Handy Step-by-Step Guide for Buyers

We are experiencing a more buyer friendly market in most segments, with some relief on interest rates, reduced prices, and higher inventory (more choice). Are you thinking about getting into the market? Or do you know someone who is thinking about getting into the market? This guide may be helpful in understanding how to buy your first home.

Step 1: Initial Consultation with a Local Realtor. Meet with an experienced Realtor who knows your market. Ask questions about the buying process, market conditions, and let them learn about your needs, wants, timelines and how you like to communicate. Make sure there is a good rapport with the agent. This meeting helps set your roadmap and gives you a clear sense of the journey ahead.

Step 2: Meet with a Mortgage Lender and Get Pre-Approved. Sit down with a mortgage lender (mortgage advisor at a bank, or a mortgage broker) to review your finances. Look to come away with a pre-approval, so you understand what size & type of a mortgage the lender will approve for you. Ask about down payment options, interest rates, and other costs so there are no surprises.

Step 3: Create Your Personal Budget. Your lender may approve you for a certain amount, but that doesn't mean you need to spend to the limit. Consider your lifestyle, monthly expenses, and future plans. Decide what you're personally comfortable committing to for housing.

Step 4: Define Your Home Search Criteria with Your Realtor. Work with your agent to set your home search criteria, including "must-haves" and "nice-to-haves." Your agent can set up a search on the MLS system, network with their database, and with other agents. They may be able to find homes before they hit MLS.

Step 5: Tour Homes & Refine Your Criteria. View properties in person, get to know different types of homes and neighbourhoods in your budget. Learn which features you would like to prioritize and which features you can compromise on. Search criteria almost always changes, it is an organic process. Eventually you will use a process of elimination to narrow down to the type of home and area you will focus on.

Step 6: Be Prepared to Make an Offer. Have your deposit funds easily accessible (usually about 5% of the purchase price). Budget for legal fees ($1,500-$2,500), land transfer tax (with a rebate available for first-time buyers), moving costs, and any appraisal fees your lender may charge.

Step 7: Making an Offer. When you're ready, your Realtor prepares the Agreement of Purchase and Sale (APS). Key decisions include: price, deposit, closing date, irrevocable time, inclusions (appliances, fixtures), and conditions such as financing or inspection. Your Realtor will guide your strategy and protect your interests.

Step 8: Offer Accepted! Once your offer is accepted, you will provide the deposit. If you included conditions, this is your due diligence period: financing approval, home inspection, and status certificate review (for condos). You will fulfill your conditions when you are satisfied. Alternatively if your conditions are not satisfied, you can legally walk away from the purchase and your deposit will be returned.

Step 9: From Firm Sale to Closing. After the sale is "firm" (conditions fulfilled) here are some tasks to keep in mind. Arrange home insurance (your lender requires proof before closing), set up utilities, and ensure your lawyer and lender have all required documents. You'll sign final closing paperwork with your lawyer about a week before closing. You will usually also arrange with your agent to view your home a couple of times prior to closing.

Step 10: Closing Day! On closing day, your lawyer transfers funds, registers the deed, and finalizes documents. The transfer can happen anytime during business hours. Once registration is complete, you'll get the call that the keys are ready and the home is officially yours!

Step 11: Post-Closing Tips. Update your address with banks, ID, and subscriptions. Set up mail forwarding through Canada Post. Confirm utilities are in your name, double-check your insurance policy, and keep all closing documents in a safe place. Take time to get familiar with your new home - find the water shut-off, breaker panel, and appliance manuals. Then, celebrate: you're officially a homeowner!

- Joe, Doug & Randal Real Estate Team