Home Buying 101: The Home Buying Process

Home Buying 101: The Home Buying Process

Embarking on the journey to homeownership is a thrilling and significant milestone. With the right guidance, buying your first home becomes a rewarding adventure. In this blog, we'll walk you through the essential steps of the home buying process, providing valuable insights to help you make informed decisions.

  1. Have a conversation with a real estate agent

A real estate agent will be able to give you the big picture on the buying process and connect you with the professionals you will need along the way. It’s a great place to ask any questions you have and to set up a plan to succeed in the process. The best part: it’s free information!

  1. Assess Your Financial Picture

Take a close look at your finances. Determine your budget by evaluating your income, monthly expenses, and existing debts. This will give you a realistic picture of how much you can afford to spend on a home.

  1. Get Pre-Approved for a Mortgage (use a mortgage broker!)

Securing a mortgage pre-approval is a crucial step in the home buying process. There are two avenues you can take with obtaining a pre-approval; working with a lender and working with a mortgage broker. The problem with working directly with a lender is that you’re only getting one lender’s opinion on you as a buyer. Each lender will evaluate your financial picture differently, so being tied to only one lender limits your options. On the other hand, a mortgage broker takes your financial picture and goes to multiple lenders to get you the terms that work best for you. Their services are free to you and the broker gets paid directly from the lender that you end up working with! This is our recommended path for all buyers we work with.

  1. Define Your Priorities and Needs

Create a list of your priorities and must-haves in a home. Consider factors such as location, size, number of bedrooms and bathrooms, and any specific features or amenities. This will help you narrow down your options and focus on properties that align with your preferences.

  1. Start House Hunting

Once you have a clear understanding of your budget and priorities, begin exploring homes on the market. Attend open houses, schedule private showings with a realtor, and utilize online platforms to browse listings. Keep an open mind and be patient, as finding the perfect home may take time.

  1. Make an Offer and Negotiate

When you find a home that meets your criteria, work with your agent to create an offer. Be prepared for negotiations, as the seller may counter your offer. Your agent's expertise is invaluable during this stage, helping you navigate the back-and-forth to reach a mutually beneficial agreement.

  1. Complete Due Diligence

Upon reaching an agreement, you'll enter the due diligence phase. This involves conducting inspections to ensure the property is in good condition and addressing any concerns that arise. Additionally, your lender will conduct an appraisal to determine the property's value. If due diligence is completed to your satisfaction, the deal will then become firm and binding.

  1. Finalize Mortgage and Closing

With inspections and appraisals successfully completed, it's time to finalize your mortgage. You will work closely with your lender to complete the necessary paperwork and ensure a smooth closing process. Once everything has been satisfied by your lender, you will sign the final documents with your lawyer and officially become a home owner!

The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are member’s of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.