Steps To Buying A Home
Determine Your Budget
How much do you want to spend? How much can you afford? Consult a Mortgage Broker to help you determine this, and obtain a Pre-qualification Financing letter. This letter, issued by your Mortgage Broker will not only indicate how much the bank will likely be willing to loan you, but also will assist to show you are a qualified, serious buyer.
Select Your Broker
Working with one professional broker is wisest. Personal referrals help if you've never purchased a home or are new to a particular area. When you commit to one broker and are serious about purchasing a property, ask them for their undivided attention and commitment to finding you the best property. That broker, knowing you are committed, should go the extra mile to please you.
Your Wish List
What do you want from your living space?
The more you see, the more you learn. By working with an experienced, knowledgeable broker, you could save a substantial amount of time, only looking at Homes that meet your specific needs, could be the difference between finding your home and missing the opportunity. Most buyers if working with a good broker see between 10 and 30 homes, depending on market conditions and your specific tastes and needs.
Negotiating The Deal
Negotiating the Home + getting an accepted offer: Negotiability varies from home to home, depending mostly on market conditions. Until you have a fully executed contract from both the seller and buyer, you do not ‘have’ the Home. Generally, properties are delivered ‘as is’ with working appliances, unless your agent negotiated additional terms in the contract or the BINSR. If you wish to keep any fixtures or furnishings, you should have these clearly itemized and specified in the contract of sale or a separate bill of sale.
Signing + Depositing Earnest Money
Once the signed contract is received, Earnest Money, in the negotiated amount, will need to be deposited into an escrow account. Contingencies in the contract can include Financing, Appraisals, Closing dates, etc. Transfer of ownership, however, only takes place upon closing.
Every home buyer has their own priorities when choosing a mortgage and lenders have a wide range of competitively priced loan programs. Some are interested in keeping their monthly payments as low as possible. Others are interested in making sure that their monthly payments never increase. And still others pick a loan based on the knowledge they will be moving again in just a few years. You will have many questions when you are purchasing a home, and having an experienced, responsive mortgage broker assist you can make the process much easier.
The managing agent, banks, etc., co-ordinate a mutually agreeable time and location on the closing date per the contract. Your broker will advise you of where to be, when and with what. At the closing, the buyer pays the additional down payment, bank fees, taxes, title insurance, etc and signs various documents to transfer ownership of the property. The process ends with congratulations, and keys to your new home.