|You will need to plan ahead to cover the many up-front costs of buying a home. Timing is important to help make sure things go smoothly.
What Should You Buy?
- Mortgage Loan Insurance Premium - Appraisal Fee – Deposit -Down Payment
- Home Inspection Fee - Land Registration Fees - Property Purchases Tax
- Prepaid Property Taxes and/or Utility Bills - Property Insurance
- Survey or Certificate of Location Cost - Water Tests - Septic tank
- Legal Fees and Disbursements - Title Insurance
Your Current and Future Needs
Before you start searching for a home, you need to think about your needs both now and in the future. Here are some things to consider:
What Professionals Should You Call On?
- Size requirements. Do you need several bedrooms, more than one bathroom, space for a home office, a two-car garage?
- Special features. Do you want air conditioning, storage or hobby space, a fireplace, a swimming pool? Do you have family members with special needs? Do you want special features to save energy, enhance indoor air quality and reduce environmental impact?
- Lifestyles and stages. Do you plan to have children? Do you have teenagers who will be moving away soon? Are you close to retirement? Will you need a home that can accommodate different stages of life?
Because purchasing a home is probably the biggest investment you will ever make, you'll definitely want a team of professionals working with you throughout the process.
The Real Estate Agent – the most important step
No one will play a more important role in helping you find a home than your Realtor. Your Realtor’s job is to:
- Help you find the ideal home.
- Write an Offer to Purchase.
- Negotiate on your behalf to help you get the best possible deal.
- Provide you with important information about the community, help you arrange and coordinate a home inspection and essentially save you time, trouble and money.
Having an independent appraisal done on a property before you make an offer is a good idea. It will tell you what the property is worth and help ensure that you are not paying too much.
Your lender can also ask for a recognized appraisal in order to complete a mortgage loan.
The Lender or Mortgage Broker
If you haven't already gone through the mortgage pre-qualification process, you will need to find a good lender or mortgage broker to assist you during the purchasing process and for as long as you have your mortgage.
You need a lawyer to protect your legal interests, such as ensuring the property you are thinking of buying does not have any building or statutory liens or charges or work or clean-up orders associated with it.
The Home Inspector
You should consider having any home you are thinking of buying, whether it is a resale home or a brand new home, inspected by a knowledgeable and professional inspector.
The Insurance Broker
An insurance broker can help you with your insurance needs, including property insurance and mortgage life insurance. Lenders insist on property insurance because your property is their security for your loan. Property insurance covers the replacement cost of your home, so premiums may vary depending on its value.
Making an Offer to Purchase
Once your Realtor has helped you find the right home, he or she will present the vendor with an Offer to Purchase or an Agreement of Purchase and Sale. As your home is probably your biggest investment, it is essential to work with your Realtor in preparing your offer. Remember that the Offer to Purchase or Agreement of Purchase and Sale is a legal document and should be carefully prepared.
The Final Step
All your hard work has paid off, and closing day is here. Closing day is the day when you finally achieve your goal, take legal possession and finally get to call the house your own.