A Step-by-Step Guide for First-Time Home Buyers

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Yay! You’re finally ready to purchase a home. Now what? Do I just pick any realtor to find us a home? That could be a start but let's backtrack a little.

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Pre-qualification

Imagine going to the doctor’s office and asking for medication without telling them what’s wrong.  Getting qualified is like a doctor prescribing medication. You want to ensure they understand your background and situation so they can make the most informed decision about what you need.  Same thing applies in the mortgage space. You definitely want to start the process by talking to a licensed mortgage broker to understand more about the various mortgage products available to you, as well as what you qualify for.

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A mortgage broker will typically ask you specific questions about your income, debts, available down payment and credit score. All of this is necessary to figure out how much you can afford so you can begin my favourite process, shopping!

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Finding a home

Selecting a realtor can be overwhelming. Mo and I have always asked friends to recommend realtors. There is a sense of comfort when the realtor you are using has already worked with someone you know. It also helps that realtors live and breathe real estate, have their ear to the ground on the industry and have access to listings that may not be available to the general public.

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Your realtor will walk you through their process and once they’ve gathered enough information about the type of home and area you’re looking for, they will start the search and will begin booking home showings for you to visit.Once you find a property you love, your realtor will draw up and submit an offer on your behalf.

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Common offer conditions listed on an offer typically include a home inspection and a financing clause (designed to give you time to obtain a mortgage approval, but not always required).

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In the current climate, we’re seeing buyers waive both conditions to increase their odds of “winning” a home when submitting an offer. That’s why it’s extremely important for you to work with a mortgage broker in advance of submitting an offer to ensure you have comfort in your numbers and are putting your best foot forward.

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Congrats! Your offer was accepted - what do you do next?

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Let your mortgage broker know and we now start collecting the required documentation in order to obtain a formal approval from a lender.

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At a high level, documentation consists of an employment letter, pay stubs, proof of your down payment funds and a purchase and sale agreement. Your mortgage broker will then submit the deal to a lender that fits your needs. Once lender approves the deal and you’ve satisfied all the outstanding conditions, your lawyer receives instructions on funding your mortgage. They’ll reach out to you to sign the documents in advance of your closing date.

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On the closing date, your lawyer will reach out to let you know once the keys are available for pick up, and VOILA! You’re officially the owner of a house! Easy right?

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Got a question? Don’t hesitate to reach out and I’d be happy to help in any way I can.