Like anything, when something is new or unfamiliar it may seem daunting, or a little overwhelming. Buying your first home may fall under that category. Although buying a home is not a simple task, it does not have to be difficult either. It is essential to your success to work with skilled, knowledgeable realtors (Team Bishop) who can help you navigate through the home buying process. As a first time home buyer you will most likely have more questions, and concerns than people who have purchased real estate previously. Which is perfectly okay! We are here to help and answer any questions you may have. Let's take you through the process.
Step 1: Pre-approval
What kind of homes are in my price range? what monthly mortgage payments can I afford and am comfortable paying? These are sorts of initial questions we encounter from our first time home buyers. As a first course of action we recommend making an appointment with a bank, or seeing a mobile mortgage specialist as soon as possible. They will be able to determine what you can afford and what you are comfortable paying each month. The point of a pre-approval is to ensure that you are not stretched beyond your means, or 'house poor'. The last thing you want is to struggle making your mortgage payments. We want to get you into a home that you can afford, so you can enjoy home ownership. This is the first essential step in the buying process, and will help narrow down the search for your home. The beauty of working with Team Bishop, is that we are a TEAM! We work closely with mortgage specialists in order to get the best rates and options for our clients. If you need to get in touch with a mortgage specialist feel free to contact:
*For more information on costs associated with purchasing a home
Step 2: Needs and wants
Creating a needs and wants list is essential when searching for a home. 'Needs' are something that you cannot live without. For example; a house must have 3 bedrooms in order to properly accomodate your family. 'Wants' are something that you would like in a house, but do not necessarily need in a house. A pool for instance would be an example of a 'want'. Remember, this is your first house and chnaces are you won't be in this house forever. You may not be able to have everything you want, and be able to stay within your budget, so you must be willing to make some concessions. Once this list is made, we will book private showings in the homes that meet your criteria. During the walk throughs we will be able to answer any questions that you may have about the houses.
Step 3: Drafting an offer to purchase
Chances are, when you walk into your future home you will have a moment of "this is it". Once you have decided on the home for you, we draft a legal document, called an 'offer to purchase'. This contract contains; the price you would like to offer on the home, the conditions of the offer (ie. home inspection, financing, lawyer's approval, etc.), the date of possesion, as well as other legalities.
Step 4: Acceptance and removal of conditions
Once an offer is submitted, the seller will either accept the offer or make a counter-offer. Once an offer is accepted, the conditions stated in the offer must must be satisfied by the buyer by a certain date. When all the conditions are satisfied the offer is finalized and is now a legal binding contract.
This is the process in its simplest form. If you have any questions, or would like to know more about homeownership dont't hesitate to call Team Bishop.