Being a first-time home buyer in Toronto, there is a lot you need to learn. It is going to be a major investment in your life. So, the more you know, the improved your decisions will be. Here is how to carry out the process without getting stressed.
Pre-Qualify for a Mortgage
The very first step to buying a house in Toronto is to know how much your bank is ready to lend you. While you get pre-qualified for a mortgage, your lender will check your income, your debts, your down payment, and your credit history. The written pre-approval comprises a guaranteed interest rate that is generally valid for 3 months. Letting you know how much mortgage you can get; this pre-qualification helps you target the price range of homes accordingly in your search. Focusing your house hunting efforts, you will be able to find the perfect home without risk and uncertainty of financing.
Prepare your Wish List
Know what you need and want in your home. Check what are your must-haves. What are the things that are optional and what are yours not at all important things? How many bedrooms are you looking for in the home? Do you want an open outdoor space? Choosing the perfect location is also going to be an important decision. Select a Toronto neighborhood that makes you feel at home.
Choose the Best Realtor
Buying a house is a big purchase and you can’t even think of doing it alone. Find a great realtor in Toronto who works completely for you. You will need a lender to get you familiar with your financing options and a lawyer to take care of all legal aspects of the purchase. You will come across many professionals of varying quality, so take recommendations from your friends and family, do need research and don’t hesitate to interview various people.
Hunt for Home
Once you have chosen a great Toronto Realtor, it’s time to start viewing listings and houses. Your real estate agent will send you custom listings matching your criteria. House hunting is all about screening listings, observing properties online, and going out physically to look at homes. Getting a feel for the different Toronto neighborhoods, you get a chance to polish your wish list, and ask questions. While a wish list helps understand what are your wants and needs, walking into a perfect home helps you take the right decision.
Making an Offer
Congratulations! You have found out a perfect home with your great searching efforts. It satisfies all your wants and needs, it’s within your budget, and it feels right. Now, the offer process is both thrilling and worrying. It starts with drafting the Agreement of Purchase and Sale (APS). It is a legally obligatory document which covers the whole lot right from the price you have to pay, to the enclosures you want, to your date you of taking possession, to all the conditions of the deal. After you submit your offer, it’s up to the seller to accept it, reject it or sign back a counter offer. You may have to compromise on minor things during these push-and-pull negotiations. But if you have a competent team of realtors like Sold By Anil by your side, they will try their best to get you what you want.
Meet Conditions, Give Deposit and Close Deal
After meeting the conditions within the Agreement of Purchase and Sale, you’ll submit a deposit of about 5% amount of the purchase price, which is seized in trust until close. At the closing point, the ownership and possession of the property are transferred from the seller to you. It happens after all the legal and financial compulsions have been met. It will be teamwork including you, your lawyer and your lender.