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Step By Step Guide to

Choosing The Right Home

Canada Edition 2019

Step One

Pre-Approved Mortgage

Get a mortgage pre-approval to know exactly how much you can afford. The pre-approval guarantees your rate for up to 120 days. Also, it shows sellers you are serious about buying the property.

Step Two

Preparation

Now that you know your price range, make a list of property must-have such as: neighbourhood, type of home, property condition, house features, etc. At this point you should find a real estate lawyer to ensure your interests are protected.

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Step Three

The Search For The House & The Agent

With your pre-approval, property must-haves list, and a real estate lawyer at hand, you are ready to start house hunting! You can do the leg work, but most Canadians find a real estate agent to help with the search. Real estate agents have a lot of information on what is available on the market and the current selling prices. Show your property must-haves list to your real estate agent, and let them do their magic. For the condition of a particular property do yourself a favor and hire a professional home inspector.

Real Estate agents preparing the paperwork involved in making an offer to purchase and closing the sale. Your lawyer should review all offers. Make sure your real estate agent met your needs, as you are responsible for all decisions. Homefund has clients with positive experience from real estate agents and is happy to recomend their services.

Once you have found the right home, visit it at least twice in the daylight and twice at night.

Step Four...almost there

Making An Offer

Once you found the right home for you, decide on a figure and have your agent prepare the Offer (The Agreement of Purchase And Sale). With your agent list everything you want included. Get your lawyer to check out the Offer before making it a Firm Offer.

Firm offer: You will buy the property as outlined in the offer of purchase and that there are no conditions attached. Once the vendor accepts the offer, you are both bound to the agreement.

Conditional offer: You will buy the property if certain conditions are met. We highly recommend to include a condition on financing, especially for high-ratio insured mortgages.

If you have a condition on financing clause, get in contact with your Homefund mortgage specialist right away. You will need the following information:

  • Copy of the accepted Offer To Purchase,
  • Copy of MLS listing (if listed on MLS),
  • Completed and signed application,
  • Confirmation of your earnings if you are salaried: signed letter of employment, 3 years tax returns and assessments if commissioned,
  • Confirmation of your earnings if you are self-employed: 3 years tax returns and financial statements,
  • Confirmation of your down payment:
  • For purchasing a condominium, a financial statements for the condominium corporation
Once all conditions have been satisfied, a deposit is required as a commitment to the purchase. The deposit is made payable to the listing agent in trust. The deposit will be applied towards your down payment. You may request interest on the deposit.

Step Five

Closing The Deal

And Taking Possession of Your House

After the mortgage has been approved and all conditions waived, you must deliver the following documents to your lawyer:

  • The complete accepted offer to purchase (all schedules, waivers, etc)
  • Certificate of Fire Insurance. The insurance company will need to know the details of the property and the Mortgage Company. Lenders usually require you to arrange for full replacement value of the building.
  • Survey signed by a qualified land surveyor.
  • Your lawyer’s name, address, and phone number so that the mortgage instructions can be sent to them.
  • You should arrange for utilities such as electricity, water, fuel, and telephone to begin service in your name.
  • Meet with your lawyer few days before the closing date to go over all details. You will be provided with a dollar figure so that you can prepare your certified cheque, made in trust to the lawyer. This amount will cover for the balance of the down payment, Closing Costs and Adjustments

On closing day, the lender will provide your lawyer with the agreed mortgage funds. Your lawyer will register the property and the mortgage in your name. Your lawyer will obtain the keys and the deed of your new home.

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