As a First Time Home Buyer, where do you start? There is so much information out there that finding the proper steps can be overwhelming… We are here to provide you with the 9 steps required to buy that we use with all our clients!
STEP 1 – Budget and save up.
An effective budget will map out your plan to set aside money for your down payment and any additional closing costs. Many first-time homebuyers are surprised when we share how little you actually need to purchase a home. Let’s put the rumors to rest… A minimum down payment on a home in Saskatchewan is 5% of the purchasing price. For example, a $130,000 home requires, from you, $6,500 down payment. Or, a $300,000 home requires a $15,000 down payment. Once you have the down payment, you are ready for Step 2!
STEP 2 – Get Pre-approved
A pre-approval is free and accomplished by a mortgage broker or banker. What they do is take a look at your entire financial situation to determine how much purchasing power you have; aka whether you can afford a $130,000 home or a $300,000 home.
STEP 3 – Call us.
And we will guide and help you through the entire home buying experience: from the moment you get pre-approved (step 2) to well after the possession day to ensure you are settled and happy in your new home. Having been part of a real estate team that has been in the industry since ’87, we have all the tools ready to help you find the perfect home, negotiate to get the best deal and ensure you are always properly protected. Think about your immediate needs, future plans, and lifestyle. With this in mind, you will have a good idea of what we are looking for in a home: location and home specifics. I will then send you homes that match your criteria and others I believe may be a good fit. Once you see a property/properties that pique your interest, together we start home shopping! We do this process until we find the right home.
STEP 4 – Make an offer.
Once we find a home and want to make an offer, paperwork is involved. This paperwork includes the price, conditions (ex: home inspection), deposit, and possession date. When completing the paperwork, we suggest making the offer conditional on the outcome of the selected home inspections. After finalizing the paperwork, we will present the offer to the sellers’ agent. The seller then has the option to either accept, reject, or counter the offer.
STEP 5 – Finalize the deal.
When we have an accepted offer (the sellers accept our offer and conditions), our job is to remove all the conditions stated in the offer. For example, this is when I contact your mortgage broker or banker to ensure the financing is in place, pull title on the property, organize home inspection, etc. Once we receive the final approval of your mortgage and all conditions are satisfactory, we are ready to remove the conditions! This means the sale is final and the home is yours.
STEP 6 – Home insurance.
It is important and most of the time mandatory to have home insurance in place prior to possession. It guards your lender’s investment against loss or damage caused by covered risks like a fire or vandalism.
STEP 7 – Set up utilities.
This should be done at least 14 days prior to possession to ensure the services are turned on at your new place for the day you move in. Visit www.expressaddress. com. This site provides a convenient and simple method to connect, transfer or disconnect residential services for telephone, electricity, natural gas, water, and security services as well as updates your address for everything from your driver’s license and health cards to pet licenses.
STEP 8 – Sign at your lawyers.
When you meet with your real estate lawyer, the first question they will ask is whether you have home insurance lined up (see step 6). When meeting with the lawyer, they will walk you through the paperwork required in order to transfer the house in your name, ensure payments are finalized, and organize your property taxes. At this time, you will be required to provide your downpayment in either a certified cheque or e-transfer.
STEP 9 – Possession Day!!!!
This is the day you gain legal possession of the home. Your lawyer completed the paperwork and you receive the keys. Congratulations on your new home!
Any questions? Contact us! We are here for you.
Taylor and Léo Morrison
