As your personal guide and trustworthy agent, I strive to give you the best of the best. In the years that I’ve spent in the industry, homebuyers have always asked me “What do I need to do when I buy a house?”. I’ve composed a step-by-step guide that organizes the buying process to make buying a house simple and fun!
Step 1: Decide to Buy
Before you even go looking for a home, you have to understand your needs. Think about the type of place you’re looking for. Are you looking for a lot of bedrooms and washrooms for your family? Do you want a pool in the backyard? Do you want to live close to a school or a mall? These are just some of the things you have to consider before start looking for a new home.
You also have to familiarize yourself with different types of ownership as well to help narrow down the perfect home. Freehold is when it’s all yours, a condo is when you take care of the inside and pay your fees to an association, and co-op is similar to a condo but you rent a unit in the building and pay maintenance and repair fees.
Once you have narrowed down some qualities, its time to go looking for a home!
Step 2: How Much YOU Can Afford
Find out what are your financial goals. In order to set goals, you should make an analysis of your current situation in terms of income and spending, discover ways to maximize your saving. In today’s digital world, there are significant amount of information available; such as “on line” tools and software, for example Microsoft Money to help you determine the current situation. Once you have a clear picture of your earning and spending, then start planning for future saving, and discover ways to maximize your saving and move to the next step.
Step 3: Find your Home
Step 4: Make an Offer Now
Now that you’ve found the house that you are set on, it’s time to make an offer. Not all offers are the same and here’s where your real estate agent comes in. They will help you with specific terms and conditions that will be specified in the offer like the price you want to pay, financing conditions, or other things like inclusions and exclusions.
Not only is it about the price of the house but you have to carefully look at the other details included in this sale. Appliances, chandeliers, or even minor renovations can also be part of the deal. Shorter or longer closing dates can also be specified in the offer.
If there is something in the offer that doesn’t satisfy the seller, counter offers or negotiations can also be presented to help get a price that you think is fair.
Step 5: Close the Sale
There will be closing costs associated with the sale that need to be paid either by or on the closing date. It can include mortgage application fees, inspections, and legal fees. But once that’s taken care of, you get your new house.
Congrats, welcome to your new home! You’re all ready to move in!
Note: In Canada the required amount for down payment is 20%. If the down payment is less than the necessary amount, Many mortgage lenders require you to purchase private mortgage insurance (PMI). This type of insurance protect the lender in case of a default. It is imperative that the new home buyer is knowledgeable about the current market conditions and have a clear understanding of their current financial situation.
Do your homework and use the steps mentioned above as a starting point, be diligent in order to avoid pitfalls and costly legal entanglements.