Loading...Buying a home is one of the biggest financial decisions you’ll ever make. Having the right guidance to help you understand the key steps in the home-buying process is essential to make a purchase you’ll be happy with for years to come. This blog post will cover these steps while also outlining what to expect at each moment.
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Assessing your Finances
In Canada, there are many factors that play into getting approved and buying a home. The very first thing buyers should consider is their financial situation and credit history. To secure a home, you’ll need to demonstrate to sellers and lenders that you are financially capable of completing the purchase. In this first step, you’ll be able to get an understanding of what your options might be and finding a trustworthy broker can greatly help when it comes to understanding your budget and mortgage choices.
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Discovering Options
Affordability and location go hand in hand when buying a home. Once you’ve created your budget, the next step is to explore areas and properties that align with both your financial limits and lifestyle needs.
Discovering home options is more than just what you can afford; it’s important to consider if the local neighbourhood fits your lifestyle, from job location to family needs and future plans. Buyers should envision what their life might look like within their preferred areas and decide if it’s something they can do long term.
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Getting Pre-Approved
A mortgage pre-approval comes with many benefits that can help you make realistic decisions when looking at homes. This pre-approval tells you how much of a mortgage a lender is willing to finance as well as what your interest rates might look like. Getting a pre-approval before putting in an offer not only shows you are a serious buyer but can also speed up the closing process. Once you’ve been approved, most lenders lock the given rate for 60-120 days while you find a house and finalize the closing.
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Finding An Agent and Making Offers
Now that you have a budget and options in mind, the next step is to find a real estate agent who can guide you through the search, negotiation, and offer process. Finding a professional, responsive agent can make or break how smoothly the home-buying process goes. An agent is the communication link between you and the seller, and having someone with the knowledge to ask the right questions can make a huge difference.
In a hot market, it’s not uncommon for buyers to put in offers without any conditions. A firm offer signifies a buyer’s 100% commitment, meaning no backing out once submitted. On the other hand, a conditional offer requires certain terms to be met for the offer to be considered valid. It’s recommended, especially for first-time home buyers, to include conditions on financing and home inspection. While some sellers might choose a firm offer over a conditional offer, it’s important that, as a buyer, you are protected. Having an experienced agent to advise you on your offers is crucial.
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Closing and Moving
The final step in the home-buying process is closing. Once your offer is accepted, the home closing process can take anywhere between 30 and 90 days to complete, and you’re required to pay any closing costs, which are the one-time fees that come with purchasing a home in Canada. It’s important to calculate and budget for these costs beforehand, as they are required to be paid upfront. Closing costs are broken down into multiple small parts, but the two main components are usually land transfer tax and lawyer fees, while the smaller pieces can include inspection costs and registration fees.
Understanding the steps in the home-buying process can not only help buyers make more informed decisions but also ease any tensions they may have. Purchasing a home comes with a lot of planning and budgeting. Knowing what to expect and having the right partners to help you, buyers will easily find the right house for them without going over their budget or encountering any unexpected problems.