BUYING A HOME 101

Purchasing a home is a big milestone of your life and can be challenging in the process.

Here are some tips to make sure you're ready!

1. Save for minimum down payment and make a timeline

A down payment is a sum of money a buyer pays. It represents a portion of the total purchase price, and this amount differs based on the mortgage you will receive, and the price of the home you plan on buying. Saving up a portion of your income for a down payment will help greatly when you are ready to purchase a home. Having an idea of when you want to buy a home will help in your plans to save for a down payment.

2. Talk to your bank and get your mortgage pre-approval

Mortgage pre-approval is a statement provided by the lender on how much they are willing to lend you. This will give you a better understanding of your budget and the type of home you can buy. By getting a mortgage pre-approved it shows that you are a serious buyer and can help when submitting an offer on a property. The amount of mortgage you qualify for will mainly depend on your income, credit score, income-to-debt ratio and down payment.

3. Find a realtor and go house hunting!

Once you have a down payment and mortgage pre-approval you are ready to find a realtor! A realtor will guide you through the end-to-end process and represent your best interest when it comes to making an offer. They will be able to use their mass market database to help you select the home of your interest.

4. Make an offer

After finding the dream home it's time to make an offer. Your realtor will guide you in the process and help you structure your offer. In addition, by having a mortgage pre-approval it will help make the offer more appealing to the sellers. Your purchase agreement will describe the terms and condition of your offer which include price, closing date, lender information and other items.

5. Get a home inspection

It is important to get a home inspection, as it may provide with information about the property and most importantly protect you in your purchase. An inspection can highlight if there are any structural issues or repairs needed to be done on the property. If such are found, it can be used to negotiate the purchase or to pull out of the contract altogether.

6. Hire a real estate lawyer to close the deal

Once everything satisfies your needs, you can hire a real estate lawyer to finalize the deal. The lawyer will make sure the paperwork is correct, and protect your interests in the process.