until the remaining conditions of the sale have been met.
6. Get an Inspection
Speaking of conditions, we recommend making your purchase conditional on a home inspection. To the untrained eye a home may look amazing, but without the help of a skilled professional (inspector), it’s hard to know what you’re really getting into. Should they discover any problems with the home, the conditional inspection will allow you to negotiate or back out of the deal entirely
7. Finalize the Paperwork
During this stage, you’ll seek final approval for your mortgage as well as meet with your lawyer to finalize any remaining details. All other paperwork and red tape will be taken care of by your REALTOR®, allowing you to focus on more important things like getting ready to move…
8. Get Ready to Move
While moving may seem straightforward, you may find yourself in a jam if you attempt to book a moving company (or friends and family) last minute – so be sure to do this a few weeks in advance. And don’t forget to make arrangements for utilities, mail forwarding, and change of address!
9. Closing Day
Last but not least, closing day!! This is the day you’ll finally be able to take possession. After you’ve signed all the remaining documents, you’ll receive both the deed and keys to your new home! Congratulations!
For more helpful home buying advice, check out our Home Buying Tips!
Sources: Genworth.ca
Photo credits: freepik.com