Now that you are ready mentally to take that step – let’s make sure you are ready financially and well prepared with the necessary information to make the right decisions. As you will see, there is more to buying the right home than how much the actual home meets your needs. So let’s get started…
Get ready to buy a home
· Build a good credit history – make sure you don’t have too much debt but also ensure that you have actively been using your credit cards and paying your bills on time to demonstrate your ability to pay your bills in a timely manner.
· Follow a budget and save up for a downpayment as well as closing costs.
· Get pre-approved for a mortgage with a trusted advisor who can also advise you on what type of mortgage product will work best for you and who can explain the benefits of each of your options clearly.
Find a Great Real Estate Professional
Finding a home online is easy if it is listed on MLS. However, with the shortage of good inventory available in the best neighbourhoods it makes sense to work with an agent who has access to exclusive and off market properties.
The listing information provided in the MLS listing only gives you access to some of the information that you really need so that you can make an informed decision. In order to gather all the necessary information and get expert advice and insight into the property and the area, it is important to be working with a knowledgeable real estate agent who truly cares about your needs and helping you to achieve your goals.
A real estate agent should be an amazing resource. How do you find the right one for you?
· Get a referral from friends, family, and work colleagues.
· Explain your needs and expectations to the real estate professional that you choose to work with and ask them directly why they believe they are the right person for the job.
· Ask the real estate professionals you interview about buyer's representation agreements and contracts and make sure that you understand the terms.
Find the Right Property
· Determine what is important to you. Consider the neighbourhood, the schools, area amenities, price, public transportation, walkability, etc...
· Look beyond the physical beauty of the home and consider the condition of the home as well as the layout. Will this home meet your needs in terms of your lifestyle?
Make An Offer
· Ask questions, get answers - the more information you have, the better. Your real estate agent will be able to ask the right questions to help you decide on the right price for your offer.
· Include all of the clauses needed to protect you and make certain that you understand what they mean (financing, inspection, status certificate, etc...)
· Read through the offer before signing and make sure that you understand what you are signing and agreeing to. Your agent should be able to explain everything clearly to you before you sign on the dotted line.
· Be prepared for negotiations and to counter-offer.
· If your offer is accepted, remember that time is of the essence - get your home inspector to the property and get your financing arranged as soon as possible. Address all other clauses and conditions immediately as outlined in the agreement of Purchase and Sale.
· Provide a copy of the accepted offer to your lawyer and have them get the ball rolling on their end.
Finance the Property
· Contact your mortgage broker ASAP and follow up on that pre-approval.
· Choose the right financing for you and ensure that you understand the terms well.
· Keep your credit score stable by not making any major purchases until after closing on your new home.
Before Closing
· Purchase insurance for your home (it is a requirement for financing)
· Create and maintain files for all your documents, warranties, contracts and paperwork
· Contact the utility companies to set up accounts
· Hire movers
· Follow up with your lawyer and lender to insure all is in order.
Enjoy the journey – as with every process there will be ups and downs. Being prepared and guided expertly will help you achieve your home ownership goals and make it a great experience!
If you have any questions about the home buying process, please contact me directly by phone at 416-820-3006 or by email at daniellagoldre@gmail.com. It would be my pleasure to answer your questions and assist you in any way that I can.
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