Complete Guide For Buying A Home
Buying a house is a long process and it could be frustrating. Specially as a first-time home buyer, it can be stressful because you will have many choices to make. To be sure that you make the right decision for the biggest moment of your life, take a time to sit back, relax and learn the whole process with us. Please note, this article is only used for information, not intended to constitute legal advice.
Step 1. Make A Budget Plan and Get Pre-qualified For A MORTGAGE?
The very first step of course is to make sure you have enough budge. If you are planing to get a mortgage like most of the people did, you should find yourself a professional mortgage agent or go to a preferred bank branch. To be qualified for a mortgage, your lender will check your income, debts, downpayment and credit history. Although all of them are important, one thing you should always keep in mind is to Make Sure You Have A Good Credit Score! Once you get a pre-approval, it will included a guarantee interest rate for 90 days normally and you will know how much mortgage you can get approximately. This is very helpful in terms of deciding the price range for your new home and narrow your search focus. Also, by doing this, you will know financial status and any invisible debts that you have before should be paid out!
Step 2. How's your dream home look like in which LOCATION?
What are your preferences? What are the must have and absolutely not haves in your home? Before jumping into a pool of house choices, list everything you want down. The list can include house type, features, appearance, you name it. Beside those, you would also want to know which location you prefer. Hiring a professional agent can offer you advice on which location to choose for, but if you want to do it yourself, be prepared to study a lot. Some of the factors you should consider are: surrounding school, environment, security, working distance, community services, and public transpotation. A professional realtor will tell you which location best suits your need.
Step 3. It is time to Hunt Your House!
Now you have got your mortgage pre-qualified, know your preference, and picked the best realtor to work with, you are ready to going to the most exciting part, house hunting! This steps require to go over the listings, previewing properties, looking at the criteria, and plan out the perfect routes for the actual visiting. A good realtor will send you a list of properties to preview electronically. When visiting a property, make sure to see the location of the house in the community and its appereance. They can affect the value of the house and also tells you how old the house is. As realtor, we will make sure customer know the house in and out.
Step 4. OFFER!
Congrats! you finally find your dream house. Now it is time to call the listing agent to regiser, if you cannot reach them, make sure to leave your contact number.
The offer process is both exciting and long. Usually, It begins with the Agreement of Purchase and Sale (APS). The APS is a legally binding document which contains everything from the price inclusions you want, to your ideal closing date (the date you take possession), and conditions that need to be met. Once you’ve submitted your offer, the seller can accept it, reject it or sign back a counter offer.
Usuallym the conditions of the agreement includes:
1. Financing - Buyer should get their mortgage approved before the due day or the seller will have the right to cancel the agreement.
2. Inspection - Buyer can inspect the house and if they are not satisfied they can cancel the agreement.
3. If the property requires maintainance fee, then a status certificated should be provided in 10 days.
In any case, the buyer wants to cancel the agreement, they need to provide legal documents.
Step 5. Hire A Good Lawyer
Lawyers help you deal with all relevant law enforcement issues after you have signed the sale and purchase agreement. If the buyer and the seller have any legal problems in the performance of the contract, they can have their solicitors help solve the problem. (This section is merely an exposition of the information we understand, does not constitute any legal advice. For any real estate legal questions, please consult a professional lawyer)
1. Usually, a lawyer will conduct a full investigation of the properties you purchase. Including the property history of the property, whether the owner now owns the title, whether the property is used as a mortgage or other property (Lien), whether there is an incomplete disclosure of the property right in the property (Easement ) And any other Encumbrance that prevents you from owning the Clear Title of the property;
2. If you are purchasing a condominium that requires administrative fees, the seller should provide you with the latest Status Certificate within 10 days, as opposed to the standard Ontario home purchase contract, and you have two working days Of the time to have your lawyer check the report, in general, the first report to view the cost of the lawyers have been included in the fee.
3,Title Insurance (Title Insurance). If there is any problem such as fraud, forgery and misrepresentation by the seller or other parties in your purchase, PROPERTY INSURANCE is your last resort and it will ensure that you do not get into a huge Debt. For more information about Property Assurance Insurance, you can consult a lawyer.
4, Check the bank or non-bank financial institutions loan documents. Lawyer will explain the specific terms to you about the loan documents.
5, Calculate the total cost paid by the buyer. In general, buying a home in Ontario, buyer will have to pay Ontario's land transfer tax in addition to paying back the principal and legal fees.
6, Complete the registration of the renaming of homeowners, etc., to help buyers and sellers to complete the final transaction. On the delivery date, the buyer's lawyer sent the balance of the buyer and the bank loan to the seller's lawyer, and at the same time dispatched officers to the Land Bureau to handle the property delivery formalities. When the buyer's lawyer gets the key from the seller's lawyer, he immediately notifies the buyer to the law firm to congratulate the buyer on becoming the new owner of the house.
Step 6. Close the deal!
Before closing the deal, re-visit the house and make sure there is no more problems to enclosed.
One or two days before closing day, the lawyer will notify buyer to prepare the first payment and other costs to buy a house, to lawyers for payment. Other costs include: land transfer fee, land tax, solicitor's fees, etc. Usually, the lawyer will have an exhaustive list that will tell the buyer to go to the bank to open a bank draft in accordance with the amount of the list. When the buyer meets the lawyer, the lawyer explains in detail the details of each payment on the checklist and other issues related to the law. Buyers can also ask lawyers about the issues.
The lawyer will send all the formalities for payment, registration of land bureau and transfer of property right after. Buyers usually do not get the keys until after three or four in the afternoon.
Now congrats! You are ready to hunt you house! If you have any more question or simply looking for the perfect realtor, contact us 416.858.3320