Steps to Buying a Home: A Guide for First Time Home Buyers

"Karly, I have never bought a home before. Where do I even start?!"

Let me help! It is essential to be well-informed and prepared to navigate the process of buying a home, especially your first. Here is my step-by-step guide with all my tricks and tips! Connect with me if I can support your next purchase.

1. Know Your Budget - Get Pre-approved for a Mortgage:

Before starting your home search, you need to determine how much you can afford. You should consider your current financial situation, including income, savings, and debt. Don't forget to account for additional costs like property taxes, insurance, and maintenance.

Once you gather this information, you need to consult with a mortgage professional who will help you understand the maximum loan amount you will qualify for. This is how you will get pre-approved for a mortgage and obtain your overall budget. You have two options to get a mortgage pre-approval. You can either speak to your bank/shop rates at multiple banks, or obtain advice from a Mortgage Broker. Many people have a preconceived idea that Mortgage Brokers cost money - they do not! They are a one shop stop to obtain rates from different lenders, depending on your financial position. If you need any advice on reliable and knowledgeable Mortgage Broker, I'd be happy to connect you. How you obtain your pre-approval is dependent on your preference, either option is good.

2. Establish Your Wants vs. Needs

The Lower Mainland offers a diverse range of neighbourhoods, each with its own unique character, amenities, and price points. Research and visit different areas to find the one that suits your lifestyle preferences and meets your needs. You should also determine the size and how many bedrooms you may need. Is parking important to you or living in a pet friendly building?

Writing out a list of your wants vs. your needs can help you in the process. Just always keep your budget in mind!

3. Select A Realtor

Enlisting the services of an experienced real estate agent who specializes in the market you are interested in is essential. A knowledgeable Realtor® will guide you through the home-buying process, help you find suitable properties, negotiate offers, and handle all of the paperwork. They also have access to the Multiple Listing Service (MLS), which allows them to obtain additional information that the public doesn't have access to. Hiring a Realtor® is free - the sellers pay both the listing and purchasing agents commission.

When it comes to finding the right real estate agent for you, you should do research and not just hire the first person you talk to. You want somebody who is attentive, qualified, organized and matches your expectations - find somebody that knows that they are working for and alongside you!

You can learn more about the services that I provide here. My goal is to always make sure that my clients know that I am there to support them at any time and I work on their timeline. My assistance goes much further than just sending you listings, negotiating a deal and never showing up. I make a point to attend every showing and provide full services. If you need advice on potential repairs, renovations, lending, lawyers, any trades, moving companies, etc. I either have the knowledge or the contact to help you. I love this business because of the people I get to help and work with. I am in it to build long term relationships and to make a positive impact on your life.

4. Start Your Search - Time to Hunt for Your Home

Now you know your budget, identified your needs and found yourself a kick ass real estate agent, it is time to start looking. If you are working with a hands-on Realtor®, they should be involved sending you MLS listings based on your criteria, however, a lot of buyers also enjoy searching for properties themselves. If you want to browse online yourself, would recommend either REW or REALTOR.ca.

Once you come across properties you are interested in you can contact your real estate agent to make appointments or take advantage of open houses. Even if the property has an open house, it is still advantageous to book an appointment through your agent. Walk through the homes, assess their condition, and envision yourself living there. Pay attention to important factors like layout, natural light, storage space, any potential maintenance or renovation requirements, demographic and neighbourhood. Your mind on what you like might change 100 times, so may your location preference, and that is ok! Don't rush your search and learn on your Realtor® for guidance and questions.

5. Submit / Negotiate an Offer

When you find the right property your real estate agent can work with you to craft a competitive offer. When drafting an offer, it is important to understand the market conditions, recent comparable sales, and the seller's motivations. Ask your real estate agent to assist with this information and be prepared for potential negotiation and counteroffers. Your agent will help you navigate the negotiation process to secure you a favourable deal.

6. Work Through Subject Removals & Obtain a Deposit

Congratulations, you have an accepted offer! You have just agreed on the contract terms, price, completion/possession dates and deposit amount and now you have time to do your full due diligence on the property. You can choose the length of how long you have before subject removal; it is standard anywhere between 5-10 business days. This is the period where you work with your lender to finalize your financing, conduct an inspection, review strata documents (if you are buying a strata property), establish your home insurance, and any other subject terms you and your agent agreed to add. Ask your agent any and all of your questions during this phase so that you are comfortable with your purchase. Nearing the end of your subject removal period, you will also need to obtain your deposit from the bank. This amount is usually 5% of the purchase price and will be held in your Realtors® Brokerage in trust on your behalf.

Once you are satisfied with the property and have everything in order, you are ready to remove subjects. Your real estate agent will assist with these documents and as soon as they are in the hands of the other party, with your deposit, you have bought your home!

7. Prepare for the Closing/Possession Dates

Prior to your Completion date (this is the day you become the owner, the funds and title transfer over) and Possession day (the day you obtain keys and move-in), you will still need to be proactive setting up a couple of important items:

• Select a lawyer or notary to assist with your transaction

• Book movers and a moving truck

• Set up your Home Owners Insurance

• Set up or transfer your BC hydro, Fortis, etc.

• Forward your mail from your previous address

• Prebook your cable & internet provider

• Prebook a locksmith for new keys

• Plan any renovations/upgrades you may want to conduct

Usually within the week of the closing you will meet with your notary/lawyer in person to review and sign the legal documents as well as your mortgage documents. You do not need to do anything on the actual closing day - you will be notified once the title has been transferred. CONGRATS, you just became a home owner. Your possession date is usually 1-2 days after the completion date. All you have left to do now is obtain the keys and move in.

8. Move In!

You just got to the most exciting part, it is moving day! At your possession, be sure to take a look around and to make sure that the seller has fulfilled all of the contract obligations. You want to ensure that the home is clean and if you agreed to any repairs, that it was completed properly.

I hope this home buyers guide helped you understand the process a bit better. If you are looking for a real estate agent who can help you with your first or next purchase, I would love to start a conversation with you. Contact me today!