When beginning your first or next real estate journey, there are many action steps that bring success to, what is likely, the largest financial investment you have ever made.
Step One is simply getting the horse in front of the cart by ensuring you are ready, willing and able.
Are you ready?
- You have already or are ready to place your current home on the market or give notice to your landlord.
- You have met with financial lenders or mortgage brokers to discuss the mortgage pre-qualification process. And have a copy of your Pre-Approved Mortgage Confirmation certificate. You have shopped around and know who you will be using when the time comes.
Are you willing?
- If you see a home that meets your wants and needs and is in your price range, you are willing to put in an offer.
Are you able?
- You have the expected 1%-5% funds available to use as a deposit.
- You have the 5%- 20+% down-payment needed to put towards your mortgage needs.
- You have additional funds to pay the land transfer tax, building inspection, water and septic inspections (for rural properties), moving expenses, etc..
Step Two is where the fun begins. Together, we will make a list of your wants and needs. There is a special home for you! As we tour homes, help me to narrow the search by sharing things you see that are likes and dislikes. Be sure to listen to options for overcoming obstacles that seem big but might have easy solutions.
Step Three is exciting but can feel overwhelming. Placing an offer is the act of writing a Contract for Purchase and Sale. It is legally binding and must be a perfect reflection of your desire. You must:
- Have a certified cheque for your deposit amount.
- Have access to the remaining down payment finances.
- Have a clear ceiling price.
- Have a realistic first offer.
- Be prepared to have the contract returned back and forth multiple times. This is the stressful part but is totally expected. It is not a personal attack and is part of the negotiation process and one of my favourite parts for the journey.
- Be prepared to request and pay for a building/water/septic inspections; property appraisal (mortgage), return to the bank for final financial approval. All this must be done before the subjects can be removed from the contract (usually 2 weeks) and then forms a binding contract.
- Contact your lawyer. My RE/MAX office will send them your file. They will prepare the Statement of Adjustment, manage the transfer of funds, transfer the Title and closing day papers.
- Celebrate! The house and keys are yours on possession day.