By: Jayson Schwarz LLM
Buying a home is the most important purchase most people make in their lives. Research the area you want to live; research what is around, check what was there before and what is proposed in the future. Make sure you have your mortgage pre-approval, home inspector and your lawyer ready to go. Research and knowledge give you the ability to make an educated choice that will ensure that your new home is the dream home you always wanted.
The first step is to determine the price you can afford to pay. This means getting mortgage pre-approval so you know how much money you have between your cash on hand and the mortgage amount. You will also know the payments and what you can carry. In today’s mortgage market some lenders are offering to hold mortgage rates for up to 120 days while the purchaser shops for a home and by pre-approving with a good lender or mortgage consultant, you also get to learn about many of the pitfalls of mortgage financing before you have to experience it.
Then find a good lawyer and make sure you establish all of the costs ahead of time. Please find a REAL ESTATE lawyer not some lawyer that does 3 deals a year for anyone who asks him.
The Agreement of Purchase and Sale (APS) is the most important document in the process as it sets out the blue print for the transaction. It is here that all terms of your deal are laid out. Remember what you have been told does not matter; if it is not in writing it is not binding. The agent will prepare the APS and you should take a look on line at www.schwarzlaw.ca at the article on the resale APS. If the APS is conditional this would be an excellent time to have your lawyer peruse it. One the deal is accepted get it to your lawyer ASAP.
Prior to the closing make sure you contact all of the utilities like hydro, gas, telephone, cable, etc. to let them know you are taking over and to arrange for all services to be on for you. You may have to provide deposits so ensure this is done. Another critical matter is your house insurance. Please do not fail to arrange for normal house insurance which will include fire, liability etc. and you need to tell your agent the name of the mortgage company and the amount of your mortgage, because your lawyer will need a binder for the closing.
Your lawyer will attend to all of the matters of the conveyancing and then once he receives the adjustments from the other side will contact you to tell you the exact amount of funds you need to bring in. All funds will have to be certified. You will then attend at your lawyer’s office, usually the day before the closing, sign all of the documents, turn over the money and then you leave and wait for the call that the house has closed and where you need to go to pick up the keys.
Good luck and happy home hunting!!!!!!!!!!!