5 Steps to Buying a New Home
A good real estate agent has bought or sold hundreds of homes, but this may be your first time. It’s important for you to understand the basic steps in the process so that you are prepared to put your best offer forward, the transaction is processed as smoothly as possible, and your move in day is enjoyable:
1. Talk to a Mortgage Specialist. This could be an independent Mortgage Broker or a Mortgage Advisor associated with your bank. Either way, before you consider making an offer on a new home you need to make sure that you are pre-approved for mortgage financing. This pre-approval will help you determine your budget which is always important to know during negotiations. Of course, while this pre-approval is important to have in place before making offers, it is just the beginning of your discussions with the bank. Once your offer is accepted, the bank will want to do a more thorough review of the property (ie appraisal) before they give final approval on the mortgage. Typically, your offer to purchase the property will include a subject to financing so that your bank has the opportunity to compete this review before giving final approval of the mortgage.
2. View as Many Homes as Possible. While it’s possible to fall in love with the very first house that you see, it is usually wise to spend some time viewing multiple properties before making offers. As you see more homes, your eye to detail will improve and you will develop a stronger sense of what a house can offer you and what you really need in your new house. Plan to spend a few days viewing listings, going to showings, and attending open houses. Be sure to keep your realtor informed of your activities and work with him/her to guide you on your adventure.
3. Make an Offer: once you do find the perfect home for you, it will be time to submit an offer to purchase. Your realtor will use a standard contract to draft the offer, but you will be able to add subject conditions that are important to you. If the offer is accepted by the sellers, you offer will be legally binding, subject to any of the conditions that you included in the contract. These conditions will need to be removed before the sale is finalized.
4. Choose a lawyer/notary: You can’t buy a house in BC without the assistance of lawyer/notary. Your lawyer/notary will work with your banks and the real estate conveyancers for both the buyer and seller to process the transaction and register the new property title with the Land Title and Survey Authority of BC in a timely manner. While it is a complex process, a legal professional that specializes in real estate can make it routine. Choose a lawyer/notary that is both experienced and convenient for you – you will need to book a closing meeting to finalize the paperwork.
5. Coordinate the Moving Day: your date and time to move into your new home will be clearly identified in the contract to purchase. When that day comes, you will get the keys to your home and be able to move in! It’s up to you to coordinate the movers and organize the move with strata (if applicable). You might also want to take advantage of the empty home to do a deep clean, compete paint touch-ups, or install new flooring – all of which are easier to do with the house empty. Also, don’t forget that possession day also comes with some responsibilities – make sure your home insurance is in-effect, your mail is redirected by Canada Post, and your utilities are hooked up.
While choosing and moving into your new home should be an exciting time in your life, my goal is to make sure you have as few surprises as possible so that you can truly enjoy those moments. Hopefully, understanding the points above will make that easier for you to do.