The home buying process is different in every country. Some regions, gaining access to real estate is rather tricky, and other areas it can straightforward and trouble-free. Newcomers to Canada may find that both of these hold true, but having the right information and tools at their disposal can greatly facilitate the home buying process. Here is a quick summary of what potential residents should know:
1. GET PRE-APPROVED: After working out your budget, getting a mortgage preapproval will streamline the whole process. There are many international entities all over the country to assist with this step. Be aware that the maximum monthly loan amount will be approximately 40% of your monthly income.
2. FIND A GOOD REALTOR: Getting along with your realtor is very important. Find one you are comfortable with, and one with whom you can voice your requests and needs.
3. DO YOUR RESEARCH: Although exploring a new area can be difficult, especially if you are not acclimated to the region or country, it is important that you spend as much time as possible delving into and studying your new community. Start viewing homes that match your requirements with your realtor and narrowing down the place(s) you like.
4. MAKE A PURCHASE OFFER: Once you have found the right home, you may make a conditional offer to purchase. This means that you agree to purchase the home from the seller provided certain conditions met – financing, final inspections, etc. If the offer is accepted, both parties must sign and deadlines for the corresponding conditions will be solidified at this time. This is also when you would put down the deposit amount.
5. CLOSING DAY: After the conditions (outlined above) are met, the legal paperwork is then carried out. Shortly after, the buyer and seller will agree on a date to transfer possession of the house, also known as a “closing.” The day of closing is when your mortgage lender forwards you your loan amount and when the official exchange of keys and money takes place.