Steps to Buying a Home

The thought of buying a home can be pretty overwhelming. We decided to break it down into a simplified step by step process.

Here are our 9 steps to buying a home:

1.      Find out how much you can afford. The first steps to buying a home is simply finding out how much you can afford. You can do this by going to the bank/mortgage broker to get pre-approved. They will review your assets/debts and employment information, to give you an idea of what you can spend on a house. Note: This number is not set in stone, it can be subject to change.  For a general idea check out this Affordability calculator.
2.      Make a list of your needs/wants.  The second step in our 9 steps to buying a home is to look online to see if you will be able to fulfill your wants based on your budget. If you are over budget, decide which things you would be willing to compromise on.  It’s good to have a general idea of what you want, but don’t get too caught up in the “must haves” list.  Many buyers are adamant on buying a certain home, in a certain neighbourhood, but end up buying something completely different. Remember to keep an open mind.
3.      Find an agent. In this hot market, it is very important to have a realtor helping you with your search. Many buyers without agents call us about properties that have already sold and state that they keep “missing out.” Realtors are able to see listing 24-48 hours before they are available to the general public. As the third step in our 9 steps to buying a home, choose a realtor who will make sure that you never miss out on a home that fits your criteria. Also, with many homes going to multiple offers, it is especially important that you have an EXPERIENCED agent helping you navigate this tricky buyers’ market.
4.      Go house hunting! Have your agent take you through multiple houses/open houses. Remember, it is good to check out a variety of homes to get a feel for which you prefer.  When you are seeing multiple homes in a couple of days, they may start to blur together.  To make sure that you remember things clearly,  it’s a good idea to carry around a clipboard and write down the things you like & dislike about each home.
5.      Put in an offer! With your realtor’s guidance, decide upon the price, closing date, conditions, and inclusions you are going to offer. Your realtor will be able to show you comparable properties to help you with pricing. Your offer will be presented to the sellers by your realtor. The sellers will either accept, decline or sign back. Once the offer is accepted it will either be firm (no conditions) or conditional (has conditions such as home inspection, financing, or insurance.) In a hot seller’s market offers are typically firm unless the home has been on the market for a while.
6.      Fulfill conditions. For a home inspection, your realtor will refer you to a trusted inspector and help you book the appointment. You will both receive a summary of the inspection. If there are serious unexpected issues you can ask the seller to fix them, ask for a discount, or walk from the deal. For financing, you will meet with your bank or mortgage broker who will walk you through setting up a mortgage. If you are putting less than 20% down, you will need to get an appraisal to ensure the home is worth the value of the mortgage.
7.      Meet with your lawyer: Your realtor will send all the necessary documents to your lawyer. You will need to meet with your lawyer a few days prior to closing. Make sure each person involved in the purchase of the home brings two pieces of photo identification, proof of fire insurance, and be prepared to confirm that you are aware of the amount of the certified cheque/bank draft.
8.      Final Walk-through.  
   1. Check all appliances/ equipment (lights, taps, ice cube/water dispensers, shower/tub, etc.) to ensure that they are the same appliances/ equipment as the ones noted on your contract and that they are in working order. 
   2. Make sure all included curtains/ window coverings are still there (if included in the offer)
   3. Check for damage that has occurred since you purchased the home (cracked windows, holes in the walls, etc.).  Note: Holes larger than a coin in the walls should be repaired by the seller(s) however, they need only be patched, not painted.
9.      Move into your new home! If you are moving in on the closing date, your home can close any time before 6pm. Please plan on moving in the late afternoon. If you have hired movers, you are best to hold off the move until the day after closing.

So those are our 9 Steps To Buying A Home. As a bonus, if you’re wondering about buying a resale home versus new build home, we have some helpful pro’s and con’s that can help you make a more informed decision.