Buying a home is one of the most exciting milestones of your life. To prepare yourself for this moment, you need to know what to expect during the process. This step-by-step first time buyer’s guide created by your agent will help reduce the stress of buying a home and help you enjoy the journey as much as possible.
Do you already know where you want to buy? If you want a condo, townhome, or single-family home? Which features do you like and dislike? What’s available on the market now? If you answered no to any of these questions, now is the time to start researching. In addition to looking for homes that interest you, also take note of any changes in asking prices. This could give you valuable insight into housing trends in specific neighborhoods and help you when the time comes to make an offer.
Notice I said to decide on your budget—not determine how much the mortgage company will give you. In many cases, a mortgage company will pre-approve you for more than you’re comfortable spending, which is why you need to determine the monthly payment you feel comfortable with before talking to a lender. This likely includes doing a full household budget and taking into consideration what changes other than a mortgage payment will occur once you move into your new home. If you’ve lived in an apartment or with roommates, you may overlook new expenses like garbage, water, or HOA fees that could easily blow your budget.
Just because you think you can afford a certain payment every month doesn’t mean the mortgage company will agree. Just as they may approve you for too large of an amount, they may also approve you for a lesser amount or deny you a mortgage altogether. Lack of time at a job, insufficient credit, past bankruptcies, or other financial issues can cause major problems when trying to secure a mortgage. Before you get your heart set on a home, talk to a mortgage professional to find out what amount you can qualify for. This will also be an advantage when you make an offer on a home, as some sellers won’t entertain offers from those who aren’t already prequalified for a loan.
Can you shop for, look at, and ultimately make an offer on a home without a real estate agent? Technically yes, but why would you when it costs you nothing for an agent like me to take much of the stress off your shoulders? Not only will I help identify properties you might be interested in, arrange showings, and ultimately handle the offer process, but I also have a knowledge of the market that you don’t possess. I may be able to steer you away from certain homes or neighborhoods, suggest hidden gems, or give you pointers that will help you find your dream home for the right price.
This should be the most enjoyable step of the entire process (other than moving in!). I will arrange showings of homes you’re interested in that are within your price range. Take notes about what you like and don’t like, and make sure to pay attention to details. Turn light switches on and off, open and close doors, and run the faucets in various rooms. Don’t limit your inspection to the home itself. Make sure to take time to explore the neighborhood and keep an eye on traffic at certain times of the day, the parking situation, and how close it is to necessities like schools and grocery stores.
Once you have selected the perfect home, work with your agent to craft a fair offer based on the value of comparable homes on the market. Depending on what the home is listed at and whether the current environment is a buyer’s or seller’s market, your offer may be below, at, or even above the asking price. I will be able to help you negotiate if you receive a counteroffer and reach an agreement. At this point, the house will go into escrow.
In most cases, your offer will be contingent on having the home inspected to ensure there is no major structural damage or large repairs needed. I can help you arrange this, and you can schedule it within days of making an offer. If there are no major issues, the process goes to step eight. If there is, you can renegotiate your offer based on what needs to be fixed, or you can withdraw it.
Now is the time to go back to the mortgage lender who pre-approved or pre-qualified you and choose your mortgage. You will be presented with various options based on your unique financial situation, including fixed-rate, variable-rate, 15-year, 30-year, or special programs such as VA loans or FHA loans. Work with your mortgage lender to select the option you feel the most comfortable with.
Your lender will have your new home appraised so they have their independent value of it. The appraisal is to ensure that all parties involved are paying a fair price for the house.
No one looks forward to all the paperwork involved in buying a home, but it’s a necessary part of the process. Fortunately, everything will be arranged by your lender and title company and, when you’re finished, you’ll know you are the legal owner of your new home.
After signing the final paperwork to complete the purchase, you are now the owner of a new house. It may take a few days for your loan to be funded once the paperwork has been returned to the lender, but once that check is delivered to the seller, you’ll be all set to move into the home of your dreams.
Marina Di Francesco 1001 - 65 Skymark Drive Toronto, ON M2H 3N9 June 25, 2022 Michelle Schipper, Broker Avery Noik, Sales Representative Harvey Kalles Real Estate Ltd. Dear Michelle and Avery, Since 2005, I have had a long term business relationship with Michelle Schipper. She has been my Real Estate Agent for my three moves in the Toronto area. When I decided to sell my condo, I immediately called Michelle. I knew from her past performance that her team would provide me the best service. I was not disappointed. In fact, she successfully assisted me through a challenging sale. The real estate cycle in January 2022 was a seller market, by May ...— Marina Di Francesco
Finding myself in the stressful situation of having to sell my parent's house (the home where I spent the last 36 years living with them and my children), seemed like a daunting task. I turned to my closest friends and asked for recommendations in finding a trustworthy and experienced broker - one who could help guide me. One of my oldest friends introduced me to Michelle Schipper, promising me that she was the best in the business. “Experienced,” “committed” and “very helpful” are the words I would use to describe Michelle. This was a very emotionally complex decision since the home I was living in belonged to my parents. I was still dealing with t...— Anet L.
Truly we appreciated your assistance in selling our rental house during these stressful COVID times. It was an extremely complicated situation, due to a difficult tenant, yet you still managed to sell it without any showings, and you made it easy. You went above and beyond to help us sell this house. It was such a comfort to know you were always on top of everything. Throughout the duration of the negotiation, you couldn't have been more friendly and professional along the way - making yourselves available in the evening and on weekends, proactively getting answers to our various questions, and making the entire process much easier than attempting i...— Amine & Nadia E.
We’re a mother and son team proud to bring over 25 years of buying and selling experience. We’ve helped hundreds of clients buy and sell their dream homes within the GTA real estate market.