The Simple Guide to Buying A Home

The Simple Guide to Buying A Home

Buying a home, getting a mortgage are acts of real estate investing and can be a confusing, so I’ve developed these guides as a simple step by step resource that will help you through the process of home ownership, home buying, especially for first time home buyers, and you can take this as a first time home buying tip resource to keep for your reference. We all have home ownership dreams and we can achieve this by setting home ownership goals, which include reading guides and educating yourself about home ownership matters.

Here is a brief summary of your home ownership journey:

First, is to talk about mortgage. Real estate investing requires financing, you have to obtain a pre-approval before you can begin the search for a home. This is the foundation of your home ownership success.

In your home ownership journey, having a realtor will save you a lot of time as they will be able to narrow down your search within the criteria you are looking for. Some of your criteria may include:

  • Price,

  • House size,

  • Lot size & type,

  • Location in relation to schools, work and shopping, and so on.

Home ownership is possible if you follow the home buying tips here listed.

Get Ready to Submit an Offer

Once you have found the home you want, you can begin the negotiating process by making an offer. Your realtor will give you guidance on any subjects you may want to include in the offer.

Even though you have a mortgage pre-approval, you will still want to make the offer subject to financing as all lenders will only give you a final approval once you have selected the property and submitted all of the required documentation to them. Once you and the seller have agreed on the price and terms you can then move on to next step

Offer Acceptance - After your offer has been accepted by the seller you will need to satisfy all of the conditions that the lender has placed on the approval. Some of these may include: appraisal on the property and income confirmation. Your mortgage lender will work closely with you during this time to make sure all conditions are met so your approval is in place in a timely fashion.

Subject Removal - Once you have a firm approval from your lender and have satisfied all of the other conditions that you placed on your offer you can remove the subjects. This means that the contract becomes firm and binding. Now you are getting closer and closer to your home ownership dream that you set on your home ownership goal. At this time, your realtor will require a deposit from you to place in the trust account.

After Subject Removal - After you have removed subjects you should contact your lawyer/notary and provide them with a copy of your firm contract. At some point after you remove subjects & satisfy all lender conditions, the lender will then send mortgage documents to the lawyer. In the meantime, you will need to book an appointment with your lawyer to sign the legal documents for the purchase and mortgage.

Please Read The Fine Prints - Your lender may require that you attend their office to sign documents, try and read to understand before signing. In addition to this, all clients will need to attend the office of their lawyer/notary to sign the legal documents for the mortgage. One important thing you will need at this time is to obtain an insurance policy for the home. All lenders will require that you have insurance in place for the replacement cost of the building. This is just to show that home ownership is key both to you and your lender.

On Completion - Your lawyer/notary will require full payment for items outstanding in the form of a draft no later than the morning which your deal will complete. Items which require payment may often include:

  1. Property purchase tax (if applicable),

  2. HST (if applicable),

  3. Legal fees,

  4. Down payment, and so on.

Home possession is next in line for you! This now makes you a new home owner and take responsibility of property ownership. After the completion date is the home possession date. The possession date is when you have the right to move in and is usually two days after the completion date.

Congratulations, you have achieved your home ownership goal!

Thank you for reading, if you find this article useful please share with other first time home buyers who may benefit from it. You can also reach me for a One on One  should you have any clarification or questions you may have.

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