Buying a home is an important decision, both financially and emotionally, but the home buying process need not be overwhelming. To set you on the right path, I have compiled a thorough guide to ensure you are confident and well-informed in your home buying journey.
Here is a simple guide to the steps to buying a house and how I can help you through the home buying process:
Build a Budget
An effective budget will map out your plan to set aside money for your down payment and additional costs.
It will also help determine the price of home you can afford.
Investigate Mortgage Option
There are many different types of mortgages. If you don't have the 20% down payment for a conventional mortgage,
you can get a high ratio mortgage, combined with mortgage default insurance, that allows for a smaller down payment.
You should be pre-approved for a mortgage before you start house hunting.
Choose your Community
Toronto is a city of "neighbourhoods" and selecting your new community is as important as choosing your home. It is essential
you find the locale that offers the lifestyle you want now and in the future. Transportation options, green spaces, recreational activities, proximity to shopping, dining and health services arer all areas you should research. Try to visit the areas durind the day, evening and on a weekend to fully appreciate the environment.
Screening your "Must Haves"
Another important thing is determining what you consider your must-haves, and what feauture your willing to be flexible about.
These may include age of home, yard space, number of bedrooms and washrooms and distance to commute. Thinking of these key things could help you save valuable time and energy when buying a home. Remember to think of future lifestyle!
Purchase Offers and Negotiations
When your perfect home is found, one of the next steps to buying a house is to present the offer to the seller "offer to purchase form", which includes the price, conditions, deposit, and closing dates. The seller will then expect, reject, or send back a counter offer. You may find yourself in a multiple offer situation, in this case I will put my negotiated skills to work and help you draft a competetive offer.
I will include a home inspection clause in the "offer to purchase". A qualified home inspector will evaluate the interior and exterior of a structure, looking for several things including heating and cooling systems, electrical systems and plumbing, the roof and foundation and identify any repairs needed and will include estimated costs.
It's important to hire a lawyer who specializes in real estate. A real estate lawyer will conduct a title seach and check for
outstanding taxes and liens on the property.
Finalizing and Closing the Deal
Finalizing the deal will include final approval of your mortgage, a meeting with your lawyer to finalize details like insurance and conditions, and the results of the title insurance. There's a lot to do before you move. Line up Utilities and other services like phone, cable and internet. If you rent, you must give your landlord notice. Also, forward your mail to your new address and hire a moving company. Preparing these things in advance will help you make a smooth transaction to your new home. Ensure you have purchase property insurance, which is required starting the day of closing, as the bank will not advance the funding until this obligation is met. You will take ownership and possession of the property, generally, 30-60 days after your offer is accepted.