From Click to Keys - The Home Buying Process

by Victoria Hillier

Buying your first home can feel overwhelming, but having a clear roadmap will help you feel confident and informed throughout the process. Here's everything you need to know, from finding the right realtor to signing on the dotted line!

Step 1: Finding the Right Realtor

A knowledgeable realtor can make all the difference. Here’s what to consider:

Experience with First-Time Buyers: Look for a realtor who understands the specific needs of new buyers and can explain each step clearly.
Local Market Expertise: They should have insight into neighborhoods, pricing trends, and how to negotiate effectively on your behalf.
Communication Style: Your realtor should be approachable and responsive, making you feel comfortable asking questions.

Pro Tip: Start by asking friends, family, or colleagues for recommendations, and interview a few realtors to find the right fit.

Step 2: Setting Your Budget & Getting Pre-Approved

Before you start shopping, it’s crucial to set a budget:

Determine Your Down Payment: The standard down payment structure varies (5% for the first $500,000 in Canada), but higher down payments can help lower monthly payments.
Pre-Approval: Pre-approval from a lender shows sellers that you're a serious buyer. It also gives you a clear picture of what you can afford, setting realistic expectations.
Factor in Other Costs: Remember to budget for closing costs, taxes, and ongoing home maintenance.

Pro Tip: Keep track of your credit score. A higher score can help secure a lower interest rate!

Step 3: House Hunting Like a Pro

This is the fun part! But it helps to stay organized:

Define Your Must-Haves vs. Nice-to-Haves: Think about the essential features (like number of bedrooms or proximity to work) and the extras (like a big backyard or finished basement).
Explore Neighborhoods: Drive around different areas at various times of the day to get a feel for the vibe.
Virtual Tours and In-Person Visits: Use online tours for an initial look and schedule in-person visits for homes you love.

Pro Tip: Keep notes on each home you visit. It’s easy to forget details after seeing multiple properties!

Step 4: Making an Offer

Once you find “the one,” it’s time to make an offer:

Understand Market Conditions: In a buyer’s market, you may have more negotiating power. In a seller’s market, homes can go fast, sometimes over the asking price.
Be Competitive, But Smart: Your realtor will help guide you on a fair offer price and suggest contingencies (like home inspection or financing conditions) to protect your interests.
Be Ready for Counteroffers: Sellers may counter your initial offer, so be prepared for some back-and-forth.

Pro Tip: Don’t stretch beyond your budget. There’s always another home if this one doesn’t work out!

Step 5: Due Diligence and Home Inspections

Before closing, you’ll want to make sure there are no surprises:

Home Inspection: A professional inspector can uncover potential issues with the property, from roof leaks to plumbing issues.
Reviewing Documents: Have your lawyer review the purchase agreement and any disclosures to ensure all the terms are clear.

Pro Tip: Use the inspection report as a negotiating tool—sellers might agree to fix issues or offer credit toward repairs.

Step 6: Closing the Deal

You’re almost there! Here’s what the final steps involve:

Final Walk-Through: Check that any agreed-upon repairs were completed and that the property is in good condition.
Sign the Closing Documents: With your lawyer, review and sign all the paperwork, including the mortgage and title documents.
Prepare for Closing Costs: Typically 1-5% of the purchase price, closing costs cover things like lawyer fees, title insurance, and taxes.

Pro Tip: Double-check all documents and don’t hesitate to ask questions—this is a big step, and clarity is key!

Welcome Home!

Congratulations! You’ve successfully closed on your first home. Now it’s time to settle in and make it your own. As you get familiar with homeownership, don’t forget about upkeep, budgeting for home maintenance, and connecting with your new community.