Title: Homebuyer’s Guide To Purchasing A Home In Ontario, Canada
The whole buying a house thing can sometimes be a little overwhelming at times. And honestly, it should be, considering it is one the biggest purchases and investments for a majority of us. All those hours one spends working and saving every single penny for your dream house are all realised when you find that one particular house that matches your vision of an ideal house. But it’s not all that easy. Before making the big move, there are hundreds of factors that need to be taken to consideration in order to maintain financial stability and a solid ground even after the big purchase. Also, understanding the whole buying process in your region, in this case, Ontario, managing finances and mortgages and whatnot, there’s a whole list of things one needs to keep in mind before making the final decision.
And because we are only human, we tend to miss out on things sometimes. So here’s a quick guide for every home buyer who is planning to buy dream-house in Ontario, Canada.
1. Create a budget
Before getting on with the buying process, a person needs to have a budget planned out. It should ideally include all the upfront costs like the amount to be paid as the downpayment, closing costs and ongoing costs that will follow. For instance mortgage payments, insurance, property taxes bills and routine repairs and maintenance. One often tends to ignore the latter but that is the part that takes up most of your income during the initial time following the purchase. Creating a detailed budget plan will help you narrow down an exact price that you can you comfortably afford and manage.
2. Get-approved before starting the house hunting process
Real-estate market has evolved a lot during the last few years. So much so that there are all these unwritten rules that needs to be followed to get real estate agents to attend to you properly. And most of them wouldn’t do that in the present day scenario if you are not pre-approved for mortgage. Now, some of you might not be familiar with it. A preapproval in general terms is a written commitment from a lender confirming that they are willing to lend the buyer the maximum credit amount at certain of interest rate. The approval is completely dependent on your credit, income and the down payment.
Also, if you cannot manage the traditional 20% down payment for the mortgage, you always have other options but for that through research needs to be done.
3. Choose a realtor
Although, having an agent is not compulsory. It does makes things better because there are many factors and things first-time buyers tend to miss out on. Thus, having somebody around, who has a deep knowledge of the market makes things easier. A good realtor can make this complicated experience a breeze while acting as your very own advisor, consultant and negotiator, all at the same time.
Now for the ones who decide to go down the other road and do all the legwork themselves, narrow down all your requirements. The location, size of the house, any special features you need and your future plans, everything should be taken into consideration before beginning the house hunting process. Also, one needs to remember that even though you are pre-approved for mortgage, just like you, the lender is also under no obligation to go through with the pre-approval if your financial situation changes before the purchase. Hence it will be obsolete.
4. Make an offer
After narrowing down on your dream house, make an offer of purchase to the seller i.e an agreement of purchase and sale. Being a legal contract, this document is prepared by a real estate agent or a lawyer and should have all your details. It also carries all the address of the house in question, the amount you are offering to pay for it, any added information or clause from your end and the final date, when you’ll take the possession of the house. This agreement is finalised only when all the conditions mentioned in the contract are fulfilled.
5. Get the house inspected
Although, it’s completely up to the buyer but hiring an inspector might save you from a real disaster, especially, when it comes to resale homes. In majority of cases, there are many tit-bits that tend to get ignored by the first time buyers but an inspector will give an honest account of all the problems and condition of your not-so-dreamy house. Also make sure to add this clause in your offer, because the inspection might change your mind about buying the house and if the clause is mentioned in your agreement, it will allow you to negotiate the pries and repairs with the seller or just withdraw our offer altogether.
6. Closing the deal
After everything mentioned above is sorted, finally begins the last and the final step were you get to finalize the deal at last. For that, you will need an official mortgage letter, confirming the amount the lender is ready to finance your purchase. Also, the buyer should double check everything and review all the conditions that were the part of the offer are fulfilled. The the step of the whole buying process generally takes place in your lawyer’s office. There the final signing takes place and the buyer hands over the down payment to the lawyer, along with all the additional costs. Then the lender gives the remaining borrowed amount to the lawyer. After the money is paid in full, the house is registered in your name and you finally receive the deed and keys to your home sweet home.
Now, the whole process is without a doubt tiring, extremely long and will most likely take a toll on you. But that being said, envision all those special memories that you have associated with your home, where you grew up. Isn’t that special? Wouldn’t you want your kids to have exactly that feeling associated with the house you are outing all this hard earned money in.