The buyer should plan as much as possible before beginning his research. He must evaluate his financial possibilities and all that will be required before beginning the “hunt”. This way, when he finds the house he wants, he will be in an enviable and efficient position to make an offer. Any delay, even a short one, may give another buyer the chance to make an offer that can be accepted.
Below are a few suggestions that will show you how to plan this process and greatly reduce the chances of a bitter disappointment. Let us help you, we can do all the preliminary work before we start looking for your dream home.
IMAGINE THE HOUSE OF YOUR DREAMS
The best way to save time and energy is to write down the features you are looking for in a new home. Let your imagination run wild! Then contact us to discuss your goals.
PRIORITIZE YOUR NEEDS
Once you have written your list, review it and indicate the priority of each item. Imagine your family as part of your daily activities. This will give you a more complete picture of the home that best suits your needs.
CHOOSE YOUR SECTOR
Examine the places you are considering. We can provide you with information about schools, taxes, shopping malls and cultural activities.
PRIOR QUALIFICATION
To save time and avoid potential disappointment, a representative of a financial institution or a mortgage broker can provide you with a mortgage pre-qualification based on your payment capacity and credit experience. Find out how much you can borrow as well as the amount of the down payment.
MORTGAGE PRE-APPROVAL
A representative of a financial institution or a mortgage broker is the right person for this step. A pre-approved mortgage guarantees that you qualify for financing up to a certain amount.
This will provide you with four (4) important benefits:
- You will store for properties in a price range that is accessible to you. You will avoid many disappointments!
- The financial institution will guarantee you an interest rate for a set period of time. This will protect you against any possible increase in interest rates.
- You will have more credibility with a seller during negotiations if you already have a pre-approved mortgage. This will allow you to downgrade the competition in the event that other promises to purchase are made at the same time. The seller will more easily agree to deal with you if he knows that your financial institution will grant you the mortgage you are looking for.
- Your broker will work hard to find you the property of your dreams because he will know in advance that if he finds what you want, he will be able to close the sale.
START YOUR VISITS
Now you are ready to visit houses with us. Feel free to take detailed notes on each property you visit, as memory has its limits, especially after visiting several houses in a short period of time.
MAKE AN OFFER
Once you have found the house that meets your expectations, it is time to write a promise to purchase. This is an exciting, emotional and complicated process.
Fortunately, you have an experienced broker at your side who will guide you through all the steps. Your broker will draft the offer and give it to the listing broker, who in turn will meet with the seller to discuss the offer.
The seller may accept the offer as is or refuse it entirely. He or she may also choose to make a counter-offer, stipulating the aspects that he or she feels are unacceptable.
The offer to purchase does not become a contract until the accepted and duly signed copies have been given to all parties involved.
CALL ON AN INSPECTION SERVICE
The inspection of the property by a professional is an essential step in the purchase of a property. The inspector will examine all aspects of the property including the structure, roof, exterior cladding and major installations (electrical, plumbing, heating, air conditioning and ventilation) without worrying about cosmetic aspects.
Your offer to purchase should contain a clause stipulating that the purchase is conditional on the buyer having the property inspected by a professional of his or her choice. This will protect you against possible major defects or unforeseen expenses that will have to be incurred in the short or medium term.
MORTGAGE LOAN APPLICATION
When you apply for a mortgage, your lender will give you an estimate of closing costs. This document gives you an overview of the amount required for closing. The lender will also require an appraisal of the property you plan to purchase to determine if it is of sufficient value to secure the mortgage. After verifying your information, your creditworthiness and after analyzing the home appraisal, the lender will prepare a commitment letter. This document represents the lender’s promise to provide you with a loan on the day of closing.
Your financial institution will then forward the necessary instructions to your notary to prepare a mortgage deed. The notary will call you to his office to sign this document before the disbursement and signing of the deed of sale.
Your financial institution will also require that you have taken out fire, theft and civil liability insurance before remitting the amounts to the notary.
SIGNATURE OF THE DEED OF SALE
Congratulations! You are now a homeowner. We will be with you until closing day. At that time you will settle all the financial and legal details with the notary and the seller. You will sign the deed of sale and take possession of the keys to your new home.
