First Time Home Buyers—What You Need to Know

Buying your first home may seem like a daunting process, but it doesn’t have to be! With careful preparation and the right mortgage broker, it’s easy to find the home of your dreams at a price you can afford. Below is a step-by-step guide to buying your first home to help your through what may seem like a difficult process.

Step One: Meet Your Broker

Before you start shopping for your house, arrange to meet with your Mortgage Broker to see what you qualify for in terms of a mortgage and to get Pre-Qualified/Pre-Approved. Unlike the bank’s short process, Brokers have a deeper process, including a credit check, in order to give you an idea of how much you can spend on a home purchase or offer suggestions on areas to improve in order to get you into your new home.

Step Two: Meet Your Realtor

Once you have an idea of what kind of mortgage you’re eligible for, it’s time to meet with your Realtor. Realtors work to find you the right home, help with the negotiations, making sure you’re not going to run into any legal issues, and that there are no surprises come possession day. Realtors have access to information you can’t find online and their services are at no cost to the buyer, so they’re an important resource for any first time home buyer.

Step Three: Go Shopping!

Looking for a home is generally a fun experience. Sometimes, you don’t know what you like or dislike until you’ve seen a few properties. Be sure to take notes to help you in your decision making process. Before going to see a property, prepare a detailed list of questions to ask relay to your Realtor so you can be fully informed about each property. Going to open houses can be exciting but also exhausting—make sure each property you visit meets your requirements on paper before committing to a full tour.

Step Four: Sign a Purchase Agreement

When you have found the right house, you and your Realtor will work together to negotiate the price, terms and conditions. Financing is always a condition to the purchase of the home, as well as home inspection and more. Your Realtor should discuss the conditions of the contract prior to signing.

Step Five: Get a Mortgage Approval

Let your Mortgage Broker know as soon as you’ve signed a purchase agreement. Your Broker will submit your application along with supporting documents. Once approved, the lender will send a mortgage commitment letter for you to sign along with terms and conditions.

Step Six: Meet with Your Lawyer

It is important for you to understand the ins and outs of your contract. It is highly recommended that you choose your own lawyer to help with the legal process of your home purchase.

Step Seven: Close The Deal

You’ll need to meet with your lawyer once more before closing to sign the final mortgage commitment and transfer your deposit and any outstanding fees in trust to your lawyer. Your lawyer will go over the contract terms and conditions and handle the closing process. On closing day your lawyer will complete the transaction with the lender’s lawyer and complete the closing process.

Step Eight: Celebrate!

Congratulations! Once the final legal paperwork is approved you can take possession of your new home.

Purchasing you first home may feel intimidating and overwhelming, but navigating your way through the real estate market is a piece of cake with the right preparation and professional support. For all your mortgage broker needs, trust Rose Blankenagel. Rose has many years of experience helping first time buyers secure their ideal homes throughout Alberta and British Colombia. She can help you locate and negotiate the best rates possible, so you can purchase the home you want without going over budget. For expert mortgage services and advice you can trust, contact Rose Blankenagel today at Mortgage West - The Mortgage Centre.