The Buying Process

 "Advice and Guidance"

In A Nutshell...

1.  Define the "HOW":   How can I/we purchase a home?
                                        Do I/we need: A) A mortgage, use a LOC (line of credit), cash or a combination of the 3?
                                                               B) To sell our house in order to purchase a new home?
                                                               C) To give our landlord proper notice?         


2.  Bank/Lender Approvals (mortgage or LOC):  Meet with 2- 3 lenders as each will offer different mortgage/loan products and rates
                                                                                 Ensure one of these is your personal bank
                                                                                 Arrange to meet with a mortgage broker which operate differently then banks
                                                                                 Mortgage Brokers can sometimes offer aggresive rates and products vs traditional lenders
                                                                                *Ensure you have a pre-approved amount BUT DO NOT RUN CREDIT SCORE!
                                                                                **A good broker can gather info needed and produce a conditional pre-approved amount


3.  Define your "NEEDS":  Meet with a QUALIFIED Real Estate Sales Representative (knowledgeable and experienced)
                                             Have your NEEDS list ready - # of beds, # baths, Garage?, Area?, etc
                                             You may find your pre-approved amount may or may not cover basic needs
                                             Your Real Estate Representative will guide you in refining and adjusting criteria
                                             *Purpose of this meeting is to define basic criteria and area of interest within budget


4.  View Prospects:  For many this is the fun part!
                                   BUT not until you have clearly defined STEP 3
                                   During this time, both Buyer and Sales Representative will create a comfort level for needs vs budget
                                   Buyers may realize that they: A) Can accomplish the same for less OR may need to increase budget
                                                                                  B) Were not ready for amount of renovations needed for type of home in an area

                                  *These are all good things and can be refined fairly quickly at early stages of the search


5.  Making and Offer:  This is when the nerves start to kick in...the fear of not knowing what will happen.
                                      A QUALIFIED Real Estate Sales Representative can easily put you at ease.
                                      Becoming educated with the process will allow buyers + sellers to obtain comfort in the process.
                                      The offer is traditionally created on OREA Standard Purchase and Sale Agreement Forms
                                      It would be comprised of standard clauses designed to protect all parties involved
                                      Additional Criteria To Be Included: Legal Names of Buyers
                                                                                             Legal Address and Unit #
                                                                                             Legal Description
                                                                                             Deposit Amount 
                                                                                             Purchase Price
                                                                                             Irrevocable Time (how long offer is good for by the buyer)
                                                                                             Closing Date (day the buyer get posession)
                                                                                             Chattels (fridge, stove, washer/dryer, blinds, pool equipement etc...)
                                                                                             Rental Items (hot water tanks, furnaces, ac etc..)
                                                                                             Conditions Schedule (Sale of Buyer Property, Financing, Inspection. etc)


6.  Accepted Offer:  This is where both buyer and seller agree on basic terms and conditions:
                                                                                          A)  Price
                                                                                          B)  Closing Date
                                                                                          C)  Chattel Inclusions
                                                                                          D)  Conditions - Financing, House to Sell, Inspection etc...

                                   If the offer has:
                                   A) NO conditions and both parties come to terms on details, the house is SOLD!
                                   B) Conditions, then the house is SOLD when the conditions have been fullfilled and removed before the time period that
                                       it needed to be completed by.  Conditions can be both on Buyer AND Seller to fullfill and remove.

At this point there is a firm legal sale of a property.  

This would stimulate the following steps:  
                                   1.  Arrange for ALL utilities/services to be put into the Buyers name for day of closing
                                   2.  Arrange a lawyer to close the transaction (Real Estate background preferred)
                                   3.  Arrange for house insurance for day of closing.  Typically, this is a condition for any mortgage lender and the lawyer
                                        will need proof of the insurance binder on or before closing.
                                   4.  Arrange moving details 
                                   5.  Perform a recommend final walk through with your Sales Representative
                                   6.  Lawyer will advise typically days prior to closing the amount needed to bring when you sign docments.  
                                        *This should be a Bank Draft or Certified cheque.  Papwork typically signed days before closing.
                                   7.  DAY OF CLOSING PICK-UP YOUR KEYS THE HOUSE IS YOURS!!!