Home Buyers
CM Realty Group – Making your purchase our priority.
Step 1: Hire A Realtor
5 Reasons why you should hire a realtor:
Paperwork
Experience
Negotiations
Pricing
Market Knowledge
Realtors have in-depth knowledge about the local real estate market. They stay updated with current trends, neighbourhood developments, and property values. By hiring a realtor, you gain access to their expertise, enabling you to make well-informed decisions. They can provide valuable insights into the market conditions, helping you navigate through competitive offers, identify potential investment opportunities, and ultimately secure the best deal possible.
Step 2: Pre-Approval
At this stage, you will receive my contacts for my preferred mortgage lenders. It is recommended that you obtain a pre-approval letter vs a pre-qualification letter. The lender will ask you for some documentation such as proof of employment, pay stubs, recent tax returns, and then a credit report will be conducted. Please make sure to bring to the lenders attention any of your concerns with your credit history, bankruptcies, etc.
THIS WILL SAVE YOU TIME AND MONEY!
WHY PRE-APPROVAL SHOULD BE YOUR FIRST STEP
In many markets across the country, the number of buyers searching for their dream home greatly exceeds the number of homes for sale. This has lead to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified for a mortgage before you start your search.
Obtaining pre-approval not only provides a clear picture of your affordability but also empowers you to navigate competitive markets swiftly and confidently. With pre-approval in hand, you can act swiftly and submit an offer the moment you discover your dream home.
Step 3: Let’s Discuss Your Wants and Needs
We will now discuss all the specifications you want in your new home. When looking at houses on the market, be sure to write down certain features of each house that you like and find appealing.
Since homes sell quickly, you may not have the chance to revisit the home again and again. Also find out about certain amenities of the area, such as schools, parks, public transportation, etc. Keep these in mind when searching for your home because they can be important factors in determining which house is right for you.
You will now get set up to receive alerts straight from the MLS as soon as a property matching your criteria hits the market or has a status change. Once you find one you want to take a look at, pick up the phone and let me know and we will schedule a tour right away.
Step 4: Negotiating your terms with confidence
When making an offer on a home, your Real Estate Consultant can be relied on to negotiate the best price and help protect your best interest.
PRICE: Depending on market conditions, most likely the price you will offer will be lower than the seller’s asking price. I will guide you through the process and provide information that will help you make an informed decision regarding the offer and price of the home.
EARNEST MONEY: The Earnest money (deposit) shows your good faith when making an offer and will be applied to the purchase of the home once the sale closes. The deposit is usually the 5% of purchase price but depending on the negotiation strategy, I will recommend the appropriate amount for the deposit.
TERMS AND CONDITIONS: When submitting an offer to purchase a property you will want to include conditions that must be satisfied before the agreement becomes finalized. These conditions could include a home inspection, subject to financing, subject to the sale of your own property and review of Condominium documents.
INCLUSIONS AND EXCLUSIONS: Before making an offer and during the inspection of the home, it is wise to write down the items you would like to be included in the purchase price. These could include appliances, fixtures, window convenings, etc.
CLOSING DATE: This is the day when the title of the property is legally transferred, and the transactions of the funds finalized.
Step 5: Inspections
It is super important to conduct a home inspection prior to purchasing a property. We have a list of licensed professionals that come highly recommended by us and others in the real estate business. Once the inspections are completed, we will discuss what is important to have taken care of prior to settlement. The sellers do have an option to deny any repairs or just offer a lump sum instead of fixing issues.
What Will Be Inspected?
- Appliances
- Plumbing
- Electrical
- Air Conditioning
- Heating System
- Roof, Attic, Crawl Space (If accessible)
- General Structure
Some Additional Inspections
- Pest/Termite Inspection
- Radon
- Chimney
- Sewer/Septic
Cost of a Home Inspection
Depending on the square footage of the house, the price will vary. A general home inspection will range from $300-600 not including the cost of potential additional inspections.
Step 6: Submit Loan To Lender
When you submit a load to your lender, it is known as “going into underwriting.” The term “underwriting” refers to the process that leads to a final loan approval or denial. A loan’s approval status is made by a professional underwriter which uses special software programs and number-crushing analysis.
Step 7: Order Appraisal and Title Work
Selecting the right title company makes all the difference in this process. This company will be protecting your interest to ensure we ware able to close on time. This is who will transfer the ownership from the previous owners to you. I will provide you a list of recommended companies who come highly recommended in the industry.
Step 8: Clear to Close!
Assuming this process is completed and approved, your lender will issue a clear a close notification and you will be ready to settle on your home. You will soon be provided a Closing Disclosure (CD). The Closing Disclosure will provide the final details about the mortgage loan you have selected. It includes the loan terms, projected monthly payments, and how much you will pay in fees and others costs to get your mortgage. You must receive this at least 3 days prior to the settlement date. Depending on the amount of money needed for closing, you will most likely have to wire the funds to the title company. They will provide all the information for the process.
Step 9: Get Ready For Closing!
Pick Your Homeowners Insurance
This is your choice. Look into your existing car insurance provider and see if they have package deals for home insurance as well. You will need to pick a provider and let your lender know the information so they can add it into your mortgage monthly payments and finalize the loan. There are highly competitive rates and this will impact your monthly payment.
Transfer Utilities to Your Name
Call your local gas and/or electric company and change the service into your name effective the date of your closing. In some instances the water bill will already be partially paid by the current owners, so that will be prorated at closing. The water should transfer into your name automatically once your deed is recorded. It is not uncommon to receive the next water bill in the previous owner’s name.
Schedule Final Walk Through
Prior to closing, we will go through the property to make sure it is in the same condition as it was when your contract was accepted and that any agreed upon repairs were made. This is best to do as close to your settlement day as possible. It is even OK to do it the morning of your settlement!
Step 10: It’s Closing Day!
You have gone through all the hoops to get to this day … CLOSING DAY !! Today is the day you go from home seeker to homeowner!
After you have received the clear to close from your lender, your closing will be set on or before the date designated in your contract. At your closing, the title company officer will review with you and the seller the financials relating to your closing. The seller will sign over the property to you and give you the keys. You will sign off on all your loan documents and, after so, funds will be disbursed to seller and you will be able to take possession of your new home.
Be prepared for a lot of signing and don’t forget to bring your ID!
Who Will Be At Closing?
You; The Buyer(s), The Seller(s), Buyer’s Agent (Me!), Listing Agent, Closing Attorney; the party representing the title company and responsible for ensuring the title is transferred to you. Occasionally, Your Lender; they will be present for any last minute questions or issues pertaining to your loan.
Timeline of Events
1-2 Days
For Earnest Money Deposit
7-10 Days
10-14 Days
21-30 Days
3-5 Days
30-60 Days
Upfront Costs and Closing Costs
Your lender will be able to run an estimate of everything prior to submitting an offer so you are prepared for settlement and what to expect!
Upfront Costs
Earnest Monday Deposit: 1-2% of purchase price.
Home Inspection: $300 – $600.
Appraisal: $300 – $550.
Closing Costs: 3-5% of purchase price.
Down Payment: 0% – 20% + determined by what lender and you decided is best for your situation.
Closing Costs
Pro-rated Taxes
Loan Fees: Processing, underwriting, wires, prepaid interest.
Title Fees: Title insurance policies, deed preparation, settlement fees.
Survey
Prepaid Homeowners Insurance
Government Fees: Recording deed, recording mortgage, provincial transfer tax (waived for 1st time homebuyers).
Frequently Asked Questions
Who Pays The Realtor Fees When Buying a Home?
How many homes should I look at before putting in an offer?
What is Title?
What is the difference between down payment and closing costs?
Down payment is a percentage of the purchase price of the home. Lenders require that borrowers must invest a certain percentage of the purchase price in the home. Closing costs are the other, non-down payment costs, paid at settlement. These include all the fees associated with closing a loan.
If the contract falls through, do I get my money back?
It is very uncommon for a contract to fall through but depending on who is at fault, you should receive back your EMD, but anything paid for, like home inspections, is forfeited.