First Time Buyer
Are you a First Time Buyer?
Not sure where to start in the Home Buying Process. Let us help, we’re both an Accredited Buyers Representative ABR® and Certified Condo Specialist CCS®. We have put together an step by step First Time Buyers Package to help you with the purchase of your first home.
It might seem daunting, but we’re here to answer any question and guide you through the whole purchase.
1) Interview us to:
- Discuss financing options and affordability;
- Discuss costs associated with purchasing a home;
- Determine your needs and preferences in a home;
- Review types and styles of houses;
- Review areas and districts that fit your needs, wants and affordability;
- Search the MLS system to locate homes within the parameters determined.
2) Obtain Mortgage Pre-approval:
- Apply to lending institution, you require;
- Letter of employment confirmation;
- List of your assets;
- List of your liability;
- Social Insurance number;
- Chequing Account number;
- Lawyer contact information.
- Lender will confirm maximum mortgage they will loan you; or determine the size of; mortgage based on the payments you are comfortable with. These are generally determined using two lending principles:
- Gross Debt Service (GDS): which means your housing cost should not exceed 32% of your gross family income;
- Total Debt Service (TDS): which means that your monthly debts should not exceed more than, 40% of your gross family income.
3) Preparing the Offer:
- Together we write your “Offer to Purchase” with price, terms, conditions, possession date, and chattels(what’s included) that will be proposed to the seller;
- A deposit cheque must accompany the offer;
- We will meet with the sellers and their Realtor to negotiate on your behalf the differences you and the seller may have until an agreement is reached. We will be in constant contact with you through these negotiations and will follow your instructions;
- Sometimes the sellers can counter our offer, at this time flexibility goes a long way;
- While working with you, we provide objective, experienced advice;
- Provide you with a signed copy of the accepted offer.
4) Obtain Mortgage Approval
- Send a copy of the offer to the lender;
- Appraisal report may be ordered;
- Lender will approve and submit to CMHC (if applicable) for final approval.
- CMHC is required with a down payment of 5-10%;
- You will pay a premium which is a percentage of the loan either paid on possession or it can be worked into you mortgage payments;
5) Make your offer a Firm Sale
- Satisfy and remove by a notice any buyer’s conditions on the “Offer to Purchase”. These may be:
- subject to financing approval;
- subject to home inspection;
- subject to any other condition in offer.
- Upon removal of conditions, the house is considered “SOLD” to you pending the exchange of funds and transfer of title on the agreed possession date.
6) Select a Lawyer specializing in Real Estate
- Notify me of your choice so I can provide documents or I can make a suggestion of competent real estate lawyers;
- Set up appointment with lawyer to sign papers;
- Arrange for funds to be transferred to lawyer to close transaction;
- Any outstanding money owed for down-payment is transferred to the lawyer for the seller to close transaction.
7) Final Details
- I am available to guide you through all the details;
- Arrange for insurance coverage on home;
- Arrange for gas, utilities, telephone, and cable;
- Meet with me to inspect the property and take possession on closing date (12:00pm).
Here are a few important plans to help you save money.
Please contact us at 403-604-0300 with any questions or if you would like our buyers package.