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Your first mortgage

You’ve finally taken the plunge and decided to buy a home. Now you want things to move quickly. If this is your very first mortgage, it’s normal to feel stressed throughout the process.

To help you as much as we can and make the process as smooth as possible, here is a summary of the ten main steps involved in the process of buying a home:

  1. Ask your mortgage broker to take the steps needed to secure a pre-approval. This will allow you to set a realistic budget and know your borrowing capacity.
  2. Set your basic criteria and start your search for the property that’s perfect for you. You may want to enlist a realtor to help you in your search and guide you through the purchase process.
  3. You’ve finally found the property you’ve been looking for! Now you need to make an offer to purchase. This is a legal document that includes the price you are offering, the closing date, and all of the conditions your offer to purchase is subject to. If you are working with a realtor, you won’t need to worry about writing an offer since he or she will prepare it for you.
  4. Before you submit your promise to purchase to the vendor, make sure it is worded properly. If in doubt, you can even check with a notary.
  5. To ensure there are no latent defects with your home, it is recommended that you have a professional home inspection carried out before you close the deal. The home inspector can point out any defects there are with the property, potentially saving you a lot of trouble.
  6. Stay in touch with your mortgage broker throughout the buying process so that he or she can start things moving with the lenders. Your broker can also help clarify some of the lenders’ requirements and help you gather all the necessary paperwork together.
  7. Before you see a notary to finalize the transaction, even if your loan has been approved, you will need to shop around for home insurance, since the notary will require proof of insurance.
  8. A few weeks before meeting with you, the notary will examine the property titles to make sure everything is in order and examine the certificate of location showing the current state of the property. The notary will also examine the current year’s taxes so they can be split between you and the vendor based on the occupancy of the property.
  9. A few days before closing, you will need to meet with your notary again to sign the legal paperwork for your mortgage loan. At this point you will have to pay your down payment, together with the legal fees and other additional costs incurred in purchasing the property.
  10. Finally, when the big day comes, your notary and the vendor’s notary, if they are not the same person, will exchange the signed documents and money so that your name can be officially registered on the property title. Now you’re finally a homeowner and can walk away with the keys!