How Do You Buy a Home? 10 Essential Steps

You are starting to think about becoming a homeowner and you probably have a lot of questions about how to buy a home in Canada How do you buy a house, on specific questions about financing, type and location of the house, how to make and negotiate an offer. To make the potentially complicated process easier, we covered how to buy a home in 10 steps.

How to buy a house in 10 steps

1. Choose a real estate agent that suits you. A home is a huge investment. So work with a broker who is knowledgeable, professional, and responsive. Treat your search for the right agent like an interview. Meet with a few different agents, ask lots of questions, and check references. Here is a list of 7 questions to ask an agent before committing.

2. Know your budget. As you already know, home buying is going to be expensive. Knowing how much it costs and how much you can spend is a crucial step in making a smart investment. Take into account your lifestyle, income, and any current debts you carry. Are you safe in your job? Do you plan to make major life changes in the near future, such as: B. a job change or the growth of your family? Be aware of the financial implications this could have.

3. Explore mortgage options and get pre-approved. A mortgage pre-approval tells you how much your lender is willing to lend you based on a number of factors, such as: B. Your credit rating, your income and your debts. The lender also guarantees the current interest rate for up to 120 days (the time may vary depending on the lender), so you have the freedom to go looking for a home knowing that you are safe from interest rate hikes. If prices fall, so should your guaranteed price fall. In addition to the interest rate, consider the terms of the mortgage.

4. Start house hunting. Granted, this step has a lot of substeps, but let’s narrow it down a bit. While the old adage “location, location, location” still applies to good real estate investments, the recent trend towards remote workplaces has given people more flexibility in answering the all-important question, “where?” Then comes the what: what kind of home do you need to live the way you and your family live? Condos, townhouses, and condominiums each offer different benefits. So choose something that is right for you over the next five years. Create a remax.ca account and register to receive offers that match your criteria when they hit the market.

5. Schedule demonstrations. Did you know that your agent can show houses in person or virtually? Virtual demonstrations have been around for a while, often used for purchases by overseas buyers. However, due to the coronavirus pandemic, it has picked up speed with local buyers as well. Regardless of how you view the offers, keep an eye on the price. Think about your budget and the must-haves outlined in Step 4 above.

6th Make an offer. You have found the home you want in a place you like. Make an offer to buy now at a price and on terms that are acceptable to both you and the seller. Here you can get the upper hand with an experienced broker. Different market conditions require a different approach – a seller’s market can mean a lot of competition and requires you to enter at a price or a price with few to no conditions, while a buyer’s market means you have a choice and time on yours Side is. Rely on your agent for how best to deal with the situation.

7th Get a home inspection. Regardless of the market, this is a condition that you should maintain as part of your offering. The home inspection is designed to identify existing or potential underlying problems in a home, alert the buyer to risks and give them leverage in negotiating a discounted sale price. Your home inspector will check systems that are visible without opening walls or floors, including heating, plumbing, electrics, the roof and foundation. The inspection should take about three hours and will cost a few hundred dollars depending on the size of the house.

8th. Sign the contract. Depending on the conditions agreed in the purchase and sale contract, the closing period is usually 90 days, but can be between weeks and months. The buyer has some important obligations during this waiting period. Once the offer is accepted, there is usually a 10 day “cooling off” period during which you take all necessary steps in terms of financing, home inspection and whatever else is required before officially closing the deal. Your mortgage lender will need a copy of the offer to make sure it matches your pre-approved funding level. After the 10 days have passed – with adjustments or repairs done to your satisfaction – your broker will close the deal and your attorney will process the paperwork including mortgage documents with your lender. All of this indicates a final date of actual legal ownership: the actual final day.

9. Update utilities, broadcast services, and address changes. Keep track of electricity and credit card bills, magazine subscriptions and other regular postal or standing orders that you receive at your current address during your blocking period. Let them know about the change of address before your deadline. Check with your doctor and dentist as well. For family and friends, you can easily send a change of address card by mail or email. However, there are a few more steps you can take to inform government agencies.

• Click here to change your address with the Canada Revenue Agency
• Contact your local Department of Health and Department of Transportation to find out how to change your address on your health card and driver’s license.
• Forward emails to your new address by visiting the Canada Post website or your local post office.
• If applicable, it is important to change your address for the employment insurance program, which you can easily do here.

10. Move into your new home! If you are moving during the busy season (usually summer) make sure you have booked a moving company on time. If you do it yourself, book the truck, get help, and make sure you have enough packing materials. Here are some packing tips:

• First, put the items you need in a clear plastic container
• Pack your plates vertically to make them less likely to break
• Snap a photo of how your electronics are connected so you know where the wires go
• Wrap your fragile items in clothes to save on bubble wrap
• Protect your glassware by wrapping it with clean socks

.

We hope this home buying checklist helps. If you still have questions about buying a home or are ready to start the process, take advantage of the knowledge and experience of a RE / MAX agent to walk you through every step of the process.