You’ll feel more confident about your home buying journey when you understand what is required of you and every other person who is involved in the transaction. This guide takes you through it, and shows you that you’re only 10 steps away from buying a home.
STEP 1: FINANCES
Your credit reports are an ongoing look at how you manage your finances. Know exactly what your credit reports say about your financial history before you apply for a mortgage. They play an important role in the mortgage approval process and in determining the interest rate and other loan terms that a lender offers you.
STEP 2: MORTGAGE PRODUCTS AND YOUR BROKER
Finding the right loan and lender is crucial to your home buying success. It’s up to you to determine which lender is best for your needs. Even the smallest increase in an interest rate can mean thousands of dollars over the course of the mortgage; ensure your lender can get you the best rate!
A good Broker will discuss mortgage products, types and ensure you know each step so there are no surprises. The lender will also provide estimated monthly and closing costs.
Make sure you calculate your budget with your mortgage broker and get a “rate hold” to ensure if interest rates rise, you can guarantee the lowest rate. If they go down, you’ll get the lower rate!
STEP 3: GET PRE-APPROVED FOR A MORTGAGE
Pre-approval helps you in other ways, consider this scenario. A seller gets two similar offers, one buyer is pre-approved and the other is not. Which offer do you think the seller will consider first?
Buying a home isn’t as difficult as you might think, but the process will go a lot smoother if you get familiar with your real estate market and narrow down your wants and needs before you start looking at houses.
Once your loan application pre-approval is accepted, the home shopping begins!
STEP 4: YOUR REALTOR® PARTNERSHIP
REALTORS ®represent buyers, seller, or both—and in some instances they can work as neutral facilitators for either party. A Good REALTOR® will do everything in your best interests to get you the best deal on your dream home. Later in this booklet we will discuss the options for Buyer Representation.
STEP 5: START SEARCHING FOR A HOME
Your TFG Sales Representative will begin to send you listings that meet your criteria directly to your email inbox. You will be added to the Buyer Registry so any property that meets your criteria you will be notified of right away. Our team constantly scans the market for new listings for our clients, every hour of the day!
Also, a great tool only available to REALTORS® is an automated listing system which sends you ALL of the day’s new listings that meet your criteria directly to your email inbox! You will have access to listings that the public will not see for 24-48 hours from the time you do, which gives you a great advantage to view the homes first.
STEP 6: WHAT TO EXPECT BEFORE MAKING AN OFFER
Deciding whether or not you want to buy a house involves a look at its structure and its features, but there are many other topics that are every bit as important to your purchase. Find a lawyer, home inspector and others and have them ready for when you need them, please refer back to the key player section of this presentation.
STEP 7: MAKE AN OFFER
Once we view homes and we have found the home you want to buy, we make an offer. Your offer will be conditional on a final finance approval from your lender to ensure funds are available on closing, a home inspection, obtaining home insurance and any other conditions you and your TFG sales representative advises on to ensure your protection.
STEP 8: HOME INSPECTIONS AND OTHER TESTS
Home inspections take place after a conditional offer is finalized. Talk with your real estate agent or other advisor to find out if additional types of testing are important for your specific area.
Your offer is accepted! The conditional phase begins, which is usually 5 business days to satisfy finance, inspection and home insurance condition (and any others which we discussed).
Once all are satisfied, we sign a waiver and prepare for closing!
STEP 9: AVOIDING AND CORRECTING LAST MINUTE PROBLEMS
As your closing date nears, staying on top of things means you’ll know immediately if there’s a problem that must be dealt with.
STEP 10: YOU’RE ON THE WAY TO CLOSING
The lender disburses funds to your lawyer on date of closing. You sign closing documents at your lawyer’s office on the date of closing and your loan is funded.
The sale transaction is complete and you get the keys! Time to move!
Never hesitate to ask questions. Ask as many questions as necessary to help you understand the entire home buying process. You are making a long term commitment and spending a major amount of money—you’ll feel much better about the transaction if you stay informed and understand what’s happening every step along the way.
Please ask if you need good referrals for a lawyer, mortgage broker, movers or home inspectors.
Trademarks owned or controlled by The Canadian Real Estate Association. Used under license.
The information provided herein must only be used by consumers that have a bona fide interest in the purchase, sale or lease of real estate and may not be used for any commercial purpose or any other purpose.
Information is deemed reliable but is not guaranteed accurate by TREB.
Toronto Real Estate Board - IDX Last Updated: 8/17/2017 1:51:56 AM