7 STEPS TO THE BUYING PROCESS

1. YOU + YOUR LENDER

Lender can be a bank or a mortgage broker
BANK can only refer you to their bank and the mortgage options they have
MORTGAGE BROKER
- can search all banks and monoline lenders (are lending banks that focus on providing loans such as mortgages. They do not offer checking or savings accounts or other related services
- they are motivated to gain a referral or repeat client from you, so they will do their best to get you the best price
- will find the best rate
- more certification needed than someone organizing mortgages at a bank
HAVE ORGANIZED:
- tax returns
- proof of employment
- any loans or debt
- pay stubs
Ask questions like:
- what if I need to finance a new car?
- other things that will impact mortgage payments (unforeseen circumstances)
- penalties associated with the mortgage
- what happens at the end of the term?

VARIABLE RATE: your rate will change depending on the market.

FIXED RATE: rate will not change once locked in

The rate that the mortgage broker or bank will give you will most likely have a 90 day hold and will have to be reassessed after that.

BENEFITS OF HIRING A REALTOR:

will have connections with other realtors for “pocket inventory”
has access to exclusive listings and properties that may not be up on realtor.ca yet
will schedule showings
can preview properties for you
is completely loyal to the buyer
coordinates all dates and professionals needed
will ensure that everyone is doing what they are supposed to be doing
interpret documents, reports and any info
be your guide on the home buying process
there to answer all of your questions

When you sign on with a realtor, you are their CLIENT. That means that you have certain privileges that you would not have otherwise.

Once you have chosen a place and are placing and offer, information you will have are:
- price
- deposit amount
- closing date
- inclusions
- conditions
Nick will send a copy of an Agreement of Purchase and Sale from OREA that is broken down clause by clause to help the Buyer understand the entire form and what they will be signing (we have this form under the “Understanding Forms” section of the Wiki)
The deposit will also be needed at this time
- it is typically 1-5% of the offer price
- it is a sign of good faith to the Sellers
- it applies to the total sale price
- it is deposited upon receipt before the sale if firm
- if the sale falls through due to inspection or issues, it is refunded in its entirety to you without any penalties or fees
- two forms are completed if a sale falls through; Termination of Agreement and Mutual Release
- the full deposit amount is returned to the Buyer with no penalties or fees

HOME INSPECTOR

Usually $450-$550 for a 3 hour inspection and report
This is a snapshot of the state of the home at the time. It is not an in-depth inspection meaning they evaluate what they can see
Can refer specific inspectors (ie: septic)

IF issues arise in the home inspection, there are 3 types;

1. ACCEPTABLE PROBLEMS (live with it….ie: the paint is not to your taste)

2. RE-NEGOTIATE PROBLEMS (appx. 1% of the purchase price of the home)

3. WALK AWAY PROBLEMS (very expensive to fix and/or are in the key systems of the home like the septic or foundation)

LAWYER

LENDER

Notice of Fulfillment is submitted
THIS IS THE POINT OF NO RETURN
The work turns to the Lawyers to deal with the Title Search and execute the transfer of the ownership
Your Lender is monitoring rates for changes and opportunities
The final walk through happens (if it was negotiated)
Closing Costs:
- Lawyer Fees
- Could be Land Transfer Tax (not if you are a 1st time home buyer)
- All costs are appx 1-1.5% of purchase of price (make sure you have this aside ahead of time)

Lawyer transfers the ownership
Try not to make your move day the same day as you get the keys (best practice is to close mid week and move on the weekend)