Successfully navigating the process of purchasing a new home requires careful consideration and strategic planning. Seeking guidance from professionals in the real estate sector, including brokers, bankers, inspectors, and notaries, is crucial to ensure a smooth transaction.
In 2021, Statistics Canada projected that 59.9% of households in Quebec would be homeowners, though this percentage is expected to decline slightly. Nevertheless, with a well-organized strategy, you can still increase your chances of achieving homeownership!
Now, let's take a closer look at the 10 key steps of the buying process.
Step 1: Defining your borrowing capacity
Prior to embarking on your property search, it's essential to determine your borrowing capacity by obtaining a mortgage pre-approval. Many banks provide resources to help clients assess their borrowing potential.
This initial step provides insight into how much you can comfortably borrow, establishing a clear budget for your home search.
Many banks offer online tools to help customers assess their borrowing capacity, allowing them to gauge how much they can borrow based on their income.
In fact, XpertSource.com provides an online calculator specifically designed to estimate your borrowing capacity, so you don’t need to search any further!
Step 2: Exploring your preferences
During this contemplative stage, it’s essential to consider the type of property that aligns with your preference and lifestyle.
- Condo?
- Single-family home?
- Duplex?
- Semi-detached house?
- Townhouse?
Your decision should be driven by personal, professional, and family needs.
Additionally, the location you choose for your new home also carries significant weight. Factors such as neighbourhood tranquility, proximity to schools, and accessibility to your workplace should heavily influence your decision-making process.
Once you've identified these essential factors, conducting preliminary research online can provide valuable insight into the market. Browsing real estate websites will help you become familiar with property prices in your desired neighbourhoods.
If possible, visiting these areas in person can provide invaluable insights to ensure they align with your criteria. While this initial research phase may require some time and effort, carefully considering all aspects ensures you make informed choices that align with your long-term goals and preferences.
Step 3: Finding a real estate broker
Partnering up with a real estate broker is essential as they guide you through every step of the purchasing process. From pinpointing the perfect property to navigating negotiation, all the way to finalizing the sale at the notary’s office, the broker is your trusted ally. Real estate brokers are committed to assisting you in finding the house of your dreams.
Real estate brokers are essential for their expertise and guidance, providing invaluable advice and conducting thorough research on your behalf. While recommendations from friends or family can be helpful, it's essential to choose a broker tailored to your individual needs and preferences.
Additionally, a crucial aspect to consider when selecting a real estate broker is their familiarity with the neighbourhood where you plan to purchase. It's essential that the broker you choose has a proven track record of successful transactions in that specific area. Therefore, conducting thorough research to find a broker who meets all your requirements is necessary.
Quebec's real estate market offers a variety of properties to suit diverse preferences and budgets. Collaborating with a real estate broker significantly simplifies the search process. With their expertise you can expect to find a property that aligns with your needs within a matter of weeks.
Did you know?
As a buyer, a real estate broker won't cost you anything. It’s a common misconception that buyers must pay the commission for their real estate broker. In fact, it’s the seller who covers the broker’s commission upon the successful completion of the sale.
Step 4: Finding a mortgage broker
After securing a real estate broker to assist with your property purchase, the next step is to find a financial institution that can offer you a mortgage loan. This is where a mortgage broker can be invaluable. The best part? You don’t need to pay for a mortgage broker’s services, as they are typically compensated through commissions from banks.
Although it might be tempting to take a loan from your current bank, it’s beneficial to explore various mortgage options. Shopping around allows you to discover the most favourable terms and conditions tailored to your financial needs.
In Quebec, the mortgage system can be quite complex due to the variety of mortgage types available. A mortgage broker will serve as an intermediary with lenders, whether they are financial institutions or private lenders, to secure suitable financing for your real estate project.
One of the key advantages of working with a mortgage broker is their negotiation expertise. They can help you find the most advantageous interest rate based on your specific financial situation.
Step 5: Finding a mortgage
This is a pivotal step in the buying process since you will likely be in debt for the next 15 or 20 years! If your mortgage broker has offered sound advice, you can move forward with confidence, knowing that your loan represents a solid investment in your future.
However, do not hesitate to inquire about the different aspects of the mortgage to make sure you understand your contract fully. Here are some topics that might pique your interest:
Step 6: Consultating with a notary
Notaries wield considerable authority as public officers recognized by the state. Their drafted documents hold authenticity and are acknowledged in court. With an in-depth understanding of real estate law, notaries or adept experts.
Therefore, it’s advisable to engage their services for drafting and reviewing all pertinent documents, as well as seeking their expert counsel for informed decision-making throughout the property acquisition process.
With their expertise, a notary can help you steer clear of potential surprises that often accompany home purchases, such as being left with the contractor’s debt or assuming responsibility for the seller’s mortgage debt.
The notary's role involves safeguarding the investment funds in the real estate transaction and ensuring the validity of all documents signed by the parties involved.
Step 7: Submitting a purchase offer
Once you've found the perfect home, it’s time to proceed by submitting a purchase offer to the seller, guided by the advice of your real estate broker. The offer to purchase included the proposed price for the purchase of the property, along with all the conditions required to finalize the sale, such as securing a mortgage loan and conducting pre-purchase inspections, among others.
From there on, the seller has the option to accept your proposal, reject it, or make a counteroffer. This negotiation process can be complicated, making it advantageous to have the professional guidance of your real estate broker.
Step 8: Conducting a pre-purchase inspection
At this stage, obtaining a professional assessment is crucial to ascertain whether the desired property meets your expectations; you will need a building inspector.
The building inspector specializes in building inspection, meticulously examining the visible and easily accessible components of the house to uncover any issues and concealed defects. This inspection may not only enable you to renegotiate the terms of the purchase agreement if the property requires repairs but may also provide grounds for cancelling the transaction.
The cost of hiring a building inspector can vary depending on the property you intend to purchase. Surprisingly, this expense is relatively modest considering the peace of mind it affords throughout the project.
Step 9: Signing the promise to purchase
Once the seller has accepted your offer to purchase, it transitions into a promise to purchase. As a result, the conditions outlined in the document become non-negotiable.
However, signing a promise to purchase does not signify that you are now the owner. The final step, the signing of the deed of sale, is necessary to complete the transfer of ownership.
Step 10: Signing the deed of sale
After weeks or months of preparation, you’ve reached the end of your journey. To officially become a homeowner, you’ll need to sign the deed of sale. Typically, this signing takes place at the notary’s office, with both parties present. This moment marks the transfer of ownership.
Congratulations! You’re now a proud homeowner!
Are you interested in embarking on the 10-step buying journey?
XpertSource.com can help you in your efforts to find real estate professionals. By telling us about your project, we will refer you to top-rated experts, free of charge! Simply fill out the form (it only takes 2 minutes) and you will be put in contact with the right experts.
