Buying a House is one of the biggest investments we may make in our lives. Buying a House is a lot more than just finding Houses For Sale. There are a lot of intricate details that I can help you understand. In a nutshell, below are the steps to Home Buying:
Step 1 – Initial Consultation with Me
Searching the Internet for "Best Realtor in Calgary" might not be the best approach to find a REALTOR®. The "Best Realtor in Calgary" might not work the best for you. Hence I suggest a free, one-on-one, no obligation consultation with me and make sure I can fulfill all your Real Estate needs. If you decide to go ahead with me, we will discuss your unique home buying needs and come up with a strategy to find the right home for you.
Step 2 - Getting Mortgage Pre-Approval
There are many ways you can finance your Home Purchase. Not all of us inherit a fortune or win a lottery so below are the three main sources of financing.
Traditional Banks – If you already have a great rapport with your current bank, this is a good option. Usually you will be able to get pretty good terms on your mortgage.
Mortgage Brokers – They have the most options. They can use most of the major banks, plus many other lenders. They will be your best bet to truly finding the best option for your particular situation and needs.
Creative Financing – The options here are endless and are great for investing, or if you cannot access a mortgage through the banks or mortgage brokers. Get in touch with me to know more about creative financing techniques.
Step 4 - Start the Search
This is where excitement starts. After our Initial Consultation I have a good idea of what kind of house you are looking for and I will search the Database and talk to my Associate REALTOR® to find the houses for sale that meet your requirements. Once you find a few Houses for Sale that intrigue your interest, I will arrange for you to take a look at them. I will explain the pros and cons of the property and help you make the decisions.
Step 5 - Write the Offer
Once you have found a house that will suit your needs, I will prepare an offer according to your terms and conditions. An initial deposit also accompanies the offer (Cheque, Draft or Certified Cheque etc). There are several steps that have to be taken when you write your offer.
Market Analysis – This is where I do the assessment of the property by analyzing the market. I analyze the current houses for sale and recently sold houses in the area. This helps us come up with a good offer.
Terms - Terms are the clauses that make up the contract. These are the items that are agreed to and will be upheld, otherwise there is a breach of contract. In addition to the standard terms we can come up with additional terms to suit your needs. Keep in mind that all the terms are the basis of negotiation and can affect the attractiveness of the offer.
Conditions – Conditions, on the other hand, are clauses in the contract that must be fulfilled in order for the transaction to even proceed. Typical conditions are for a home inspection, or for the buyer to be approved for financing. The buyer or seller is then given a few days to fulfill the conditions (typically 7 to 10 days). If something happens where either the buyer or seller are not satisfied with the results of their attempt to satisfy their conditions, then they may walk away from the contract at no cost and with no further obligation (deposit returned).
The Offer Presentation and Acceptance Procedure - After the offer is written and signed, I will present the offer to the seller and handle all the negotiations.
Step 6 - Satisfy Conditions
Once the offer is accepted by both parties, it is time to proceed with satisfying the conditions. This is usually getting the Mortgage approved and Home Inspection done. As your REALTOR®, I play a huge role in making the necessary arrangements to satisfy the conditions. After the conditions are satisfied, a written Notice of Waiver is given to the other party and the Sale is considered "firm".
Step 7 - Preparing for Possession
Below are the steps that need to be taken in the preparation of possession.
Lawyers - Once you have chosen a Lawyer, they will need all of the required paperwork prior to you meeting with them. I will ensure the Lawyers get absolutely everything they need. You will need to set up an appointment with your lawyer and the lawyer will instruct you about the things he will need from you. The arrangements for Home Insurance will also need to be made before meeting the Lawyer.
Down Payment - It is important to note that liquidating certain assets can take upwards of 30 days, so start arranging for the down payment well in advance.
Movers - If you are using professional movers, book early. Possession dates commonly fall on the 1st, 30th, or 15th of the month. Movers fill up their schedule very fast, so call ahead and make the arrangements early.
Utilities and address change - When you take possession of your new home it is very important to change your utilities over to your name & address in advance. This includes your phone, cable, internet, power, water, and gas services. Also, don’t forget to cancel the utilities at your previous residence. You will also need to update your address with CRA, Driver’s license, Telephone company etc.
Step 8 - Possession Day
Typically, possession happens at 12:00pm (noon) on the agreed upon day. The seller’s lawyer will contact me to notify when keys can be released to you, and will provide permission to access the property
This day can be very exciting and very stressful, so proper planning of your move, well in advance, is critical. Congratulations, you are officially the owner of a new home!
Step 9 - Follow Up
You might have questions even after the possession. I will do a follow up to ensure everything is in place and you can let me know if you have any questions.
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