Purchasing your first home is the most exciting purchase but can be overwhelming with the amount of contradictory information available.
To facilitate the process, here are the 8 appropriate steps to take when purchasing your first home:
1 – Budget & save up.
An effective budget will map out your plan to set aside money for your down payment and additional/closing costs. If there is a substantial amount saved up, this is how you’ll know you’re ready to buy a home. Many first time home buyers are surprised when we share how little you actually need to purchase a home. Let’s put the rumours to rest… a minimum downpayment on a home in Saskatchewan is 5% of the purchasing price. For example, a $130,000 home requires, from you, a $6,500 downpayment. Or, a $300,000 home requires a $15,000 downpayment.
2 – Be 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; whether you can afford a $130,000 home or a $300,000 home. It is important to take this preliminary step to make the home buying experience easier.
3 – Call us.
We will guide and help you through the entire home buying experience: from the moment you get pre-approved to well after the possession day to ensure you are settled and happy in your new home. Having been in the the real estate industry since ’87, we are connected with the best professionals out there to protect you and help make the purchasing process hassle-free: lawyer, mortgage broker, home inspector, contractors, and more. By calling us, we establish a game plan to help find you your perfect home, negotiate to get the best deal and ensure you are always properly protected.
4 – Home Shopping.
After knowing how much you can afford (in step 2), think about your immediate needs, future plans and lifestyle. With this in mind, we will have a good idea of what we are looking for in a home: location and home specifics. We will then send you MLS listings that match your criteria and others we believe may be a good fit. Once you see a property/properties that peak your interest, together we start home shopping! We do this process until we find the right home.
5 – 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 to make the offer conditional on the outcome of the selected home inspections. After finalizing the paperwork, we will present the offer to the seller. The seller then has the options to either accept, reject or counter the offer.
7- Finalize the deal.
With an accepted offer, our job is to remove all the conditions stated in our offer, for example financing, pulling title, 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.
8- Possession Day.
This is the day you gain legal possession of the home. Your lawyer completes the paperwork (so the home is in your name), payments are finalized and you receive the keys. Congratulations on your new home!
Are you thinking of starting the process of buying your first home? Contact us. We are here for you.