Whether approaching the purchase of your first new home or investing in an additional property, establishing……all related requirements in the form of a Buyer’s Action Plan really helps focus our efforts together. This process helps us both understand the lifestyle you want in purchasing your new home and helps identify critical points like affordability and what specific financing options are available for the often many unforeseen costs associated with purchasing a home. It’s best to determine these requirements, and just precisely where your new home will be, and what district most appropriately fits your needs, wants and affordability.
We then search the MLS system to locate all applicable homes within the parameters determined.
Obtain Mortgage Pre-approval
When applying to lending institution, you will need:
- Letter of employment confirmation.
- List of your assets.
- List of your liability.
- Social Insurance Number.
- Chequing account number.
- Lawyer contact information.
Lender will confirm maximum mortgage they will loan you; or determine the size of; mortgage based on the payments you are comfortable with. These are generally determined using two lending principles:
- Gross Debt Service (GDS): which means your housing cost should not exceed 32% of your gross family income.
- Total Debt Service (TDS): which means that your monthly debts should not exceed more than, 40% of your gross family income.
Preparing the Offer
Together we write your “Offer to Purchase” with price, terms, conditions, possession date, and chattels (what’s included) that will be proposed to the seller.
A deposit cheque must accompany the offer.
We will meet with the sellers and their Realtor to negotiate on your behalf the differences you and the seller may have until an agreement is reached. We will be in constant contact with you through these negotiations and will follow your instructions.
Sometimes the sellers can counter our offer, at this time flexibility goes a long way.
While working with you, we provide objective, and experienced advice.
We will provide you with a signed copy.
Obtain Mortgage Approval
Send a copy of the offer and MLS listing to the lender.
Appraisal report may be ordered.
Lender will approve and submit to CMHC (if applicable) for final approval.
CMHC insurance premium is required for a down payment that is less than 20% of the purchase price.
The premium you will pay is a percentage of the loan either paid on possession or it can be worked into your mortgage payments.
Make your offer a Firm Sale
Satisfy any buyer’s conditions on the “Purchase to Offer”. These may be subject to:
- Financing approval.
- Home inspection.
- Condo document review.
Upon removal of conditions, the property is considered “SOLD” to you, pending the exchange of funds and transfer of title on the agreed possession date.
Select a Lawyer specializing in Real Estate
Notify us of your choice so we can provide them with the necessary documents. If required we can make a suggestion on real estate lawyers that we work closely with.
Set up appointment with lawyer to sign papers.
Arrange for funds to be transferred to lawyer to close transaction.
Any outstanding money owed for down-payment is transferred to the lawyer for the seller to close transaction.
Final Details
We are available to guide you through all the details.
Arrange for insurance coverage on your new home.
Arrange for gas, utilities, telephone, and cable.
Meet with us to inspect the property the day before possession.
Take possession on closing date (12:00pm).