Home buying process, down payment to closing

Figure out your finances, you need to get mortgage for your property. However, you will need some sort of down payment. The first question comes to mind is how much down payment? Ideally a down payment on a mortgage should be 20% of the home price to avoid additional fees. Still your down payment can be 5% or 10% but there will be additional cost such as mortgage insurance you need to consider, and we will talk about it later to answer all your questions.

It is smart to check your credit score couple of months in advance to make sure you can get a mortgage and discuss with your mortgage adviser. your credit score is the three-digital number and it shows the summary of your credit report.

Detailed document shows how well you have paid off past debts and your owing balance as well. Based on your credit report and summary a lender you can find a lender which can be banks or any other financial institution who will help to give you mortgage. Keep it in your mind that the interest rate is not fix, and you may need to discuss with few advisers before making any decision.

Each mortgage company will analyze your financial background and by using your financial information a lender determines whether to loan you money, and what size monthly payment you can realistically afford. This will help you target homes in your price range.

Your realtor will play a huge role while you are looking for your desire property. The best realtor should be a combination of a personal adviser, negotiator and consultant.

For buyers there is no fee and as a buyer you will not pay your realtor, however the seller will pay the commission. Your realtor will show you homes that match your needs and guide you through the home buying process. By the time you like a property she/he will negotiate for the best possible price and submit your closing documents.

Based on your budget you can easily look at realtor.ca, find your area and ask your realtor to make an appointment for showing. Your realtor has his/her resources such as MLS and you have a better opportunity to find your best match and make an offer.

Based on your budget you can easily look at realtor.ca, find your area and ask your realtor to make an appointment for showing. Your realtor has his/her resources such as MLS and you have a better opportunity to find your best match and make an offer.

Once you find your dream home, your real estate agent presents the offer to the seller. Your offer includes conditions, price, deposit and closing date. The seller has an option to accept, reject or even counters the offer.

It is a wise idea for resale homes to do the inspection. It is optional and your agent can add home inspection as a condition to your offer and your purchase you will be base on the outcome of the inspection report. If the inspection report shows major concerns, your real estate agent can negotiate those repairs with the seller before the closing.

Hire a lawyer who specializes in real estate. Your lawyer will look over the offer and conduct a title search, check for any outstanding taxes and liens on property.

Closing is the day you officially get the key from your lawyer. Your lawyer will pay all the varies parties involved which include your down payment for your loan and the closing cost. Your closing costs can be anywhere from 2% to 7%. (we will discuss the closing cost breakdown later)