416-443-0300

Ten Steps To Home Buying

An Online Guide to Purchasing Your First Home or Condo.

Step 1. Determine your price range

The best way to do this is to sit down with a qualified mortgage rep or have a real estate salesperson recommend you to a reliable source of mortgage money. The mortgage rep will pre-qualify you and based on your down payment and your income they will tell you the price range in which you will be able to purchase a home.

It is important to be pre-qualified before you start to search for your home or you may be disappointed when you discover you cannot buy the condo or loft that you want.

“The Great Life” Real Estate Team can assist you with the mortgage application and approval process, if required. To learn more about how to qualify for a mortgage and finance your first home Financing Your Property If you have questions about how to raise a downpayment or how to use your RRSP for your downpayment or closing costs Create A Downpayment for more information.

Step 2. Review features and amenities that you desire in a home.

If you are planning to purchase a home in the Greater Toronto Area your price range as determined by your meeting with your mortgage rep will greatly determine the location and quality or the type of property that you can purchase.

You may find that you have to adjust your ideal locations and features depending on your pocketbook.

At this point you will need to consider moving to Step 3. It is important to consider your overall budget at this time as well Budgeting For Your New Home click here for a list of items to consider.

Step 3. Appoint a “Buyer Agent”. To work with you.
If you are calling agents directly from the MLS.ca website you are speaking with the agent who has the listing… You may think this is ideal.. However, this salesperson is empowered to act for the Seller of the Home and cannot act in the Best interests of the Buyer.

It is extremely important for you to have your own Buyer representation when viewing condos, lofts, and then when making an offer. Otherwise you will be out in the cold with a real estate salesperson who is only required not to lie to you, but is not allowed to protect your interests. For information on the benefits of buyer agency Finding Your Buyer Agent

Step 4. Select desirable properties in the appropriate price range.

Your real estate representative will help you with this process. If you work with “The Great Life Team” we send you listings daily and discuss the pros and cons of specific locations and buildings before taking your time to go out and view them with you.

In fact if you would like us to send you a few weeks of listings just to get familiarized with the area you are considering Search For Listings to sign up for new listings and we will send them to you daily. We can set up a meeting at your convenience to discuss your needs and take you to view the properties.

Step 5. View properties

Okay, this should be the fun part. Don’t feel rushed. It is important to get a good sense of what your money will buy in different parts of town and in different buildings. Document your feedback so you have a record of what you liked and what you didn’t. Once you have looked at more than a dozen buildings it can get confusing as your memory gets fuzzy.

When you find a unit you are pleased with don’t forget to check out the rest of the amenities in that building and also facilities, shops and transportation in the surrounding area.

Step 6. Upon home selection, prepare Agreement of Purchase and Sale.
Once you have found a unit you like and feel comfortable that you will enjoy living in for a minimum of 3 years go ahead and make an offer. Why 3 years? Because if you were to sell before that you might lose money.

Although property usually increases in value markets are not always soaring upwards and market value does fluctuate. Upon the sale you will have commission fees to pay and also moving costs… Take this into consideration when making your purchase. Purchase a unit with enough space and features that you enjoy in a neighbourhood you like that you can live with for at least a 3 year period.

Your Real Estate representative will type your offer for you with all of the necessary clauses and conditions for the local market you are in. If you need to receive final confirmation of the mortgage and also a copy of the buildings Status Certificate that will all be accounted for in your offer. You will have a certain number of days to obtain each of the above.

Step 7. Begin negotiation process.

Your Real EstateConsultant will take your offer and have it presented to the Seller. The offer will be negotiated back and forth and all parties to the contract will have to agree to any changes. At this point you must be sure that you have sufficient monies available for a Deposit on the home. Check with your Real Estate Consultant to see how much is appropriate in your area.

Step 8. Acceptance of Agreement of Purchase and Sale
At the moment the offer has been accepted your deposit monies become due. In Ontario the deposit must be held in a Real Estate Trust account and it must be there legally within 48 hours of acceptance of the offer or 2 business BANKING days.

Step9. Fulfilling Your Conditions
At this point you will move forward with your conditions. They are most typically going to be financing, Status Certificate also known as the Estoppel Certificate, and or a Building Inspection. Your Real Estate Consultant will have made sure there is adequate time allowed in your offer for each step… This period can be a bit hectic and stressful while you are waiting for everything to fall into place.

Your consultant will forward all the paperwork to your financial institution and your solicitor will request the Status Certificate. If necessary you will also have your home inspection booked.

Once everything falls into place, and it does in most cases; you will sign further forms called Waivers. Kind of like saying I waive my conditions goodbye and now I am firm. It is important NOT to sign these forms until you have a WRITTEN approval from your financial institution and until your solicitor has reviewed the Status Certificate on your behalf and made his recommendations.

Once you have waived your conditions you are FIRM on this property. If you should decide to back out after you are firm there is potential to be sued and the Seller could be entitled to your deposit monies.

If you cannot get your financing or there is a serious issue with the Status certificate you can be released from your contract within the time frames specified in the agreement. In this case you would have your deposit monies returned to you in full. There would be no interest and no deduction made.

Okay so now the PROPERTY IS SOLD!! And you are on your way to owning your new Home.

So, What happens next ….

Step 10. After The Offer is Signed and The Conditions are Removed.
You are now on the last leg of a home run. Your Real Estate Consultant will see to it that all of your paperwork is delivered to your solicitor. He will begin his due diligence which includes writing letters to the city on your behalf and doing a Title Search to be sure you can take a Clear Title to the property.

A day or two before closing you will visit his office, sign paperwork and give him the balance of your down payment plus the closing costs on your transaction. Estimated Closing Costs

By the way… if you are working with The Great Life Team we have a program by which you can defer your closing costs for up to six months.

Once you have your new home your going to start thinking of ways to pay off your mortgage faster for Five Tips on Saving Money on Your Mortgage tip.

To book an appointment with a member of The Great Life Real Estate Team you can E-mail us at mytorontohome@gmail.com or call(647-886-1550.

To learn more about the home buying process attend one of our Toronto Buyer Workshops or our Investor Workshops Toronto Buyer Workshop

Share

Speak Your Mind

Optimization WordPress Plugins & Solutions by W3 EDGE