Saturday, June 30 2018 – First Time Home Buyers Guide
I meet a lot of First Time Home Buyers who are just getting started in the home buying process. This can seem like a daunting endevour for buyers who have never undertaken this process
before. As such I thought it prudent to go through the 5 steps to purchasing home
1) Meet with a Mortgage Broker or Mortgage Agent
The first task when buying a home is to ensure that your financing is in place and get a pre-approval. When you meet with a Mortgage Broker or Mortgage Agent they are going to go through all of your finances with you to make sure that you will be approved for a mortgage.
Your Mortgage Broker or Agent will discuss what you can afford, monthly mortgage payments, ask about your finances (down payment, yearly income, etc) in order to assess whether or not you will be approved. They will also go over how much of a mortgage your income can support. At this step it is important to have your tax returns in hand, as the majority of mortgage lenders (all except for Private Lenders) will want to see your tax returns.
Your Mortgage Broker or Agent will also go over the savings gained from the First Time Home Buyers Program. The Canadian and Ontario Governments have Programs in place to help save you money on the purchase of your first home!
2) Meet with a Real Estate Agent
The next step is to meet with a Real Estate Agent. Your Agent is going to ask you what type of home you are looking for, what is your budget (which you already know from your Mortgage Broker or Agent), what area of London Ontario and area you want to live, and what kind of specifics you are looking for in a home.
The Agent will outline how to search for a home and give you an idea of what types of homes and in what area can expect to purchase that are within your budget.
3) Search for a Home
This is probably the most lengthy portion of the home buying process. For most people their first home purchase is the biggest financial decision they have ever made.
Finding a home can take some time. While it is important to be realistic about your expectations, it is equally important to note that you will be living in the home for at least the next few years. Find something that you like and that you can picture yourself in for the next few years.
4) Submit an Offer to Purchase
Once you decide on a home you will submit an Offer to Purchase with your Real Estate Agent.
At this point you want consider what type of conditional offer you want to put in on the home. Do you want a home inspection? Do you want the appliances included? Do you want the roof fixed? Is there anything else in the home you want to be included? These are all questions you want to go over with your Real Estate Agent.
Prior to submitting the offer, and I cannot stress this enough, double check with your Mortgage Broker or Agent to ensure that you are approved for purchase of the home.
5) Prepare to Close
Once the offer has been accepted and a date has been set for the deal to close it is time to start preparing for the closing date.
If you have not done so already it is important to get all of your financial documents to your Mortgage Broker or Agent. These will often include tax returns, employment letters, and recent paystubs. Everything that will be needed was discussed at the Pre-Approval stage so there should be no surprises. These documents should be submitted right away so you know the financing portion of your purchase is locked in stone.
If you do not already have one you will need to find a lawyer who will handle the final transaction. The lawyer will work on your behalf to receive the funds from the lender, transfer your funds to the seller, register your name on the title, and ensure that everything goes according to plan.
6) Closing Day!
This is the exciting part! On the day of Close you will visit your lawyer’s office once everything has been completed and pick up the keys to your new home.
This is an ideal scenario for how a first time home buyer purchase is completed. It is important to ask as many questions as you can from your Mortgage Broker or Agent, as well as your Real Estate Agent and your Lawyer. These three will help guide you through the home buying process.
If you have any questions about the home buying process please do send me a text or give me a call, 519-860-2102, or