Buying a Home
Buying a home can be an intimidating process, especially for first time home buyers. Our team at Bauld & Associates strive to make the home buying process as stress free as possible by walking you through each step.
Step 1: Mortgage Pre-Approval. The first step in the home buying process is to get pre-approved for a mortgage to determine what you can afford. You will need to contact your bank or local mortgage broker and provide your most recent T4, paystubs, and letter of employment. They will also need to do a credit check, so make sure your government issued ID is handy. If you need recommendations on mortgage specialists in Fort McMurray we can help you with that.
Step 2: Financially Prepare. A downpayment is the amount of cash you put down on your home and is dependant on the purchase price. For first time home buyers, the minimum downpayment is 5% on the first $500,000 and 10% for the portion of the purchase price over $500,000. It is important to note that if your downpayment is less than 20%, you will need to purchase mortgage insurance. It is also important to pay off any credit cards, lines of credit, or loans to help you get pre-approved for a mortgage. Your mortgage broker will give you advice on how to get approved for your mortgage.
Step 3: Choose a REALTOR®. Our best advice when choosing a REALTOR® is making sure you trust them! Remember, they are walking you through the BIGGEST transaction of your life. One of the best ways to find a trusted REALTOR® is by asking your friends and families for referrals.
Step 4: Make a Home Criteria List. Once you have determined your budget, you should send your REALTOR® a list of "must have" home criteria such as the number of bedrooms, bathrooms, garage, fully fenced backyard, etc. After you do this, your agent can then send you listings that suit your personal needs.
Step 5: Schedule Showings. Once you narrow down your search, send your REALTOR® a list of addresses you would like to see in person. Your REALTOR® will book the showings for you and will take you to all the properties you want to see.
Step 6: Place an Offer. After viewing all the homes you'd like to see, put an offer in on the one you love the most! Your REALTOR® will walk you through the negotiation process to get you the best deal possible. Once the offer is accepted you will receive a bunch of documents for electronic signing, which your agent will explain in full.
Step 7: Obtain Financing. Inform your mortgage broker of the accepted offer so they can work on getting financing in place. Your mortgage specialist will start completing the mortgage application on your behalf and will submit it to the lender for approval. Keep in mind that you will need to provide a deposit for your purchase to your realtor, which is usually in the form of a bank draft email transfer. At Bauld & Associates we will collaborate with your mortgage lender to ensure they have all the necessary documents related to the transaction.
Step 8: Schedule a Home Inspection: Your REALTOR® will advise you to schedule a home inspection to identify any minor or major issues with a home before you purchase it. After the home inspection, your agent will negotiate with the sellers agent to have inspection items fixed or replaced or request money off the originally agreed upon purchase price. At Bauld & Associates, we can recommend reputable home inspectors and can schedule the inspection on your behalf.
Step 9: Waive Conditions. Once you obtain financing and the home inspection repairs are to your satisfaction, your REALTOR® will send you a document for you to sign indicating the contract conditions have been satisfied. After this document is signed, the house is SOLD and you are officially a home owner.
Step 10: Contact Your Lawyer: Book an appointment with your preferred lawyer so that you can sign all the necessary paperwork required to close the contract and transfer the land title into your name. If you need recommendations for real estate lawyers in Fort McMurray, we can help you with that!
Step 10: Pre Possession Walk-Through. Approximately, 48 to 72 hours prior to possession you will attend a pre possession walk-through with your REALTOR® to ensure the home is left in a clean and empty state.
Step 11: Possession Day! This is the day your realtor will hand over your new keys and congratulate you on the purchase of your home. It is important to note that possession doesn't always occur first thing in the morning. Your lawyer will inform your REALTOR® when the keys can be released.
Did you know that using a REALTOR as a a buyer is completely FREE!? Real estate agents are commission based professionals that are paid by the seller, so as a buyer you don't need to budget for using a REALTOR®.