Steps to Buying a Home
I won't bore you with overhwelming preamble about the pros of home-ownership. If you have landed in this section of our website, it's likely that you already understand the advantages of owning Real Estate. So, insead, let's get right into the Steps to Buying a Home.
Side note: If you have specific questions about any part of the buying process (any questions at all), please feel comfortable enough to contact me. I am happy to help however I can.
STEP ONE: Decide if home-ownership is right for you.
- What are the pros and cons of buying vs renting? (Perhaps this worksheet will help)
- What is your employment outlook for the next few years?
- Are you prepared to take on the responsibility of home maintenance?
STEP TWO: Assess if you're financially ready.
- Calculate your household expenses (here's a budget calculator)
- Calculate your monthly debt payments
- Calculate your total monthly expenses (household expenses + debt payments)
- Plan for various expenses related to home-ownership (e.g. heating, property taxes, maintenance, renovations as required)
- Determine affordability using formulas that lenders typically use (Debt Service ratio calculators, here)
- The maximum house price that you qualify will depend on a combination of: a) Gross monthly income, b) Downpayment, c) Mortgage interest rate, d) Credit history
- Make an appointment with a mortgage specialist to understand different mortgage options and which one works best for you
- Bring the following information with you: a) Identification, b) Employment information - including confirmation of salary, c) All sources of income, d) Bank account information - including loans and other debts, e) Proof of financial assets, f) Source/amount of downpayment and deposit, g) Source of funds to cover the closing costs - usually between 1.5% to 4% of purchase price
- Obtain a pre-approval from the bank
STEP THREE: Consider the criteria that are important to you.
- Size (e.g. square footage, number of bedrooms, number of bathrooms, number of parking spaces)
- Type (e.g. apartment, townhouse, semi-detached, detached)
- Location (e.g. which part of town, corner lot, access to major transportation routes)
- Style (e.g. 2-story, 3-story, side- or back-split, bungalow)
- Features (e.g. A/C, fireplace, swimming pool, energy efficient, hardwood, counter-tops)
- Ownership (e.g. freehold or condominium)
STEP FOUR: Turn the vision into reality.
- My team is put on the hunt to find your dream home (ask me about all the avenues we explore to find it)
- You are immediately notified about any new listings (via a real human not an automatically-generated system)
- You pick which listings you would like to see
- My assistant arranges viewings
- I show the houses to you
- You let me know when you've fallen in love with one of them
- We prepare and submit a meticulously crafted offer
- Once the offer has been accepted, go see your lender
- The bank will verify/update any information related to the sale to finish the mortgage approval
- We remove the conditions once they are satisfactorily met
STEP FIVE: Move in.
- Meet with your lawyer on the closing date to sign the final documents
- The lender gives the mortgage amount to the lawyer
- Give your down-payment (less the deposit) to the lawyer (plus any closing costs determined by your lawyer)
- Your lawyer pays the seller and registers the home in your name
- You get the keys to your new home from your lawyer
- You move in
- We meet at your house to celebrate with you
STEP SIX: The ever after part.
- We check-in periodically to make sure you're always enjoying your home
- We make sure you never have a Real Estate related question left unanswered
- You always feel comfortable reaching out to us for help with anything