This guide outlines how career women who are first-timers should approach buying property. If you’re a first-time property buyer, there’s a lot you need to learn.
Whether you’re looking into buying property as an investment and opt for residential property management in toronto gta, or you plan to move in yourself, this will probably be one of the biggest decisions you’ll ever make. Because buying property is a considerable investment, knowing about the buying process beforehand will help you make the most informed decisions.
Steps for buying property
Read on to get taken through the buying process step by step.
Step 1: Getting Pre-Approved for a Mortgage
Getting pre-approved for a mortgage is a vital first step when buying property. By applying and qualifying for a mortgage, you’ll have a much better idea of how much you can spend on a home. Your lender will determine how much you qualify for by looking at your debt, income, credit history, and the amount of your down payment. When you secure pre-approval from your lender, it will be confirmed in writing and include a guaranteed interest rate.
Getting pre-approval for a mortgage will help you determine the price ranges to look for when house hunting and eliminate the uncertainty when you find your dream home. Having a pre-approved mortgage will also give you more buying power when putting in an offer.
Step 2: Creating a Wish List
Knowing what you prioritize in buying property is essential. Before you start house hunting, make a list of all your must-have features, nice-to-haves, and absolute deal breakers. Start by listing how many bedrooms and bathrooms you need, then decide on a location. Think about whether you want a garden, what finishes and appliances you want in your kitchen, etc.
Ste 3: House Hunting
Once you’ve narrowed down your search and been pre-approved for a mortgage, it’s time to go house hunting. Finding a realtor who specializes in the areas you’re interested in will make finding your dream property much easier. A realtor can also send you listings of all the properties available that meet your specifications for buying property.
Usually, house hunting involves screening listings, taking virtual tours online, and physically traveling to see the homes in person. Traveling to see potential homes is an excellent opportunity to get to know the areas, so take notes about the neighborhood.
Step 4: Making an Offer
Once you’ve found your dream property, it’s time to put in an offer. When putting in an offer in many places, it must be in writing. Your offer will form the Agreement of Purchase and Sale – a legally binding document. The Agreement of Purchase and Sale document will also include the amount of your deposit, the date you take occupation, and any inclusions and conditions.
Your realtor will submit your offer, and the seller can accept it, reject it, or sign a counter offer. Although the process can be nerve-wracking, and you may have to make compromises, an experienced agent will work with you and explain the process.
Step 5: Closing the Deal
If the seller accepts your offer, you must make the deposit (usually 5% of the purchase price) within 24 hours. Closing is the last step in the home buying process, and the ownership and possession of the property will be transferred to you once all the financial and legal obligations have been met. The closing process will involve you, the seller, your attorney, and your lender. Once you’ve closed the deal, you are officially a property owner. Congratulations!
