Buying a home is the largest single financial decision most people will ever make. In order to make the correct decision, it is important to understand the process of buying a home. Here is the process summarized for you:
1. Get pre-approved.
Find out what you can afford either from your bank or from a mortgage broker. If you have a good relationship with your banker, go there, but it pays to shop around to get the best mortgage available, and most mortgage brokers will do that for you at no cost. Being pre-approved helps you in the negotiation stage.
2. Talk to a Realtor.
Talk to 2 or 3 realtors and pick the one you feel is the most professional and who you are the most compatible with. The actual agency he or she works for isn’t as important as feeling a sense of trust with the individual person. Let them know what you are looking for and what you can afford. FYI, you do not pay the realtor directly for his or her services as a buyer. A realtor gets paid out of the proceeds of the sale of the home via the seller.
3. Go Look at Homes.
This is the fun part! You should, however, limit the number of homes you look at in a day to 3 or 4 and stay in the parameters of what you need and can afford. I like my clients to be pro-active and encourage them to search the www.mls.ca website, and to let me know of any For-Sale-By-Owner homes that they might be interested in so I can contact the seller on their behalf.
4. Make an Offer.
This is where your realtor starts to earn his money. The things to negotiate here are the deposit and price, the closing and possession dates, appliances and other included items. Unless you are going in at full price, expect a counter offer situation. Your realtor will put in conditions or subjects on the contract that are designed to protect you.
5. Start Removing the Conditions.
Once an offer is accepted, the conditions on the contract will have to be removed before it becomes a “firm” deal. Your banker/mortgage broker will start arranging the financing, an appraisal will have to be done, and the house will have to be inspected by a qualified inspector for defects and bugs. As the buyer, you will have to approve and sign off on each condition. Your realtor is responsible that all of this is done correctly and on time.
6. Select a Lawyer/Notary Public.
If you do not have one, your realtor can help you select a lawyer or notary public to do all the necessary documentation, registering and conveyancing, and disbursement of funds. Shopping around can save you a couple of hundred dollars!
7. Completion Date.
This is the day money changes hands and the house gets registered in your name in Kamloops at the Land and Titles Office. You will have to sign all the documentation, which can seem never ending, and pay whatever down payment and closing costs you owe.
8. Moving Day.
A lot of planning and forethought will make for a much smoother move. Change your address at the post office, your bank, and arrange for utility hook-ups a week before you move.
9. Congratulate Yourselves and Enjoy Your New Home!
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