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As your personal guide and trustworthy Broker, the agents at Cake Realty strive to give you the best of the best. In the years that we have spent in the industry, homebuyers have often asked us, “What do I need to do when I buy a house?”. As a result, we have composed a step-by-step guide that organizes the buying process to make buying a house simple and fun!
Step 1: Decide to Buy
Before you even go looking for a home, you have to understand your needs. Think about the type of place you’re looking for. Are you looking for a lot of bedrooms and washrooms for your family? Do you want a pool in the backyard? Do you want to live close to a school or a mall? These are just some of the things you have to consider before start looking for a new home.
You also have to familiarize yourself with different types of ownership as well to help narrow down the perfect home. Freehold is when you own the structures and the land, a condo is when own your suite and have share ownership of the rest, a co-op is similar to a condo but you own partial a share of the whole property and you do not have exclusive ownership of the suite you occupy.
Once you have narrowed down some qualities, its time to go looking for a home!
Step 2: Hire CAKE REALTY
There are thousands of real estate agents so the question is, how do you chose one that’s right for you?
At Cake Realty Brokerage, we only hire well trained professionals. Starting with the right Brokerage is the first step. A great agent will act as your representative and will look out for your best interests. A Cake Realty Agent is trainned professional you can trust and someone who strives understands what you want and intuitively respect you needs.
Step 3: Let a CAKE REALTY AGENT help
Finding that dream home can be as easy as CAKE! But before you go shopping, you have to make sure you are also financially ready. Plan your budget using the CAKE REALTY very handy affordability calculator by clicking here.
One thing to keep in mind is the total of your closing costs. Closing costs include:
The down payment: This is a percentage of the total costs of a home that you’ll need to pay. The more money you put down, the more you’ll save on monthly payments and borrowing costs.
CMHC Insurance: When your downpayment is less than 20 % of the home purchase price, you will likely be required to pay an insurance premium to CMHC. This insurance premium is usually not paid upfront but added to the total amount of the mortgage. To calculate how much the CMHC premium would be for your purchase, click here.
Land Transfer Tax: In Ontario, when you buy a house you have to pay taxes on the sale to the provincial government. This tax is called a land transfer tax and must be paid in order to obtain title to the property. Some municipalities, like the city of Toronto, also charge a municipal Land Transfer Tax. These taxes are costs that need to be considered when buying a house. You can find a Land Transfer Tax Calculator here.
Lawyer's fees: These fees include, not only the lawyer's time, but the costs associated with searching the title, and mitigating any unforeseen problems that could come up on closing. Generally the fees range from $1,200 - $2,500. Make sure to get a quote from your lawyer ahead of time.
Mortgage Costs: Many buyers are unaware of the costs charged to get and to later keep a mortgage. As a buyer, determining the mortgage costs associated with a purchase must be done prior to signing a deal. These costs vary depending upon whether or not you are a first time buyer, your financial position, your credit rating, and also have to do with the type of property you are planning on buying.
Keeping these things in mind, you are free to go window shopping! Contact CAKE and we will help you focus your search according to your criteria. CAKE can also let you know about OPEN HOUSES, new listings that are not on the Internet, and advise on the current market prices. Looking for houses can be really fun and exciting! You can browse listings using the smart listings search on our website, here.
Step 4: Make an Offer Now
Now that you’ve found the house that you are set on, it’s time to make an offer. Not all offers are the same and here’s where a Cake Realty Agent comes in. We will help you decide on the terms and conditions that will best serve your interests and draft an offer that will protect you. At CAKE, we only hire well informed professionals who can walk you through the details of the contract and who are happy to answer any and all of your questions. We will help you decide on the right buying strategy based upon the current market trend, which will include the offering price, the conditions, the inclusion or exclusion of chattels and the closing date. We are also here ton advise on any risks associated with the purchase. We negotiate on your behalf and have your back throughout the whole process.
Step 5: Close the Sale
CAKE'S CLOSING LIST:
TOUCH BASE WITH THE LAWYER: A couple weeks before closing, talk to your lawyer and follow up on the title search. There is a deadline in the contract but sometimes it gets overlooked. A call to the lawyer can help avoid a lot of headaches on closing. Also, have the lawyer give you a summary of how much the closing costs will be so that you are not surprised when you go to sign the papers a few days before closing.
PAY YOUR LAND TRANSFER TAX ONE WEEK IN ADVANCE: If you are an investor and are not planning on keeping the property for a long time, you may want to consider paying your land transfer tax in advance. When you pay in advance, the price of a non MLS sale is kept confidential and is not disclosed to the public.
BOOK A VISIT TO THE PROPERTY: a few days before closing, call your Cake Agent to get in and have a further look at the property. If you bought in winter and are closing in the spring, you may want to double check the yard. Also, now is the time to re inspect the mechanical equipment and chattels, and to make sure that the property is in the same condition as when you first fell in love with it.
GET YOUR MONEY IN PLACE: a few weeks before closing, make sure that any money you need to close is accessible. Banks vary in how long it will take you to withdraw funds. Take your money out to make sure you will have it for closing.
KEEP YOUR CREDIT IN GOOD STANDING: You may be excited and want to go shopping for all the things for your new house, but now is not the time! If you are a first time buyer, you may just qualify for your mortgage. In order for the lender to process the mortgage on closing and advance the funds, your qualifying ratios need to be the same as when you first got the approval.
Congrats, welcome to your new home! You’re all ready to move in!