Buying Your Home

Before you even go looking for a home, you have to understand your needs. Think about the type of place you’re looking for. Are you looking for a lot of bedrooms and washrooms for your family? Do you want a pool in the backyard? Do you want to live close to a school or a mall? These are just some of the things you have to consider before start looking for a new home.

You also have to familiarize yourself with different types of ownership as well to help narrow down the perfect home. Freehold is when it’s all yours, a condo is when you take care of the inside and pay your fees to an association, and co-op is similar to a condo but you rent a unit in the building and pay maintenance and repair fees.

Once you have narrowed down some qualities, it’s time to go looking for a home!

There are thousands of real estate agents, so how do you chose one that’s right for you?

You have to pick carefully. They will be acting as your representative and you will need someone to look out for your best interests. You will need someone that you can trust and someone who understands what you want.

There are a few ways to look for your perfect Realtor:

• Jot down some names and numbers that you find on “For Sale” signs
• Ask friends and family for a recommendation
• Visit one of the local offices in your area

They have to be a trained professional who knows your area inside out. A great agent is someone who offers you quality services to help you accomplish your goal.

Yes, there is a difference between pre-qualification and pre-approval.

Pre-qualification is a less formal process involving no credit checks. It's based entirely on the documentation you submit. You can get a pre-qualification done online or over the phone. Since it's based on your documentation and not on official checks done by the lender, it's a rough estimate of what amount you'll be pre-approved for.

A pre-qualification will give you a very rough picture of what budget you'll have at your disposal for your next home purchase. Or at least a good-enough estimate so you can start browsing homes online. It indicates what you can afford, so you don't set high expectations.

! Do not submit any offers if you're only pre-qualified. You should start submitting offers only after you've been pre-approved. Most sellers will not take your offer seriously without pre-approval, and you might lose a home you really liked.

You can start the pre-approval process at your bank. However, it's ok to shop around and see if any other lender can offer you better terms. A mortgage broker can help you find the best possible option.

If you want to expedite your pre-approval process, you can ask your preferred real estate agent to help you. Most agents, like myself, have established contact networks with a few mortgage brokers and have our contacts within individual banks.

Remember, even getting pre-approved DOES NOT guarantee you can take out the stated amount. Also, if interest rates change between pre-approval and purchase, you must repeat the process. In this case, your lender will likely adjust your pre-approved amount.

It's not wise to start looking at homes without getting pre-approved. You risk falling in love with homes that could be out of your reach. It will then become challenging to find a property you'll love after seeing all those fantastic homes that are out of your budget.

There are many ways of finding that dream home! First, before you go shopping you have to make sure you are also financially ready. Make sure to have a budget when you go shopping. You can use my very handy affordability calculator by clicking here.

One thing to keep in mind is your down payments. This is a percentage of the total cost of a home that you’ll need to pay. The more money you put down, the more you’ll save on monthly payments and cost of borrowing. Another important aspect is getting pre-approved for a mortgage. When the lender approves you for a mortgage, it gives you an idea of how much you can afford to buy your new house.

Keeping these things in mind, you are free to go window shopping! You can go searching for houses according to the different neighborhood surrounding you, check newspaper listings, websites, or even drop by any open houses that are being held in your area. Looking for houses can be really fun and exciting! You can browse listings using the area search on my website, here.

Now that you’ve found the house that you are set on, it’s time to make an offer. Not all offers are the same and here’s where your real estate agent comes in. They will help you with specific terms and conditions that will be specified in the offer like the price you want to pay, financing conditions, or other things like inclusions and exclusions.

Not only is it about the price of the house but you have to carefully look at the other details included in this sale. Appliances, chandeliers, or even minor renovations can also be part of the deal. Shorter or longer closing dates can also be specified in the offer.

If there is something in the offer that doesn’t satisfy the seller, counter offers or negotiations can also be presented to help get a price that you think is fair.

There will be closing costs associated with the sale that need to be paid either by or on the closing date. It can include mortgage application fees, inspections, and legal fees. But once that’s taken care of, you get your new house.

Congrats! Welcome to your new home! You're all ready to move in!