Below are six steps to the home buying process, enjoy.
Where you live has an impact on your lifestyle and it’s also one of the most significant factors on the value of your home. Choice of location is sometimes limited by the price you can afford but it is still important to consider factors such as commute to work, schools, family, shopping and entertainment.
Consider how much you have to spend, and just as importantly, consider how much you want to spend. Note that purchasing a home includes numerous additional expenses above and beyond the list price (see step six).
Is it important for you to have an ensuite bathroom, an attached garage or a private backyard? Would you like a fireplace, a short commute, or maybe a fixer upper? Once you decide which features you would like, then it’s time to prioritize the list.
Type of Home
You should consider what type of property you would like to live in. A single-family detached home is desirable to many because it typically provides more living space and land. Alternatively, a condominium may be a more appropriate choice, since condos offer low-maintenance living. It is important to determine what type of home best suits your budget and desired lifestyle.
Speak with a realtor to discuss your interets so they can guide you in the right direction.
Once you decide to visit a property, keep your requirements in mind, i.e. does it have all the features you want? does the location work for your lifestyle? Also keep some of the technical considerations in mind, such as: wiring, power outlets, heating, foundation and roof maintenance, windows, plumbing etc. Home inspections can provide an assessment of the technical aspects of a property and it is a good idea to have a professional inspection performed. Some features may be missing in this competetive market, is that going to be okay with you in the long term.
When you find a property that you would like to buy, your agent can put together an offer. The offer will include, the price you are willing to pay, expiration of the offer, a closing date for the purchase of the home and conditions for the purchase. Some commonly included conditions are:
Financing, which states you will be able to get a mortgage.
Selling your current home.
Survey provided by the seller that shows there are no encroachments on the property;
Title of the property being owned by the seller (your lawyer will confirm via a title search).
Home inspection by a qualified inspector
Inclusion and exclusion of any appliances and other items - basically, what stays and what goes.
A deposit is given within 24 hours of acceptance of your offer. A deposit of strong value will show your good faith to the seller.
Here is a PDF with more info about the home purchasing process
Once an offer is accepted and all conditions are met, then the offer becomes binding on both sides. If either party then does not honour the agreement, they can be sued or the deposit lost; therefore before signing, be sure that you fully comprehend all the terms of the offer. Before the property can formally be handed over from the seller to the buyer, a few more things must be done. but these steps are up to your mortgage agent and lawyer. You generally have two more visits of the home before closing. We recommend one of those visits is done the day befoer closing to ensure the property will be left clean and tidy. Here is a checklist to make sure you've done a clean sweep.
Purchasing a home is associated with some extra expenses, such as:
Real estate agent fees
Survey costs (if the seller didn’t have a current survey)
A high-ratio mortgage
An interest adjustment for the mortgage
Reimbursement to seller for the unused portion of any prepaid property taxes or utility bills
Land transfer tax
Mortgage broker's fee