7 Essential Steps for Buying Your Next Home
If you’ve been through the process of buying a home, you know how complicated the process can be. If you are buying your first home, well, it can be even more confusing. Here’s a short version of the 7 essential steps involved in buying a home. This does not cover everything, but I’ve created it to give you an overview of what to expect.
Step 1 – Making the Offer and Negotiating the Contract
• Ask your real estate agent for prices of homes that have recently sold, and then base the dollar amount on what you are willing to spend
• Be upfront about what you want included, such as curtains, lighting fixtures, appliances, etc.
• If you don’t need to move on a certain date, be flexible on the settlement date
Step 2 – Getting a Mortgage
• Find a lender by asking family, friends or real estate agent who they would recommend. (I hope that you consider us!)
• Calculate your deposit because that can determine what type of loan to apply for
• Get pre-approved before you submit your offer
• Obtain interest rate quotes and costs comparisons
• Be prepared to provide financial documents to your broker/lender
Step 3 – Inspecting the Home
• Find a qualified inspector
• Ask to accompany the inspector when you make the appointment
• If there are problems, obtain individual inspections by certified contractors and get a quote for the repair work
• Ask the seller to correct the problems or ask for a reduction to the sales price
• Ask for additional inspections that may not be covered (i.e., mould, water quality).
Step 4 – Reviewing the Appraisal/Valuation
• The lender will order the appraisal
• You may receive a copy within three days of the appraisal being received (depends on the lender if they will actually provide it) by the lender (GET A FREE PROPERTY REPORT HERE!)
• If the value is lower, try to negotiate the sales price with the seller or come up with more money for a deposit.
Step 5 – Shop for Home Insurance
• Check at least three insurance companies
• Compare coverage, including personal property
• Do a Google search on how quickly they handle claims.
Step 6 – Viewing the home before closing
• Verify that all items you negotiated in the contract are still there
• Check appliances to make sure they are in working order
• Turn on taps and flush toilets
• Check heating, air conditioning, smoke detectors
• Check once more for water stains
• Watch for any trash left in the house (extra expense for you to remove)
Step 7 – Settlement
• Review your settlement documents three days ahead of time
• Get a list of the settlement costs and the dollar amount you will need to settle the loan
• Get bank cheques (if required)
• Provide home insurance to the lender
• Watch for fees that were not disclosed to you with the first quote