Step 1. Contact your Mortgage Broker
Working with a Mortgage Professional will be the first step in your journey to purchasing a home. Your mortgage broker will be able to explain the whole home purchase process in detail so that you have a clear understanding of where you are at and what is next at any given time. Your mortgage professional will be able to discuss your current financial situation with you in detail. This will help you understand the amount that you are qualified for before you head out shopping with your real estate agent. Great mortgage professionals will always ensure that your mortgage is structured so that it is aligned with your overall budget and expectations in regards to monthly expenses.
During this process your Mortgage Professional will collect an application, outline the supporting documentation that will be required, and will place a pre-approval and rate hold to ensure you are protected while you shop for a home.
Step 2. Obtain a Real Estate Agent
Ensuring that you have a Real Estate Agent that is knowledgeable and that you are comfortable with is extremely important. Like Mortgage Professionals, there are lots of options. Having an agent who will take the time to walk you through the process and who thuroughly understands the market in which you are looking to purchase can save you thousands of dollars off of your purchase price.
Ask about our trusted realtor list.
Step 3. Home Shopping
The next step is to head out with your Real Estate Agent to start to look at homes. You want to review several homes so that you have a good idea of what is currently on the market at your price point. The age and the location of the home usually have the greatest impact on the price. Once you find a home and have an accepted offer on that home you then move to the next stage.
Step 4. Subject Removal
When you place an offer on a home, you will agree with your real estate agent on several different subjects which are to be written into the offer. These subjects are for your benefit and you usually arrange for a 7-10 day window to have these subjects completed. Once your subjects are removed you are required to place a good faith deposit on the property. The deposit will become a part of your down payment on the property and is held In Trust by your realtor’s brokerage.
Two of the most common subjects are:
a. Subject to Financing – This allows your mortgage professional to obtain a firm mortgage approval from the bank in regards to your application. As your personal income has already been verified this portion is more to confirm that the property is acceptable to the lending institution. Your mortgage professional will give you the go ahead to remove this subject.
b. Subject to Inspection – Depending on the property you may opt to have a home inspector inspect your new home. The inspector will thuroughly review the construction of the property and can point out any defects that may be costly in the future. The inspections sometimes result in renegotiating the price of the home based on what is found to be in need of repair.
Step 5. Time Prior to Completion
Once your subjects are removed you will then be waiting for your completion date which is where the money will change hands and you will officially become the owner of your new home. During this time there are several items which you should be considering.
a. Preparing for the move – Arrange for a moving company or assistance from friends or family. Packing boxes, setting up your Hydro, Cable, ect.
b. Selecting a life insurance product. As you are taking on a large amount of debt it is important that you protect yourself and your loved ones in the unfortunate event that something were to happen. Your mortgage professional can discuss this with you in greater detail as well as provide contact information for insurance planners if a more in depth review is required.
Step 6. Meeting with your Legal Professional
Usually 2-3 days before your completion date you will have an appointment with your designated legal professional, this can be a lawyer or a notary. They will walk you through all of the registration documentation and answer any questions that you may have. They will send you a Statement of Adjustments which outlines the total cost of your purchase as well as the proceeds from the mortgage. You will be required to bring a certified bank draft for the remaining amount of funds outstanding.
Step 7. Welcome Home!!
Everything is at this point completed, you will receive the keys to your new home and will no longer be paying someone else’s mortgage!!
Get Tyler to contact you
