First Time Home Buyers
Purchasing your first home can be a very rewarding and yet confusing and stressful experience. We are here to help walk you through the process by guiding you through the following steps.
1) Get Pre-approved
Determine your monthly budget with all expenses. Although your income may be able to qualify for a certain higher mortgage amount, it might not fit with your lifestyle. From there, bring your budget to one of Nova Mortgage Brokers. Then based on your down-payment, income, and existing debt, your Verico Nova Broker can discuss the price range that works with your budget. At this stage, you can also get a rate hold from 90 to 180 days, which will protect you in the event rates rise before you purchase your home. Nova Mortgage Brokers will also discuss with you about the many perks of being a first time home buyer.
2) Chose a Realtor
Realtors know the market and work within it on a daily basis. They are up to date with current sales and listings. They are also the first to know when a new property is put on the market. Once they know your price range, they can research the market on your behalf and find you the right property that fits your criteria.
3) The Offer
Once you know your price range and have found the right property, it is now time for an offer. The seller can either counter, decline or accept your offer. Once fully accepted, time for the next step!
4) Arrange a Home Inspection
Home inspections are not mandatory by Mortgage Lenders but it is important for your protection to include this as one of your conditions on your offer to purchase. Inspectors evaluate the current structure/condition of the home to make sure there are no major issues with the property you are purchasing.
5) Get the Mortgage Approved
Although you are pre-approved, it is now time to get the full approval. It is at this time that you must prove your income and down payment and the property needs to be approved and finalized. Nova Mortgage Brokers will send all supporting documents to the mortgage lender. Once financing is in order and all other conditions are removed, the contract is finalized by paying a deposit.
6) Choose a Lawyer or Notary
Choose a Lawyer or Notary who specializes in real estate transactions. This professional is the one who registers you as the new owner of the home upon closing, calculates the statement of adjustments (total closing costs) and registers the new mortgage.
7) Property Insurance
You will require property insurance for your home structure which protects you in the event of a fire or another disaster (this type of insurance is covered if your home is part of a strata corporation such as a town-home or condominium). Although not required, one other insurance to think about is contents insurance for all types of homes (strata included). This insurance protects the inside contents of your home in the event of burglary, fire etc. were to happen.
8) Check the Legal Details
Once the offer is finalized, your legal representative can search the title of the property and start the legal process to transfer the title of the home to you as the new owner.
9) Sign Final Documents
A few days prior to your closing date, you will meet with your solicitor and sign all final documentation. At this time, you will provide the remainder of your down-payment (deposit was previously paid to confirm the contract) and all closing costs.
10) Move In!
On the closing day, your Lawyer or Notary will finalize the necessary documents, transfer money to the Vendor’s legal representative and then transfer final ownership to you. Registration of the home is completed on closing day. Then on possession day (which is normally different from the closing day ) the realtor will give you the keys and it is time to move in!