Buying a home is one of the most significant purchases of your life, so it's essential to have all of your bases covered! Whether it's your first or fifth home, this list will guide you through your real estate journey to help you think critically and make smart choices.
Step 1: Priorities First
Neighbourhood | Lifestyle | House Considerations:
Before you begin building your list of dream homes, stop and consider your motivations and lifestyle needs.
Identify your needs vs. wants:
Identifying your needs from your wants will give you a greater sense of clarity and help with staying on budget, limiting house hunting frustration and disappointment.
A NEED is something you must have when purchasing a home.
A WANT is something you can easily add or change to the home in the future.
Get clear on your financial health:
Before you start shopping around for a lender, order a copy of your credit score. Knowing your credit score in advance will help you better prepare, whether that is saving up a larger down payment or taking measures to improve or build your credit before going through the application process.
To get an accurate credit report order it through Equifax Canada or TransUnion
Canada, they both offer different information to help you on your way to financial peace
of mind.
Talk to a financial planner and get pre-approved:
Get your mortgage pre-approval from your bank or mortgage broker. This can be a long process, so the earlier you start, the better prepared you will be.
What is the difference between a mortgage broker and a bank?
A bank can only apply for a mortgage with the bank they are associated with. Whereas a mortgage broker works with multiple lenders to ensure you are getting the best rate.
Picking the right real estate agent:
Pick a realtor that you feel understands your needs and wants. Have a buyer consultation with three agents and choose the one you think is right for you.
Step 2: Starting the Search
Tools:
Have a Private Client Search set up, so you receive all new listings. The search is specific to your criteria and can be changed at any time
Research:
Once you have established a list of potential homes, take a drive by the house and get a
feel for the neighbourhood. Pictures and listing descriptions don't always tell the full story.
Viewing homes:
You may fall in love with the first home you view, or it might take twenty; however, when you find the right home, you will know.
Writing an offer:
Once you have found the right home, it is time to negotiate and prepare an offer.
Accepted offer:
After you have an accepted offer, it is now time to make sure the terms and conditions of the contract are met before subject removal. *(Typical terms include: Financing, Inspection, Title, PDS, Due Diligence, Deposit, Insurance).
Subject removal:
Once you are satisfied with the terms of the contract and have financing approved, we can remove subjects! With subjects removed, the property you have purchased is now considered sold, and the deal is firm and legally binding.
Completion:
With the contract now firm, it is time to prepare for completion.
- Meet with your lawyer or notary to sign documents.
- Prepare a bank draft for the amount to be provided by notary/lawyer.
- Make sure utilities are transferred and set up in your name for the day of completion of your new home.
Moving Day/Possession:
Possession day is the day you get the keys and can take physical ownership of the property. Possession may be the same day as completion of the following day, depending on what is written in the contract.
Step 3: Relax and enjoy your new home
Time to celebrate, invite your friends and family and unpack and relax.