When buying a home there are three parties that you will need to consult along the way. A realtor, a mortgage broker, and a lawyer. If you are buying a home without a mortgage then you obviously do not need to consult a mortgage broker.
The steps to buying a home are as follows.
1. Get pre-approved by your mortgage broker. A pre-approval has two primary purposes, the first is to help you determine how expensive of a home you can afford, the second is to secure a rate hold so that you are protected from interest rates rising during your home search. You might be tempted to go straight to your bank at this point but don’t, a mortgage broker will show you all of your options and save you a significant amount of money. Additionally a mortgage broker represents you and not the bank.
2. Consult a realtor. Once you know how much you can afford, have your realtor start searching for properties for you. Make sure you take your realtor with you every time you view a house. If you go into an open house or a show home alone you may lose your ability to have a realtor represent you, which could put you into a weaker negotiating position. When you find a house you like write an offer. If you agree to a price with the seller, then it is back to the mortgage broker.
3. Arrange your mortgage. Once you have an accepted offer to purchase it is time to get your full approval. Make sure you do this right away. Gather your job letter, your pay stubs, and your proof of down payment and send it to your mortgage broker. He or she will help you choose the mortgage that best fits your needs and will represent you throughout the process. Once you have your final approval, you can waive your financing condition and move on to the next step, meeting with the lawyer.
4. Meet with you lawyer. Your mortgage broker and realtor will send all of the relevant documents to your lawyer about two weeks before closing. Your lawyer will then verify all of your documents and arrange an appointment for final signing. Prior to that appointment they will advise you of the amount of money required to close the deal and will have you bring a certified cheque or bank draft to the meeting. After you have met, your lawyer and the sellers lawyer will finalize the documents and transfer the money from you to the seller. You are almost done!
5. Take possession of your new home. The last and final step is to take possession of your new home. You will meet your realtor at your new home and he or she will provide you with the keys. Congratulations! You just completed the process of buying a home.
