Home Purchase Buyers Guide
Step 1: Choosing the Right REALTOR®
It’s important that you understand whose interests REALTORS® are legally bound to serve in real estate transactions.
The Listing Agent:
The listing agent is under contract with the seller to market and sell their property for the best possible price. For the buyer, the listing agent can:
- Arrange a showing of the property.
- Assist with financing the property.
- Provide details about the property.
- Explain all the forms and agreements related to buying the property.
Your personal REALTOR®:
When you engage the services of your own personal agent, you get all the same services listed above plus your personal REALTOR® provides:
- Confident assistance that addresses your needs first.
- Honest, loyal, and diligent care free from any conflicts of interest.
- Access to all listings including MLS, bank owned properties, distress, and estate sales, even homes that were previously on the market where the seller might still be interested in selling.
- Expert advice on useful clauses such as home inspections and financing to protect you fully.
- Expert negotiations of the offer to purchase to achieve the best possible price and terms.
- Expert advice on the market value, inclusions, location, as well as help you decide when you should walk away.
- Discovery and disclosure of all information about the property including liens, warranties, disclosures, sellers purchase price, and market and planning activity in the area.
- As your personal REALTOR®, our job is to ensure you are an educated buyer in all aspects of your home buying process.
Step 2: Deciding Where and What to Buy
The first step is deciding where you want to live, what type of home you are looking for and what features are “must haves” or “nice to have” in a home. Invariably, there will be tradeoffs but rest assured I am here to help sort through the options to find you the best house, at the best price and with as many of your wants and needs as possible.
A few key questions to help you get started:
What type of home are you looking for: single family, semi-detached, townhome, or apartment condominium?
- What style of home: bungalow, split level, two-story, duplex?
- What about the age of the home?
- How many bedrooms do you need?
- What are you looking for in a kitchen, family room? Do you want a separate dining room? What is your preferred layout?
- What are your priority features: appliances, en-suite, fireplace?
- What other types of rooms do you need? Main floor laundry, a home office?
- What about storage space?
Do you need a garage or parking for your R.V?
- Is energy efficient important? New windows, new furnace?
How is your daily commute? How easy is it to get to the places you need to go?
- Do you need to be close to transit, shopping, schools, hospitals?
Any important location factors? Backing onto a park, road traffic?
- What size yard/lot are you looking for?
- Is it important what direction the house faces?
- Who are you sharing the home with and what are their needs? Pets?
Do you want to invest beyond the purchase price (financial or sweat equity) if you can’t get all the features you want?
How long do you plan to live there? That can impact the type of home, the location, and how much you will spend.
Step 3: Getting Pre-approved for a Mortgage
The mortgage industry is a highly competitive field and it’s important to understand that interest rates can change at any time. Partnering with a mortgage broker or financial institution to help you find the right mortgage product at the best rate is key to your home buying process.
Here are 5 easy steps to get you pre-approved for a mortgage:
- Talk with a mortgage specialist. There are hundreds of options to choose from when it comes to lenders. Independent mortgage brokers tend to offer the most options because they don’t just work with one lender. However, if you have a good relationship with your bank or financial institute, contact them as your first step toward finding the right mortgage for you. Always be sure to compare rates.
- Complete and submit your application with the mortgage broker. They will collect your financial and personal information to find out how much mortgage you can carry.
- Gather all the necessary documents. The mortgage broker will give you a list of documents that the lender will need to finalize the mortgage.
- Verification of your details. They will do their checks and balances to make sure that you are not getting in over your head.
- Obtain a copy of your pre-approval. This is a powerful negotiating tool. The seller of your dream will feel more confident that you are the right person.
Having pre-approval documentation can offer you several benefits:
- Save you time by only looking at properties that you can afford.
- Save you money. Rate guarantees and mortgage terms can save you money for years to come.
- Less stress throughout the process. You will know that you are ready and capable of buying a home.
- Get a better deal on the home that you want. Sellers like to know that buyers already have financing in place.
This mortgage calculator can be used to figure out monthly payments of a home mortgage loan, based on the home's sale price, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate.
Mortgage values are calculated by Real Estate Webmasters and are for illustration purposes only, accuracy is not guaranteed.
Step 4: Becoming an Educated Buyer
Our service will empower you with key market information and every possible advantage to ensure you become an educated buyer. Educated buyers are able to make more informed decisions creating a stress-free and enjoyable home buying process.
Here’s what you can expect from us:
- Access to property listings from a variety of advanced property search programs.
- Access to a database of expired listings that may reconsider selling.
- Access to For Sale by Owner homes that match your criteria.
- Up-to-the-minute access to the best deals on the market including brand new MLS listings, newly priced reduced properties, new home options, private sales and details under contracts that have fallen through.
- The most current real estate market information that may impact your buying decision including mortgage changes, statistical sales data on median house prices, sales and months of inventory, local area market changes, trends and much more.
The Education Process
The Paul Lamba Buyer Process keeps you informed every step of the way:
- After your initial fact gathering meeting. We enter a detailed summary of your wants and needs in a home into our database and a variety of property search programs.
- We won’t bombard your email with information that is not relevant to you. We will provide updating emails on all the homes that are new to the market or had a recent price change that matches your criteria.
- As market area specialists, we ensure you are kept informed of all relevant industry changes that may impact your buying decision including price trends and mortgage rates.
- You get all the information about every property- the same information we have access to.
- When you find a home that piques your interest, simply contact us and we will arrange a convenient time to view.
Remember, when selecting what homes to view:
- Choose different styles of homes that meet your needs.
- Drive by the home and area for your first impression.
- Select a maximum of 6 homes to visit in one day (4 to 5 is best).
- Schedule time after the showings to sit down and discuss the home’s merits.
Step 5: Making an Educated Offer
The ongoing communications and education you will receive from us will empower you to get the best possible deal on the home that you desire.
You’ve found the one. Fantastic! Here’s what happens next:
- We will prepare an offer that protects, follows your instructions and matches your schedule and needs.
- We will explain the details of the offer, the terms and suggest options for specialty clauses ensuring you know exactly what you are agreeing to.
- We will present and negotiate the offer on your behalf to get you the home that you want at the price and terms you want.
What happens after this:
The seller accepts your offer- congratulations!
- The seller rejects your offer- not common but it can happen and we would endeavor and found out why.
- The seller may counter offer, changing the terms of the offer and present the offer back to you.
- Our negotiations continue to reach agreeable terms between the seller and yourself, or until we know an agreement cannot be reached and it’s time to walk away.
Step 6: Conditions, Home Inspections, Waivers and Lawyers
The offer has been accepted. Now we need to satisfy the conditions.
This usually involves performing a home inspection, getting the rest of your personal information and the property information to your mortgage broker or banker, and arranging for the other information that might be necessary, like surveys, water tests, and condominium documents. We will help you make the necessary arrangements to ensure that the entire process runs smoothly before the deadline.
Next, you will need to add some people to your team.
Finding a Home Inspector:
Home inspections allow you to scrutinize the details of the home and save you some unpleasant surprises. We would be happy to recommend a reputable home inspector, however, when making your decision…
- Ensure that the home inspector is a qualified professional. Being a member of an association can reassure you are getting an experienced knowledgeable professional.
- Ensure the home inspector checks for visible issues with plumbing, electrical systems, the roof, insulation, walls, ceilings, flooring and windows, and the condition of the foundation. They can also check that included chattels, like furnaces, air conditioners, and appliances are in working order.
- Ensure your home inspector gives you an up close and personal look at your new home. It takes about 2 hours to go through all the systems, and if they are any problems you will see them with your own eyes. They will also give you maintenance tips and easy fix-ups. If necessary.
- Ensure that in the end, you receive a detailed report that summarizes the conditions of your new home.
Choosing a Lawyer:
Lawyers can be an invaluable member of your team whose job is to ensure that you get what you are paying for and in accordance with the terms of your agreement of purchase. Your lawyer will ensure...
- There is nothing on the title that isn’t supposed to be there.
- The property taxes, utilities, and condo fees, if applicable, are up to date.
- You have all the information that you need about your new home.
- You know exactly how much money you will need in order to complete the transaction.
- They also ensure that the seller gets paid the purchase price.
When all of the conditions in the Agreement of Purchase and Sale have been met and the offer becomes firm, your lawyer will do the work required for the transaction to close as set out in the Agreement.
The lawyer work will include:
TITLE AND OFF TITLE SEARCHES
To confirm the seller is the owner of the property, and to determine that the property is not subject to any encumbrances, easements, liens, mortgages etc., that were not disclosed in the Agreement.
CALCULATE FUNDS REQUIRED FOR CLOSING
The Seller’s lawyer will provide a Statement of Adjustments, which will show the funds required to close. Your lawyer will add his fees, land transfer tax, title insurance and the mortgage monies being received.
MEETING WITH YOU
Prior to closing your lawyer will meet with you to sign the documents required, and to obtain the funds for closing.
Funds are couriered and delivered between Lawyers offices.
For more information Call me today at 1 (780) 951-2378, it would be my pleasure to have a free consultation with you and your family.