This Home Buying FAQ page is your best option and your first stop if you are considering purchasing a property in a near future
What is the first step of the home buying process?
If you plan to finance, getting pre-approved for a mortgage is the first step of the home buying process. Getting a pre-approval is generally a quick process and demonstrates that you are a serious buyer to both your Realtor and the person selling their home. A pre-approval may be required before you can view a home in person or put in an offer.
First, you need to know how much you are approved to purchase. Knowing how much home you can afford narrows down online home searching to suitable properties, no time is wasted considering homes that are not within your budget. Pre-approvals also help prevent disappointment caused by falling in love with homes out of your range.
Your Lender will help show you a clear picture of what is financially required to buy a home. You’ll know how much money is required for the down payment and closing costs. If you have credit concerns they can also help you put a plan together to increase your credit score.
I have several preferred Lenders that can help walk you through this process if you are in need of assistance.
I already own a home, can I sell and buy a home at the same time?
If you want to use the equity in your current home for the down payment on the next, it is possible. However, this is tricky, and all parties need to be on their game and all contingencies need to be completed in a timely fashion. You have to have constant communication between all parties, and organization is a must-have. Your Realtor will help walk you through this process.
Why should I buy a home instead of renting one?
Oftentimes, it is more cost-efficient to buy a home rather than rent one. When you buy, you are investing in your own future. When you rent, you are helping your landlord to invest in his or her future. There also are financial perks like tax deductions and home equity that come along with owning a home. There are also low, down payment options available.
I have my pre-qualification, what’s next?
Congratulations! This is an exciting time and I would be honored for the opportunity to help you find your new home! I will set up a time to discuss your needs and learn more about what is important to you in your future home. I pride myself on my quick response time and my availability. Great homes sell fast and I understand how important it is to be accessible and available to you. I will work closely with you to set up showings around your schedule.
I found the perfect home, now what?
Once you have found the home that you want to make an offer on, timing is important. Our industry uses the latest technology to get your purchase agreement together quickly, utilizing digital signatures that you can sign from your phone or computer. I am accessible even after traditional business hours.
I will run a detailed market analysis to determine what the true market value is for the home you are interested in to ensure you are offering a fair and competitive price.
I will use this data to put together an action plan for your offer price and terms. In this market, homes can go fast and it is not uncommon to see multiple offers. I know how to help your offer stand out. There is a lot that goes into the offer process and having a hardworking Realtor on your side can help you get your dream home.
What is a Real Estate deposit?
A deposit is paid by a Buyer on the successful agreement of the purchase/sale of a home and forms part of the final purchase price. In Ontario, a deposit is usually paid by certified cheque or money order. When a buyer and seller enter into a contract, the seller takes the home off the market while the transaction moves through the entire process to closing.
Deposits are typically 1% of the purchase price however if your finances are tight you can offer a lower amount. The higher the deposit, the more serious you will look to the seller. As a buyer, your deposit would be due within 48 hours of signing an agreement to purchase. This deposit is typically paid to the seller’s brokerage and is credited back to you at closing.
If the deal falls through due to a failed home inspection or any other contingencies listed in the agreement the buyer typically gets their deposit back.
Should I get a home inspection?
Once your offer is accepted, most purchase agreements will give you a 7 – 10 days inspection period which provides sufficient time to complete your due diligence. This includes hiring a home inspector and any other professional you need. Even though your excitement is at its highest, you can’t bypass one of the most important aspects of the home buying process, the home inspection. The typical cost of an inspection can range between $400-$700 depending on the square footage and features of the home, etc.
How quickly can I move into my new home?
Typical escrow periods are 30 to 45 days, This gives you enough time to do the investigation on the property and get your mortgage, property appraisal and insurance, and other due diligence completed.
What is an appraisal?
The findings from an appraisal determine the amount a mortgage lender will let you borrow for the property. Appraisals must be conducted by an AIC licensed, third-party appraiser who has no connection to the buyer, seller, or lender. That way, all parties can be sure the determined market value is fair, unbiased, and free of any influence from any party that could benefit. The lender usually orders the appraisal, but the borrower is the one who pays for it.
How much do I have to pay a Realtor to help me buy a house?
Homebuyers pay little or no fees to their Realtor when buying a home. For most home sales, there are two real estate agents involved, one that represents the seller and another who represents the buyer. In Ontario, for most transactions, the home sellers cover the Realtor fees.
Finding a real estate professional is a crucial part of the home buying process. Buying a home is a huge step, so you want to find someone who is accessible and available, someone who will understand your needs and look out for your best interest during this transaction.
Navigating a real estate purchase is a tricky business. The internet has made it possible to do a lot of legwork yourself, but there’s no substitute for an experienced professional. An expert negotiator who knows the market can save you time, money, and heartache by helping you make the right offer, playing hardball when necessary, and staying on top of the process.
Should I use my friend or relative as my Real Estate Agent?
This is a common question because the average person knows many Realtors. Any time you’re facing a large financial decision, like buying or selling your home, it’s wise to work with a registered professional to guide you through the process.
Real friends will respect your decision and not make you feel guilty about it and so will any agent you’d want to do business with. You have to ask yourself if you would hire that person if you had no relationship with them, never hire a Realtor because you feel bad. At the end of the day, this is a business decision for you and your family.
How do I search for a home?
Keep in mind many popular home searching sites make millions of dollars off of leads. This means these sites are more likely to make homes appear for sale when they are actually sold or closed. This can be frustrating for buyers and waste your time. You’ll want to use a site that gives you direct access to the MLS with real-time availability, the similar access Realtors have. dcrealty.ca offers that.
Do I need a Realtor when buying a brand new home?
Yes! Especially if you already have a buyer representation agreement signed with a Realtor. The Sales Consultants in the builder’s office represent and work for the builder AKA the seller. If you go in alone it is risky and if you end up buying you may be unrepresented, meaning you will have no one on your side, reviewing the legal documents and looking out for your best interests. Please call me before visiting any model homes.