The following is a general guideline that can be used by first-time home buyers to assist you throughout the process to identify and purchase your home:
FOR THOSE SEEKING FINANCING FROM A BANK OR CREDIT UNION
- Determine what your preferences are in terms of # of bedrooms and type of construction desired
- Determine the most appropriate location as it relates to your readiness and/or ability to commute, and the area and surroundings in which you wish to live
- Do comparative checks with various financial institutions to find out the following information, and to determine which lending institution is best for you:
- Required submissions for loan application
- Interest rate being offered on Mortgage loans (note that less is not necessarily best, as some institutions offer an initial low interest rate which is subject to change and “may” increase in the short term). Seek to find options for fixed interest rate.
- Maximum loan term offered
- Find out what maximum loan you are qualified for based on your existing income and expenses (if possible seek Pre-Qualification or Pre-Approval)
- Estimated Required Monthly Payment based on the maximum you are eligible to obtain
- Establish what would be your required upfront contribution
- If you have other existing debts with various entities, you may want to consider refinancing and amalgamating your loans to just 1 institution – your monthly payment to one Creditor may be less than having various Creditors
- Identify a qualified, flexible and dependable Realtor to guide and assist you in the search for your home
- Provide your Realtor with the information on item #’s 1, 2 and 3(d) so that he/she can assist in finding a home that is appropriate for you.
- When a home is identified, make arrangements with your Realtor to view the property to determine whether or not the property meets your criteria
- Feel free to view more than 1 homes until you are able to find a property that matches your preferences as stated in # 1 & 2 above
- Once you have identified a home of interest, make an offer to the Realtor so that he/she can lobby/negotiate with the Seller on your behalf. If your offer made is too low, the Seller may wish to make a counter-offer. You reserve the right to make another counter offer or to accept or reject the offer made by the Seller.
- Continue the process in #’s 6 & 7 until an offer is accepted and approved by both the Seller and yourself.
- Once the purchase price is accepted by both parties, your Realtor will thereafter, prepare a Sale Agreement to be signed by the Seller and yourself, which you will present to your Loan Officer to start/continue your loan application process.
- In most cases, at this stage you will be required to pay 10% of the selling price upfront as a deposit towards the purchase price, which will be held in Escrow (safe keeping) until the close of the sale.
- Balance should be paid within 2 weeks, or a term agreed upon within the Sale Agreement; allowing time for loan processing and approval.
- During the Escrow period (the 2 weeks processing period) you have the right to do any additional viewing or inspection/valuation of the property as required.
- Balance of funds to be paid to the Seller or his/her Agent upon loan disbursement, at which time all transfer documents will be executed.
FOR THOSE HAVING FINANCES READILY AVAILABLE (ON HAND)
- Determine what your preferences are in terms of # of bedrooms and type of construction desired
- Determine the most appropriate location as it relates to your readiness and/or ability to commute, and the area and surroundings in which you wish to live
- Identify a qualified, flexible and dependable Realtor to guide and assist you in the search for your home
- Provide your Realtor with the information on item #’s 1 & 2 so that he/she can assist in finding a home that is appropriate for you.
- When a home is identified, make arrangements with your Realtor to view the property to determine whether or not the property meets your criteria
- Feel free to view more than 1 homes until you are able to find a property that matches your preferences as stated in # 1 & 2 above
- Once you have identified a home of interest, make an offer to the Realtor so that he/she can lobby/negotiate with the Seller on your behalf. If your offer made is too low, the Seller may wish to make a counter-offer. You reserve the right to make another counter offer or to accept or reject the offer made by the Seller.
- Continue the process in #’s 5 & 6 until an offer is accepted and approved by both the Seller and yourself.
- Once the purchase price is accepted by both parties, your Realtor will thereafter, prepare a Sale Agreement to be signed by the Seller and yourself.
- At this stage you will be required to pay 10% of the selling price upfront as a deposit towards the purchase price, which will be held in Escrow (safe keeping) until the close of the sale.
- Balance should be paid within 2 weeks, or a term agreed upon within the Sale Agreement.
- During the Escrow period (the 2 weeks processing period)You have the right to do any additional viewing or inspection/valuation of the property as required.
- It is strongly recommended that you contract the services of a legal individual to carry out a title search to ensure that the title is clean and clear
- Arange with the same legal individual to prepare the necessary transfer documents to get the title transferred in your name.
- Balance of funds to be paid to the Seller’s Agent after you are satisfied with item #9 above, at which time all transfer documents will be executed.
If you choose the right Realtor, this process can be a smooth and easy transition.
LET US REPRESENT YOU…CHOOSE OUR REALTOR…..
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