So you have made the decision to buy a house. Now what? Buying a home can be both exciting and a bit overwhelming. But you don’t have to go it alone. With so many things to think about and do, it’s important to have a team you can trust that will work for you to make the process go as smoothly as possible and offer expert advice along the way.
Choosing your real estate agent
Buying a home is a very personal and sometimes emotional decision. Having a Realtor representing you in a real estate transaction ensures someone is working exclusively for you and for your best interests.
Your Realtor has fiduciary duties to act in your best interest, to be completely transparent and be accountable to you and only you.
The advantage of this to you is it allows your Realtor to share their expert opinion, giving you full advantage of their knowledge and expertise. It is their duty to answer questions that you may not have even thought to ask.
There will be a number of professionals involved in the buying process and it’s the buyers’ agent’s role to make sure that you are in touch with the right people to help make the process go smoothly. There are many steps to purchasing your home, including mortgage pre-approval, home inspection, legal review, house documents to review, all in a specified time period and your Realtor’s job is to keep everything on track and running smoothly for a successful transaction. After the sale, a good buyers’ agent will continue to be a valuable resource, providing you with trusted home professionals and solid advice on how to improve your property.
Choosing your lender
Banks and mortgage brokers can sometimes offer different terms and rates, so it pays to take some time and do a bit of research. Mortgage brokers work for you. They act as a link between you and the actual lenders. They do not represent any one lender but instead negotiate a mortgage on your behalf with all the lenders. They are paid by the lender so their expertise is free to you. Bank specialists are employed by the bank and represent the bank.
Getting pre-approved for a mortgage will protect you against rate hikes while you search for your new home. Most pre-approvals are valid for three months. The pre-approval is not a guaranteed approval of a mortgage. Your lender will still have to approve you for a mortgage after you have an accepted Agreement of Purchase and Sale.
Avoid applying for new credit or loans while you are shopping for your new home. Your credit score is the most important factor when seeking approval for a mortgage and you don’t want to do anything to drop your credit score. So be mindful of your spending and don’t rack up credit card debt or purchase furniture on credit or lease a new car as all this will affect your credit score.
Instead, work toward improving your credit score by paying down debt.
Choosing your home inspector
Although it is not required, it is strongly recommended that you have your potential new property inspected by a qualified home inspector. A home inspection is a thorough assessment of the home’s major components and systems. This information allows you to make informed decisions about the value of the home you wish to purchase.
If possible, be present for the home inspection. It allows the inspector to discuss and explain any issues about the property that may arise and you can become more educated on the house you are interested in.
Expect the process to take from two to four hours depending on the size of the home and types of inspections required. In addition to a home inspection, some properties may require additional inspections of sewer lines, well water, septic systems, radon tests and more.
Your Realtor and home inspector can advise you of any necessary additional tests.
Choosing your real estate lawyer
Finding the right real estate lawyer is also a crucial part of the home-buying process. This can be the biggest purchase in your lifetime so it pays to hire an expert. It is important that you select a lawyer who specializes in real estate law and not settle for someone you know or a lawyer who has done other unrelated work for you in the past.
Your real estate lawyer will have a number of responsibilities, including reviewing all the legal paperwork including the Agreement of Purchase and Sale, mortgage documents, title documents, performing title search, explaining title insurance, registering the deed and protecting your interests should any issues arise.
On the closing date your lawyer will ensure payments such as deed transfer tax, adjustments for property taxes and fuel adjustments, registry of the mortgage and deed have been paid on your behalf and all the necessary paperwork has been filed.
Your lawyer will also prepare the transfer of property title from the seller to you and ensure that, you the buyer, have met all your financial and legal conditions of the sale.
As a final step, your lawyer will release to you the keys to your new home.
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