Buying a Home?

My Liberty Village Condos Introduction to Buying a Home

 

Buying a home is a momentous accomplishment, but one that needs to be approached with serious thought. The process of purchasing a home, whether it is your first home or not, is a serious and sometimes daunting process. This is a break down of the buying process, albeit a brief introduction.

Assessing Your Readiness

Home ownership requires both financial and emotional readiness. You need to be able to afford the property, but you also need to be mentally ready to take on the responsibility of owning a home. It is also necessary to know what it is that you want and why. Defining the reasons for the purchase will help you decide on the type of property to look for, budget, and the timeframe in which you’re looking to move. Consider whether you would be eligible for a mortgage or if you can afford to take on more debt. Financial readiness is a definite prerequisite.

A Realtor is a Must

Once you’re sure you’re ready to buy a home, consult a Realtor. The home buying process requires the experience, expertise and skills of a trained and licensed real estate agent. To understand the legal and market jargon, for negotiating the best deal on your behalf, and to help you understand the marketplace, find a Realtor that is active in the neighbourhoods you’re considering. A Realtor will help narrow down the thousands of properties on the market to the ones that fit your needs and wants. Getting someone else to do all the legwork will save you time and limit the stress associated with buying a home.

Pre-Approved Mortgage

Getting pre-approval means you have met with a mortgage lender, such as a bank, and have had your credit reviewed and the lender believes you would be able to qualify for a mortgage. Usually you will be pre-approved for a specific amount, based on your current financial situation. This pre-approval represents the amount you would likely be approved for and helps set your budget for purchasing a home.  It is important to get pre-approved so that you can focus on homes that fit within your borrowing power.

Viewing Potential Homes

In order for your Realtor to show you homes that fit your criteria, you need to come up with the ‘must-have’ and ‘would-like’ features of your future home. Your Realtor and Brokerage will handle making appointments for you to view homes based on your availability.

Choosing a Home

A home will be the backdrop to your life, it’s where your family will grow and memories will be created. It’s more than just shelter so choosing the right home is important. Consider the features you’re willing to compromise on, does it meet the families needs? The house should be practical for your family needs but it also needs to develop into your home. Once you find a home you’re interested in, your agent would put in an offer.

Making an Offer

If you view a property you’re interested in and it’s within your budget, you may make an offer. An offer provides the Seller with information on your intent to purchase their property. Your Realtor will help you come up with an accurate purchase price and conditions upon which you would purchase the home. The Seller and their agent may come back with a counter-offer, may refuse your offer, or may accept it.

Getting Funding

If you’ve been pre-approved for a certain amount, you still need to actually apply for a mortgage. Consider the amount required for a down payment and the extra closing costs associated with purchasing a home. If you are not able to purchase the home with cash, then financing such as a loan or mortgage are necessary. Ask your Realtor to put you in touch with a mortgage advisor.

Closing

In order to close on a deal, the conditions of the offer need to be met. For example, the buyer must receive the finances necessary to complete the purchase and the inspection of the property needs to be completed. As the Buyer, you will have the opportunity for a final walk through of the property, to ensure everything is in order. At the time of closing, you will receive the keys to your new home.

Though it can be a stressful time, homeownership is an exciting process. Having a qualified and experienced Realtor at your side will ensure that you are aware of your rights and are making educated decisions along the way.