Home Buying Process
There are many steps involved in the process of purchasing a property. It can become quite overwhelming if you do not know what to expect and even more so if you are a first time home buyer.
Many of the stresses that are associated with the process can be greatly reduced or even eliminated if you know what to expect.
My job as your Professional Mortgage Specialist is to educate you on the process and break it down into easy to understand terms to make your home buying experience a much more enjoyable one!
This map provides you with the ten step guide to purchasing a property. I have broken these 10 steps down in more detail below.
Mortgage Pre-Approval
Getting pre-approved for mortgage financing is the first and most important step of the home buying process. A pre-approval is the process of collecting and reviewing all necessary documentation and information that a mortgage lender will need in order to approve you for mortgage financing once you purchase a property.
A pre-approval will provide you with a maximum budget so that you are aware of how much you can afford plus, all documentation will be reviewed to ensure that you meet the current lending requirements.
A pre-approval will provide you with a maximum budget so that you are aware of how much you can afford plus, all documentation will be reviewed to ensure that you meet the current lending requirements.
House Hunting
Once you have been pre-approved for mortgage financing, it is time to start shopping for your dream home!
There are a lot of different things to consider when choosing the right home to purchase. Licensed Real Estate Agents are trained to help you navigate the market and will negotiate on your behalf to ensure you get the best deal on the home you choose to purchase.
Working with a Realtor comes at no cost to you as a home buyer and their knowledge and expertise is invaluable.
If you do not know where to start, please contact me and I can put you in touch with a trusted Real Estate Professional.
There are a lot of different things to consider when choosing the right home to purchase. Licensed Real Estate Agents are trained to help you navigate the market and will negotiate on your behalf to ensure you get the best deal on the home you choose to purchase.
Working with a Realtor comes at no cost to you as a home buyer and their knowledge and expertise is invaluable.
If you do not know where to start, please contact me and I can put you in touch with a trusted Real Estate Professional.
Offer Accepted
Once you have found the perfect home to purchase, the next step would be to write an offer to purchase. Your licensed Real Estate Professional will assist you with drawing up the contract and will then present your offer to the Realtor who is representing the seller of the property. In conjunction with your offer to purchase, you will also have to provide a deposit as consideration for the contract. Your Realtor will assist you with determining how much your deposit should be as there are a few different factors involved.
When you are constructing your offer to purchase, you are able to include specific conditions in your offer. These conditions may include a home inspection, subject to lawyers approval, subject to sale, etc. These conditions are put into place to protect you, the buyer. Your realtor will help you determine which conditions are necessary.
One of the most important conditions you have the option to include is called a "finance condition". A finance condition provides you with a pre-determined length of time to arrange suitable mortgage financing. If for some reason, there's an issue with financing, you are able to back out of the purchase prior to the finance condition deadline and get your deposit back. If you do not include a finance condition in your offer and had to back out of the purchase, you would lose your deposit. This condition is very important as it protects you and your deposit.
The seller may accept your offer as presented, or they may counter your offer at which point your Realtor will guide you through the negotiation process.
Once the seller has agreed to the terms of your offer, your offer will be considered "accepted" and the deposit cheque you provided will be cashed and become part of your down payment.
When you are constructing your offer to purchase, you are able to include specific conditions in your offer. These conditions may include a home inspection, subject to lawyers approval, subject to sale, etc. These conditions are put into place to protect you, the buyer. Your realtor will help you determine which conditions are necessary.
One of the most important conditions you have the option to include is called a "finance condition". A finance condition provides you with a pre-determined length of time to arrange suitable mortgage financing. If for some reason, there's an issue with financing, you are able to back out of the purchase prior to the finance condition deadline and get your deposit back. If you do not include a finance condition in your offer and had to back out of the purchase, you would lose your deposit. This condition is very important as it protects you and your deposit.
The seller may accept your offer as presented, or they may counter your offer at which point your Realtor will guide you through the negotiation process.
Once the seller has agreed to the terms of your offer, your offer will be considered "accepted" and the deposit cheque you provided will be cashed and become part of your down payment.
Approval
Once your offer has been accepted by the seller, it is time to arrange mortgage financing!
This is where I shop around through dozens of different Banks, Credit Unions, Monoline and other types of lenders to find you the best deal on your mortgage. Once we have determined which lender is offering the best deal, I will submit your file to that lender so they can review the documents and issue a mortgage approval.
Provided that the property and document package is up to the satisfaction of the lender, they will issue what's called a conditional approval. This means that the lender has approved the mortgage but they will still require a few more things before the approval is complete.
This is where I shop around through dozens of different Banks, Credit Unions, Monoline and other types of lenders to find you the best deal on your mortgage. Once we have determined which lender is offering the best deal, I will submit your file to that lender so they can review the documents and issue a mortgage approval.
Provided that the property and document package is up to the satisfaction of the lender, they will issue what's called a conditional approval. This means that the lender has approved the mortgage but they will still require a few more things before the approval is complete.
Document Collection
At this stage in the process, we will work together to gather the remaining documents required by the lender in order to complete your mortgage approval.
Since your pre-approval may have been completed quite some time prior to the purchase of the property, we may need to update some of the documents on file. Some of the documents that may need to be updated would include a paystub, updated banking information and in some cases we may need a current letter of employment.
If part of your down payment is coming in the form of a gift from an immediate family member or you are participating in any incentive programs, the appropriate documentation would need to be filled out at this point as well.
Since your pre-approval may have been completed quite some time prior to the purchase of the property, we may need to update some of the documents on file. Some of the documents that may need to be updated would include a paystub, updated banking information and in some cases we may need a current letter of employment.
If part of your down payment is coming in the form of a gift from an immediate family member or you are participating in any incentive programs, the appropriate documentation would need to be filled out at this point as well.
Signing Meeting
Now that the lender has received all of the required documents, they will issue a mortgage commitment.
The mortgage commitment will outline all of the details of your mortgage. We will go through the mortgage commitment together and I will break everything down into easy to understand terms and I will answer any and all questions you have before you sign it.
Once you have signed the mortgage commitment, it is super important that you do not make any material changes to your employment situation or financial status before you take possession of the property. A lender issues a mortgage approval based on your current situation and the information you have provided. If you decide to change jobs or purchase a new boat during this time period it would mean that your situation is no longer the same and the lender has the right to refuse funding the mortgage.
The mortgage commitment will outline all of the details of your mortgage. We will go through the mortgage commitment together and I will break everything down into easy to understand terms and I will answer any and all questions you have before you sign it.
Once you have signed the mortgage commitment, it is super important that you do not make any material changes to your employment situation or financial status before you take possession of the property. A lender issues a mortgage approval based on your current situation and the information you have provided. If you decide to change jobs or purchase a new boat during this time period it would mean that your situation is no longer the same and the lender has the right to refuse funding the mortgage.
Home Insurance
Before your mortgage funds, it is required that you get insurance coverage for the property you are purchasing. This will need to be in place prior to possession day and will need to provide your Real estate lawyer with proof of the coverage.
Insurance Brokers have access to multiple insurance providers and products. They will be able to shop around and ensure you get the best deal on your coverage.
Let me know if you would like me to to put you in touch with an excellent Insurance Broker.
Insurance Brokers have access to multiple insurance providers and products. They will be able to shop around and ensure you get the best deal on your coverage.
Let me know if you would like me to to put you in touch with an excellent Insurance Broker.
Lawyer Meeting
Before you take possession of your new home you will need to meet with the Real Estate Lawyer of your choice to sign the final documentation to complete your purchase.
Your lawyer will provide you with a breakdown of the funds required to complete your purchase. The breakdown will include the balance of your down payment as well as the closing costs required to complete the transaction. Your lawyer will also instruct you to have your home insurance in place prior to the meeting just in case you forget.
Using a Lawyer that specializes in Real Estate will help ensure the transaction goes as smoothly as possible. If you need a recommendation, I have a trusted Real Estate Lawyer I can refer you to.
Your lawyer will provide you with a breakdown of the funds required to complete your purchase. The breakdown will include the balance of your down payment as well as the closing costs required to complete the transaction. Your lawyer will also instruct you to have your home insurance in place prior to the meeting just in case you forget.
Using a Lawyer that specializes in Real Estate will help ensure the transaction goes as smoothly as possible. If you need a recommendation, I have a trusted Real Estate Lawyer I can refer you to.
Possession Day
That's it, the home is yours!
You can retrieve your keys from your lawyer's office and move in.
Now that you are in the home, you should perform a walk through the home to ensure that everything works and that the property is exactly as it should be according to your offer to purchase the property. If you find any issues with the property you should contact your lawyer as soon as possible. They will guide you from there.
At this time you should contact all of the necessary utility companies to set up accounts and arrange for a locksmith to come out and change the locks on all exterior doors of the property. Since the keys are provided by the original owner you never know who else has a key!
You can retrieve your keys from your lawyer's office and move in.
Now that you are in the home, you should perform a walk through the home to ensure that everything works and that the property is exactly as it should be according to your offer to purchase the property. If you find any issues with the property you should contact your lawyer as soon as possible. They will guide you from there.
At this time you should contact all of the necessary utility companies to set up accounts and arrange for a locksmith to come out and change the locks on all exterior doors of the property. Since the keys are provided by the original owner you never know who else has a key!
Congratulations!
The home buying process is finally complete and it is time to celebrate!
Make sure to take note of your first mortgage payment date and be sure to have enough funds in the account. It is important to note that your first payment may be off by a few days depending on how long it takes the lender to set things up on their end.
Enjoy your new home and remember that I am always here if you have any questions or need anything at all!
Make sure to take note of your first mortgage payment date and be sure to have enough funds in the account. It is important to note that your first payment may be off by a few days depending on how long it takes the lender to set things up on their end.
Enjoy your new home and remember that I am always here if you have any questions or need anything at all!
Click the button above to contact me today.
Castle Mortgage Group
100-1345 Waverley Street
Winnipeg, MB, Canada
R3T 5Y7
100-1345 Waverley Street
Winnipeg, MB, Canada
R3T 5Y7