The Purchasing Pathway

Establishing the Purchase Pathway is laying out a step-by-step plan so you know what to expect

   

Step 1. Initial Appointment

The Purpose of the initial appointment is to understand your “needs and wants” as a buyer. This may be the most critical meeting of the home buying process. During this appointment, the entire purchasing pathway will be discussed.

Step 2. Determining the Purchasing Parameters

There are three criteria every buyer uses to find their home: location, price, style/condition. These criteria along with your “needs and wants”, will determine the properties we search for and the homes we initially view.

Step 3. Acquire a Pre-Approval

Viewing homes without a pre-approval usually leads to disappointment. Buyers who are wise discuss their financial situation with a reputable lender or mortgage broker and acquire a pre-approval. A pre-approval creates an opportunity for you to not just understand what you qualify for, but ultimately to decide what you can afford and/or be comfortable with paying each month. Having a pre-approval greatly enhances your negotiation position especially in a competitive market.

Step 4. View Homes

The process of viewing homers provides you with the information you need to make the best decision possible. Helping you find the right home for you is a process of elimination; not a process of selection. Viewing homes you may not think you like, is not a waste of time; it helps to build a frame of reference to help you find what you do like.

Step 5. Write an Offer

The best way to prepare for the contract phase of the transaction as a buyer is to review a blank copy of the typical purchased contract. Reading the contract prior to making an offer will make you much more comfortable during the negotiation phase. Depending upon the type of property you will be considering, will determine which blank copy of a contract I will provide to you.

Step 6. Deposit Earnest Money

An earnest money deposit is the best way of communicating to the seller that you’re serious about purchasing their property. Earnest money is part of the purchase price and is kept safe in a trust account until those funds are used to close the transaction.. Funds can be deposited by cheque or E-transfer.

Step 7. Perform the Home Inspection

After the offer is fully accepted and all terms are agreed upon, a home inspection can be performed if the contract allows. The inspection will allow you and the inspector you hire to take a more thorough look at the property including the mechanical, electrical, structural and operational aspects of the home.

The Purchasing Pathway continued….

Step 8. Satisfy and Waive Buyer Conditions

After final signing of the Offer and deliver of the initial deposit to the Seller’s brokerage, you will usually have 5 - 7 business days to satisfy any negotiated conditions you set, such as home inspection, confirmation of financing, etc. After this period of time you must either satisfy these conditions (sign a notice of Fulfillment of Conditions) or waive them (sign a Waiver of Conditions). By signing these documents, your agreement to purchase the property becomes unconditional. You have now firmed up the Offer and are ready to take the next steps toward home ownership.

Step 9. Executing Closing Documents

Once the Offer is firm, I will provide to your lawyer, copies of all of the documents you have signed thus far in the purchasing of your new home. You will meet with your lawyer several days prior to closing day to sign transfer of title, final mortgage documents and registering ownership with the city. You will need to bring with you to this meeting, the balance of your down payment plus the amount of the closing costs. Your lawyer will advise you exactly the amount required prior to your meeting .

Below is a list of most if not all of the documents you will be needing to sign prior to meeting with your lawyer:

  • Working With A Realtor
  • Buyer Representation
  • FINTRAC— Individual Identification Information Record
  • Agreement of Purchase and Sale
  • Confirmation of Cooperation and Representation
  • Notice of Fulfillment of Condition(s) - Where there are Buyer Conditions
  • Waiver - Agreement of Purchase and Sale - Where there are Buyer Conditions
  • Amendment to Agreement of Purchase and Sale - Where changes to the Agreement are necessary

Now let's find your dream home!