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1. Q. What is the first step in buying a home?
A. The first step in buying a home is to research and contact local realtors in your area. It is a good idea to ask friends and family for a personal referral(insert link to client testimonials) of someone that they have worked with in the past. This is also a time for you to meet and “interview” your potential buyers agent. You’ll want to ask questions such as “How long have you been in the business”, “What is your best marketing strategy for me”, “Can I preview any documents that I will need to sign in the process” and “What differentiates you from your competitors”. Some real estate agents have taken extensive education and earned their Accredited Buyers Representation designation in order to assist you.
2. Q. Should I get pre-qualified for a mortgage BEFORE I start looking at homes?
A. The answer to this question is definitely YES. Not only will it save you time and money, you will be able to check off one step of the requirements of purchasing a house. Also, getting pre-approved for a home mortgage loan is the first step to getting the actual loan. Through this process, a mortgage lender or broker will review your qualifying criteria (credit score, income, debt, etc.) to determine how much they are willing to loan you. It is also an opportunity to secure a low interest rate.
3. Q. What is a buyers agent?
A. Buying a home is no small matter. Besides being the largest financial transaction you may ever undertake, it’s probably also the most complex. The key difference between a buyers’ agent and a traditional selling agent is who they represent. A buyers’ agent works exclusively for the buyer, whereas the selling agent works for the vendor (seller).
4. Q. What is the process of finding a home?
A. Your buyers agent is working on your behalf. They will sit down and explain the entire process of home buying and discuss all the requirements for your new home. After that you will work together to find suitable properties to view. Your buyers agent will make appointments to view the selected properties and once you have found your dream home, then next step is the offer and negotiation. Once this is completed you will most likely perform a home inspection, water test and other conditions of your offer to purchase. Once all the conditions in your offer have been met, the home owner will expect a deposit to be made to the listing company in trust. You will then perform a pre-closing walk through inspection prior to taking possession of your new home.
5. Q. How much should I offer on a house?
A. Value of a house is determined by how much the “average buyer is willing to pay in a particular market”. What this means is that what value YOU place on a home, is not the same as your friend or neighbour. Your buyers agent will work with you to formulate a strategy in your negotiation process of the home you have found. Your buyers agent will use their experience and the MLS market data to ensure that you are not overpaying for the style and area your home is in.
6. Q. How much will my closing costs be to purchase a house?
A. Most buyers should budget about 1.5% of their purchase price to cover closing costs. Closing costs will include your lawyer, water test, home inspection, fuel adjustment, land transfer tax, property tax credit, survey or title insurance and deed registration fees.
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