YOUR GUIDE TO BUYING
BUYING IN 8 EASY STEPS
Before you start looking for a home, you need to know how much you can spend. Getting your mortgage preapproval is the very first step in the process - and it’s never too early to start! It will strengthen your position when you’re ready to submit an offer and help you focus on opportunities in your price range. Consult with your bank and/or a mortgage specialist who will look at your current financial situation and preapprove you for a mortgage within your budget. This pre-approval will typically be valid for 120 days.
TIPS FOR PRE-APPROVAL
1. BE PREPARED WITH YOUR DOCUMENTS
Tax records, income statements and IDs are just some of the items you will be required to provide
2. CONSIDER ALL SOURCES OF INCOME
Income from rent, monetary gifts from family, and more are all something to consider
3. GET YOUR PRE-APPROVAL IN WRITING
4. ASK US FOR RECOMMENDATIONS
If you don’t have someone to help, we would be happy to introduce you to one of our preferred partners.
COSTS TO BE AWARE OF
It’s imperative to know and understand the costs to be aware of when buying a home as they can add up quickly (on top of your purchase price). Don’t worry! To ensure you are informed and prepared, we’ve broken down the common costs in detail for you here:
DEPOSIT & DOWN PAYMENT
Deposits in the Greater Toronto Area are typically 5% of the purchase price. This amount needs to be accessible in a bank account and ready to be paid within 24 hours of your offer acceptance. Deposits form part of your total down payment and are contributed towards your balance owing on the purchase price on closing.
DEPOSIT & DOWN PAYMENT
Closing costs are typically 1-2% of your final purchase price. These are additional funds that you will need to have accessible for your closing (they are not included in your mortgage):
• Legal (lawyer) fees
• Land transfer tax
- Home Inspections
- Appraisal fees
- Mortgage Insurance
CREATE YOUR WISHLIST
When creating your wishlist, there are a lot of factors to consider. For example, these are the main topics our clients typically consider:
House, Condo or Investment
THE SEARCH PROCESS
at Lion Crest Real Estate we leverage a combination of systems using Relator.ca, Matrix and KV Core. We will work with you to setup a custom search based on your ideal criteria, budget, etc. to help you find properties that are suited for you! You can easily communicate with your Lion Crest Real Estate parnter to comment on the listings or request showings. It’s user-friendly and instant. You can like, comment, save and share your favourite listings.
We know how busy life can get and your time is valuable! We’ll help streamline the best 5 to 8 properties to preview and ensure they meet your criteria so you aren’t wasting your time. You can preview these homes in person or virtually.
We’ll help you keep track of which homes you view and then discuss honest feedback on each. You’ll have a chance to rate each home on a scale from 1 to 10. Typically your ratings will have these results:
8-10 = Submitting an Offer | 7 = Possible offer | 1-6= No offer
MAKING AN OFFER
When you find the right place, the next step is to submit an offer. In today’s market, there are a couple of different strategies Sellers will have to accept an offer. A lot of properties are sold in multiple offers (otherwise known as bidding wars; when there is more than one offer on the same property) or through pre-emptive offers (where an offer is submitted in advance of a specified offer date). A pre-emptive offer is also known as a “bully offer”.
Once your offer has been successfully negotiated and accepted by all parties, you now have either a conditional or firm sale. Once firm (conditions have been fulfilled according to the agreement), your sale remains pending until the Closing/Completion Date. You will require a lawyer to facilitate the closing of your property. We recommend that you contact your lawyer a minimum of 1-2 weeks before your closing date to ensure that everything is in order and to confirm a date and time to sign all paperwork (this can be done virtually), where and when to pick up keys for your new home etc.*
*If you do not have a lawyer, we will be pleased to recommend one of our preferred partners to you.
On closing day, your lawyer will advise you once the transaction has been successfully completed (i.e. funds have been transferred) which would mean that the title will be officially transferred and you’ll be given access to your new home! The Sellers typically have until 6:00pm to provide vacant possession, unless otherwise negotiated in your contract.
LION CREST REAL ESTATE
Lion Crest Real Estate represents so much more than just buying or selling a house. we are a team of Realtors based in Hamilton, Ontario who are client driven with a passion for all things real estate. We don’t just talk the talk, we walk the walk.
We are dedicated to assisting you in one of the biggest financial decisions of your life. Buying or selling your home shouldn’t be a stressful experience and we are here to tell you that it doesn’t have to be. Real estate should be comfortable.