Disclaimer: The information listed in this article is not exhaustive. This is for general information purposes only and does not constitute legal or other professional advice or an opinion of any kind. Please contact us at 604 416 0211 or info@jurisnotary.com for more information.
Buying a house comes with many risks and responsibilities. Although survey results published by the Canada Mortgage and Housing Corporation shared that the main reason first-time buyers (49% of which were Millennials ranging from the ages of 25-34) purchased a home in 2018 was due to feeling “financially ready,” statistics from another poll conducted in 2015-2016 by Manulife showed that keeping up with mortgage loan payments over time can quickly leave home buyers short of funds, and abruptly faced with the need to adjust spending habits after making what is likely the largest purchase of a lifetime. Evidently, the real estate purchasing process can be an overwhelming experience for first-time buyers.
In the following article, Juris Notary summarizes the property buying process into 10 simple steps and offers insight into some of the most common mistakes homebuyers make, as well as useful tips on how to avoid making them.
The 10-Step Real Estate Buying Process
To begin, the real estate buying process can be broken down as follows:
- Considering a realistic budget for your home purchase.
- Researching options within your budget range.
- Get pre-qualified and pre-approved for a mortgage loan.
- Hiring a real estate agent that is right for you.
- Making an offer on your chosen home.
- Getting the home inspected.
- Choosing the right mortgage loan.
- Getting the home appraised.
- Reviewing and managing paperwork.
- Legally finalizing your purchase through a notary.
5 Tips on How to Avoid Common Purchasing Mistakes
1. Get pre-approved for a mortgage loan before going house-hunting.
Many first-time homebuyers will shop around for their dream home before applying for a mortgage loan. It is actually advised that you get pre-qualified and pre-approved for a loan before going house-hunting, so you can save time and energy to focus on making an offer on a house that you can realistically afford.
2. Speak with financial advisors at different banks.
Bank financial advisors can help review your most recent credit report and advise on loans and their respective interest rates based on your case. Visiting different banks may also provide you with additional context and guidance when it comes to understanding your options available.
3. Hire a realtor and a notary public as you make your informed purchase.
According to Business Insider, it’s advisable to work with a real estate agent who has your best interest in mind when purchasing a home. For example, a real estate agent Alan Hedrick deals with homes in the 2.5 million dollar range and recommends for his clients to place the highest down payment possible within your budget range so that mortgage payments and interest rates are easier to manage in the long run.
Realtors who can provide up to date market research and analysis for you are generally the way to go. Similarly, it is highly recommended that you work with a Notary Public to ensure smooth sailing when it comes to legal advice and contract management for your new home.
4. Be patient and persistent in your search for the perfect home for you.
You should purchase a home that is right for you. Don’t get persuaded by the urgency of the real estate market’s ups and downs when it comes to buying a home for the first time; buy within a realistic budget that you set for yourself based on your financial situation. Do all the research you can, and evaluate your options as they are presented to you with careful consideration.
5. Learn about closing costs so you can avoid going over-budget on unforeseen fees.
Some first-time buyers may be familiar with the concept of the property tax, which is to be paid annually, but not many are well-versed when it comes to closing costs. It is advisable to speak with a professional so that you’re not surprised by “hidden” fees or other costs you may not otherwise be prepared for.
Ready to Buy a New Home?
Juris Notary is here to help! To learn more about how our Juris Notary offices handle BC Property transfers and transactions in detail, please feel free to visit our Real Estate/Business Transfer Services page.
At Juris Notary, we can help with processing your BC real estate property purchase documents as needed. We maintain a standardized procedure where we can meet our clients in person and go over any questions or concerns you may have regarding your notarization needs.
Should you have any further questions regarding the services that a Notary Public can provide for you, feel free to contact us at 604.416.0211 or info@jurisnotary.com to speak with a legal representative today.
