Step 1: Make Sure the Finances are in Order
The finances involved in home buying are going to be as follows:
Having enough for a down payment.
- Homebuyers in Canada can purchase a home with a minimum of 5% of the sale price of the home. Many try to have 20% as this works to their advantage financially.
Arranging for the Mortgage:
- Home buyers have an opportunity to get pre-approval for a mortgage amount that they can qualify for. This pre-approval remains in place for a specified number of days. This allows the home buyer to know what budget they have to work with when looking at homes to buy.
Closing Costs:
- New home buyers don’t realize that there could be substantial closing costs that they must pay for by closing day. The average for this is about 4% of the selling price of the home.
Moving Day Costs:
- There are costs involved with moving, and new home buyers should be aware of these so they will have funds on hand to pay for them.
Home Buying Incentives:
- New home buyers can also check to see if there are any government home buyers incentives available to take advantage of.
Step 2: Finding the Right Professional
First-time homeowners fare much better if they rely on the right professionals for their home buying process. The first one to be considered is the real estate agent. These experts have a lot of resources that they can rely on to help home buyers find the right home for them.
Step 3: House Hunting
Finding the right home that meets all of the criteria is perhaps the most exciting part of the home buying process. Relying on the realtor will make this part stress free. Several homes should be looked at before making the final decision to purchase
Step 4: The Offer
The real estate agent will draft the offer according to the buyer’s wishes and then negotiate this with the home seller.
Step 5: The Legal Process
Once the offer has been accepted, then the home buyer must choose a lawyer to deal with the closing of the house. The lawyer may require several documents to do this. It is up to the home buyer to ensure the lawyers get everything that is needed.
Step 6: The Closing
The closing is the day that the lawyer finalizes the transaction. This has to be done according to the closing day agreed upon in the purchase contract. On closing day the money is transferred from the buyer to the seller. The seller turns over the keys to the buyer’s lawyer who in turn gives them to the buyer.
