If you are emotionally ready to make this move to purchase your dream home here are a few easy steps to purchasing it for you and your family. Make about an hour of your time available to visit a mortgage broker of a mortgage bank specialist. This visit will help you understand the budget that you can spent towards your new home. Talk to the representative of a bank about your plans to purchase a new home, ask him or her to approve you for a certain amount based on your income, your expenses and your personal credit history. You will have a clear understanding on a amount that you can spent towards your new house. Bank approval is usually for 3 months from the approval date.
Next step, contact a Realtor, discuss your financial abilities and the neighborhood that you prefer to purchase in. Choosing the neighborhood is tough by itself, but usually it depends on location of your job, your close family members, maybe school of your children and off course the budget. Sometimes location that you prefer the most is out of financial reach for you, however the Realtor will give you his or her suggestion on were to look at the properties based on your desires. Also don’t forget to discuss type of property that you would like to see, maybe you would like a condo or a semi, or maybe detached house is the only type of a property that will satisfy you and your family, do you want a 5 bedroom or 3 bedroom is enough for you, finished or unfinished basement.
Notify your Realtor about your preferences and he or she will choose whatever there is on the market available and you will go to your next step witch is going out to see the properties. Schedule a day and time for your Realtor to show you 5 or 6 properties that fit your description. Visit each one of them, and remember square footage doesn’t always matter so much, some layouts are better that others, and most important is how you personally feel in the house. Most people feel the right energy in the home they want to buy, almost like it has been theirs forever, and size and layout doesn’t matter so much anymore. If a home gives you that feeling, and you fall in love with it instantly, notify your Realtor and proceed to the next step witch is presenting your offer.
Signing and offer is nerve-racking and exiting. Discuss with your Realtor the price that you will offer, deposit, closing or possession date, and conditions that you will include, also chattels and fixtures that are included or excluded in the price. The conditions are usually standard, like financing, inspection and status certificate for condominiums. Usual time for financing and inspection is 5 business days from acceptance of the offer, and 10 business days to receive a status certificate. Sign an offer and your agent will present it, and negotiate the price in your behalf. Unfortunately if there is more than one offer, usually there is not much room to negotiate and in some cases properties are sold over asking price. Your Realtor will guide you in the right direction.
After the price agreement you will have to give a deposit made out to a listing brokerages trust account in the amount that you agreed on. You have 5 banking days to do the next step which is financing and inspection. Take you purchase and sale agreement to your mortgage broker, he will ask some personal document, and will complete your approved mortgage within 3 days. You will need to hire e residential lawyer, that will close the transaction for legal aspect. Your mortgage broker will send your mortgage documents to your lawyer, you will have to sign it twice ones at your mortgage brokers office and ones at your lawyers office.
Book you home inspector to inspect the house, if you don’t have one have your agent book the one that he knows. Remember inspection has no warranty and only good for the time of inspection. Inspector will spent his time checking roof, plumbing electrical appliances…He will issue the report to you were everything will be written out. If inspection is bad you have 2 options to back out or to have seller fix everything, which is usually the best thing, especially if you are emotionally evolved with the home. If it is a condo that you are buying, have your lawyer check the status certificate, to see if corporation is in good standing. It will show you, the maintenance fee, status of a building and reserve fund. Lawyer will discuss it with you and notify if anything is wrong.
Next step is to waive all above conditions with your agent and proceed to closing. Waiving them meaning no way back and if you do your deposit can be lost to the seller for compensation.
Final step is pre- closing inspection that you have to do yourself, especially if you have asked seller to fix whatever bad was found during home inspection, notify your lawyer if something is not fixed and have him solve it. Go to your lawyer, sign all the document, and by 6 pm on the closing day pick up your keys and congratulations, enjoy your dream home, and remember you have 24 hours to report to your lawyer if there is something wrong in the house, for example fridge doesn’t work.